1. Firm valuation on FCFF (free cash flow to firm)
Value of the three levels multiple growth firm on yearly basis FCFF
Value of firm =
FCFFn1
(1+WACC)n1
+
FCFFn2
(1+WACC)n1+n2
+
FCFF n2 + 1
WACC−g3
(1+ WACC)n1+n2
= [FCFF ×
1−
(1+g1)n1
(1+WACC) 𝑛1
WACC−g1
] + [FCFFn1
×
[1−
(1+g2) n2
(1+WACC)n1+n2
]−[ 1−
1
(1+WACC)n1
]
WACC−g2
] +
[
FCFFn2(1+g3)
WACC−g3
×
(1+ WACC)n1+n2
]
FCFFn1
= FCFF × (1 + g1)n1 and
FCFFn2
= FCFFn1
× (1 + g2)n2
Here n1 = 1st
number of years,
n2 = 2nd
number of years,
n2+1 = next year of 2nd
number of years,
g1 = growth rate for the 1st
number of years,
g2 = growth rate for the 2nd
number of years,
g3 = growth rate forever after the 2nd
number of years.
In the above formula, the three types annuities have been used such the 1st
part of the above formula
is the growing annuity, the 2nd
part of it is the deferred growing annuity and the 3rd
part of it is the
perpetual annuity.
Value of three levels Multiple Growth Firm on half yearly or quarterly basis FCFF
Value of Firm =
FCFFn1
(1+
WACC
m
)
mn1
+
FCFFn2
(1+
WACC
m
)
m(n1+n2) +
FCFFn2+1
WACC
m
−
g3
m
(1+
WACC
m
)m(n1+n2)
= [FCFF ×
1−
(1+
g1
m
)mn1
(1+
WACC
m
)mn1
WACC
m
−
g1
m
] + [FCFFn1
×
[1−
(1+
g2
m
)mn2
(1+
WACC
m
)m(n1+n2)
]−[1−
1
(1+
WACC
m
)mn1
]
WACC
m
−
g2
m
] +
[
FCFFn2 ×[(1+
WACC
m
)(1+
g3
m
)]m
WACC
m
−
g3
m
(1+
WACC
m
)m(n1+n2)
]
Here if FCFF = half-yearly amount then m = 2 and if FCFF = quarterly amount then m = 4
FCFFn1
= FCFF × [(1+
WACC
m
) × (1+
g1
m
)]mn1
FCFFn2
= FCFFn1
× [(1+
WACC
m
) × (1+
g2
m
)]mn2
Similarly, four levels multiple growth firm or five levels multiple growth firm or six levels
multiple growth firm would be larger.

2. Four Levels Multiple Growth on yearly FCFF
Value of firm =
FCFFn1
(1+WACC)n1
+
FCFFn2
(1+WACC)n1+n2
+
FCFFn3
(1+WACC)n1+n2+n3
+
FCFF n3+1
WACC−g4
(1+ WACC)n1+n2+ n3
= [FCFF ×
1−
(1+g1)n1
(1+WACC) 𝑛1
WACC−g1
] + [FCFFn1
×
[1−
(1+g2) n2
(1+WACC)n1+n2
]−[ 1−
1
(1+WACC)n1
]
WACC−g2
]+
[FCFFn2
×
[1−
(1+g3) n3
(1+WACC)n1+n2+n3
]−[ 1−
1
(1+WACC)n1+n2
]
WACC−g3
] + [
FCFFn3(1+g4)
WACC−g4
(1+ WACC)n1+n2+n3
]
FCFFn1
= FCFF × (1 + g1)n1 and FCFFn2
= FCFFn1
× (1 + g2)n2
FCFFn3
= FCFFn2
× (1 + g3)n3
Four Levels Multiple Growth Firm on half-yearly or quarterly FCFF
Value of firm =
FCFFn1
(1+
WACC
m
)
mn1
+
FCFFn2
(1+
WACC
m
)
mn2
+
FCFFn3
(1+
WACC
m
)
mn3
+
FCFFn3+1(1−T)
WACC
m
−
g4
m
(1+
WACC
m
)mn3
= [FCFF ×
1−
(1+
g1
m
)mn1
(1+
WACC
m
)mn1
WACC
m
−
g1
m
] + [FCFFn1
×
[1−
(1+
g2
m
)mn2
(1+
WACC
m
)m(n1+n2)
]−[1−
1
(1+
WACC
m
)mn1
]
WACC
m
−
g2
m
] +
[FCFFn2
×
[1−
(1+
g3
m
)mn2
(1+
WACC
m
)m(n1+n2+n3)
]−[1−
1
(1+
WACC
m
)m(n1+n2)
]
WACC
m
−
g3
m
] + [
FCFFn3 ×[(1+
WACC
m
)(1+
g4
m
)]m
WACC
m
−
g4
m
(1+
WACC
m
)m(n1+n2+n3)
]
Here if FCFF = half-yearly amount then m = 2 and if FCFF = quarterly amount then m = 4
FCFFn1
= FCFF × [(1+
WACC
m
) × (1+
g1
m
)]mn1
FCFFn2
= FCFFn1
× [(1+
WACC
m
) × (1+
g2
m
)]mn2
FCFFn3
= FCFFn2
× [(1+
WACC
m
) × (1+
g3
m
)]mn3
Name of others Formulas on FCFF
Value of Zero Growth Firm on FCFF
1. Value of Zero growth firm (entire life) on yearly basis FCFF.
2. Residual value of Zero growth firm which passed some periods on yearly basis FCFF.
3. Value of Zero growth firm (entire life) on half-yearly basis FCFF.
4. Residual value of Zero growth firm which passed some periods on half-yearly basis FCFF.

