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Technology Stocks : WCOM

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To: Oeconomicus who wrote (10472)6/5/2002 3:58:26 PM
From: BEEF JERKEY  Read Replies (1) of 11568
 
The $2 billion free cash is a rough number I've had floating around my head but maybe I should do a more complete study to consider the new information just made public and the point you made Re: debt service/debt being a pre Free Cash Flow Item:

Ok then:

WCOM current EBITA = $7.1 billion + Current MCI EBITA = $1 billion = ~ $8.1 billion
Intergroup Allocation Savings = 700 million EBITA
SG&A cuts (layoffs) = ~ $1.2 billion
Losing WCOM wireless = $ .2 billion

Total EBITA (conservative) = $10.3 billion

Taxes (I'm not too sure of this no but if I take last years highest q x 4) = $.64 billion
Interest expense = ~ $ 2.0 .billion
Capex = $3.9 billion

Total expense = $ 6.94 billion

Free Cash Flow = $3.36 billion?

That would mean an enterprise value of $3.36 billion x 17.5 =$58.8 billion of shareholder equity after debt service?

WHAT DID I DO WRONG? IT CANT BE THAT GOOD!

biz.yahoo.com
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