Generalized Free Cash Flow to the Firm (FCFF) Model for Negative Earnings Firms

The user has to define the following inputs:

- Length of high growth period

- Expected growth rate in earnings during the high growth period.

- Capital Spending, Depreciation and Working Capital needs during the high growth period.

- Expected growth rate in earnings during the stable growth period.

- Inputs for the cost of capital. (Cost of equity, Cost of debt, Weights on debt and equity)

Note: this model is being shared with the authorization of Professor Aswath Damodaran from NYU Stern Business School (www.damodaran.com)