3. 5. Value of Zero growth firm (entire life) on quarterly basis FCFF.
6. Residual value of Zero growth firm which passed some periods on quarterly basis FCFF.
Value of Constant Growth Firm on FCFF
7. Value of Constant growth firm (entire life) on yearly basis FCFF.
8. Residual value of Constant growth firm which passed some periods on yearly basis FCFF.
9. Value of Constant growth firm (entire life) on half-yearly basis FCFF.
10. Residual value of Constant growth firm which passed some periods on half-yearly basis FCFF.
11. Value of Constant growth firm (entire life) on quarterly basis FCFF.
12. Residual value of Constant growth firm which passed some periods on quarterly basis FCFF.
Value of Three Levels Multiple Growth Firm on FCFF
13. Value of Three Levels Multiple growth firm (entire life) on yearly basis FCFF.
14. Residual value of Three Levels Multiple growth firm which passed some periods on yearly basis FCFF.
15. Value of Three Levels Multiple growth firm on half-yearly basis FCFF.
16. Residual value of Three Levels Multiple growth firm which passed some periods on half-yearly basis FCFF.
17. Value of Three Levels Multiple growth firm on quarterly basis FCFF.
18. Residual value of Three Levels Multiple growth firm which passed some periods on quarterly basis FCFF.
Value of Four Levels Multiple Growth Firm on FCFF
19. Value of Four Levels Multiple growth firm on yearly basis FCFF.
20. Residual value of Zero growth firm which passed some periods on yearly basis FCFF.
21. Value of Four Levels Multiple growth firm on half-yearly basis FCFF.
22. Residual value of Four Levels Multiple growth firm which passed some periods on half-yearly basis FCFF.
23. Value of Four Levels Multiple growth firm on quarterly basis FCFF.
24. Residual value of Four Levels Multiple growth firm which passed some periods on quarterly basis FCFF.

4. Value of Five Levels Multiple Growth Firm on FCFF
25. Value of Five Levels Multiple growth firm on yearly basis FCFF.
26. Residual value of Five Levels Multiple growth firm which passed some periods on yearly basis FCFF.
27. Value of Five Levels Multiple growth firm on half-yearly basis FCFF.
28. Residual value of Five Levels Multiple growth firm which passed some periods on half-yearly basis FCFF.
29. Value of Five Levels Multiple growth firm on quarterly basis FCFF.
30. Residual value of Five Levels Multiple growth firm which passed some periods on quarterly basis FCFF.
Firm valuation on MVA (market value added) model
Three Levels Multiple Growth Firm on yearly MVA
Value of firm =
MVAn1
(1+β)n1
+
MVAn2
(1+β)n1+n2
+
MVA n2+1
β−g3
(1+ β)n1+n2
= [MVA×
1−
(1+g1)n1
(1+β)n1
β−g1
] + [MVAn1
× [
[1−
(1+g2) 𝑛2
(1+β) 𝑛1+𝑛2
]−[ 1−
1
(1+β)n1
]
β−g2
] + [
MVAn2(1+g3)
β−g3
(1+ β)n1+n2
]
MVAn1
= MVA (1 + g1)n1
MVAn2
= MVAn1
(1 + g2)n2
Four levels multiple growth firm on yearly MVA
Value of firm =
MVAn1
(1+β)n1
+
MVAn2
(1+β)n1+n2
+
MVAn3
(1+β)
n1+n2+n
3
+
MVAn3(1+g4)
β−g4
(1+ β)n1+n2+n3
= [MVA ×
1−
(1+g1)n1
(1+β)n1
β−g1
] + [MVAn1
× [
[1−
(1+g2) 𝑛2
(1+β) 𝑛1+𝑛2
]−[ 1−
1
(1+β)n1
]
β−g2
] +
[MVAn2
× [
[1−
(1+g3) 𝑛3
(1+β) 𝑛1+𝑛2+𝑛3
]−[ 1−
1
(1+β)n1+𝑛2
]
β−g3
] +
MVAn3(1+g4)
β−g4
(1+ β)n1+n2+n3
MVAn1
= MVA (1 + g1)n1
MVAn2
= MVAn1
(1 + g2)n2
MVAn3
= MVAn2
(1 + g3)n3

