Dear all, I do FCFF valuation for listed company which have two : stage 1 is before mature and stage 2 is mature. I assume that 2025 is the last year of stage 1. Capex in 2025 have impact on FCFF and 2025’s FCFF have a significant impact on the valuation results. Please tell me how to adjust the capex for 2025 (consider likely mature).
- Does it only count for maintenance capex?
- Does it count for both maintenance capex and replacement capex? If it include replacement capex, how to calculate replacement capex?
- I see that some company named as mature like Cocacola, Pepsi Co…It still invest new capex? So does we add new capex for year 2025 in our model? And how we calculate new capex for this year?
Thanks so much