Thanks Simrat for helping. Actually this post had me believing that we’re supposed to take the EBIDTA as FCF, because taking 3 yrs avg Free Cash Flow was giving me an intrinsic value which was way off from the current market price. However taking EBIDTA gave me a number closer to the current market price.
What other valuation methods do you use other than PE and PEG? Currently RACL is trading at a PE of 33, do you feel that it’s fairly valued? I feel that given it’s growth potential, 33 isn’t too expensive.