5. Three Levels Multiple Growth Firm on half-yearly or quarterly MVA
Value of firm =
MVAn1
(1+
β
m
)
mn1
+
MVAn2
(1+
β
m
)
m(n1+n2) +
MVAn2+1
β
m
−
g3
m
(1+
β
m
)
m(n1+n2)
= [MVA ×
1−
(1+
g1
m
)mn1
(1+
β
m
)mn1
β
m
−
g1
m
] + [MVAn1
×
[1−
(1+
g2
m)
mn2
(1+
β
m)
m(n1+n2)
]−[1− 1
(1+
β
m)
mn1
]
β
m
−
g2
m
]+
[
MVAn2 ×[(1+
β
m
)(1+
g3
m
)]m
β
m
−
g3
m
(1+
β
m
)
m(n1+n2)
]
If MVA = half-yearly amount then m = 2 and MVA = quarterly amount then m = 4
MVAn1
= MVA × [(1+
β
m
) × (1+
g1
m
)]mn1
MVAn2
= MVAn1
× [(1+
β
m
) × (1+
g2
m
)]mn2
Four Levels Multiple Growth Firm on half-yearly or quarterly MVA
Value of firm =
MVAn1
(1+
β
m
)
mn1
+
MVAn2
(1+
β
m
)
m(n1+n2) +
MVAn3
(1+
β
m
)
m(n1+n2+n3)+
MVAn3+1
WACC
m
−
g4
m
(1+
β
m
)
m(n1+n2+n3)
= [MVA ×
1−
(1+
g1
m
)mn1
(1+
β
m
)mn1
β
m
−
g1
m
] + [MVAn1
× [
[1−
(1+
g2
m)
mn2
(1+
β
m)
m(n1+n2)
]−[1− 1
(1+
β
m)
mn1
]
β
m
−
g2
m
] +
[MVAn2
× [
[1−
(1+
g3
m)
mn3
(1+
β
m)
m(n1+n2+n3)
]−
[
1− 1
(1+
β
m)
m(n1+n2)
]
β
m
−
g3
m
] + [
MVAn3[(1+
β
m
)(1+
g4
m
)]m
β
m
−
g4
m
(1+
β
m
)m(n1+n2+n3)
]
MVAn1
= MVA × [(1+
β
m
) × (1+
g1
m
)]mn1
MVAn2
= MVAn1
× [(1+
β
m
) × (1+
g2
m
)]mn2
MVAn3
= MVAn2
× [(1+
β
m
) × (1+
g3
m
)]mn3
Name of others Formulas on MVA model

6. Value of Zero Growth Firm on MVA
1. Value of Zero growth firm (entire life) on yearly basis MVA.
2. Residual value of Zero growth firm which passed some periods on yearly basis MVA.
3. Value of Zero growth firm (entire life) on half-yearly basis MVA.
4. Residual value of Zero growth firm which passed some periods on half-yearly basis MVA.
5. Value of Zero growth firm (entire life) on quarterly basis MVA.
6. Residual value of Zero growth firm which passed some periods on quarterly basis MVA.
Value of Constant Growth Firm on MVA
7. Value of Constant growth firm (entire life) on yearly basis MVA.
8. Residual value of Constant growth firm which passed some periods on yearly basis MVA.
9. Value of Constant growth firm (entire life) on half-yearly basis MVA.
10. Residual value of Constant growth firm which passed some periods on half-yearly basis MVA.
11. Value of Constant growth firm (entire life) on quarterly basis MVA.
12. Residual value of Constant growth firm which passed some periods on quarterly basis MVA.
Value of Three Levels Multiple Growth Firm on MVA
13. Value of Three Levels Multiple growth firm (entire life) on yearly basis MVA.
14. Residual value of Three Levels Multiple growth firm which passed some periods on yearly basis MVA.
15. Value of Three Levels Multiple growth firm on half-yearly basis MVA.
16. Residual value of Three Levels Multiple growth firm which passed some periods on half-yearly basis MVA.
17. Value of Three Levels Multiple growth firm on quarterly basis MVA.
18. Residual value of Three Levels Multiple growth firm which passed some periods on quarterly basis MVA.
Value of Four Levels Multiple Growth Firm on MVA
19. Value of Four Levels Multiple growth firm on yearly basis MVA.
20. Residual value of Zero growth firm which passed some periods on yearly basis MVA.
21. Value of Four Levels Multiple growth firm on half-yearly basis MVA.

7. 22. Residual value of Four Levels Multiple growth firm which passed some periods on half-yearly basis MVA.
23. Value of Four Levels Multiple growth firm on quarterly basis MVA.
24. Residual value of Four Levels Multiple growth firm which passed some periods on quarterly basis MVA.
Value of Five Levels Multiple Growth Firm on MVA
25. Value of Five Levels Multiple growth firm on yearly basis MVA.
26. Residual value of Five Levels Multiple growth firm which passed some periods on yearly basis MVA.
27. Value of Five Levels Multiple growth firm on half-yearly basis MVA.
28. Residual value of Five Levels Multiple growth firm which passed some periods on half-yearly basis MVA.
29. Value of Five Levels Multiple growth firm on quarterly basis MVA.
30. Residual value of Five Levels Multiple growth firm which passed some periods on quarterly basis MVA.
Firm valuation on EBIT (Earnings before interest and tax) model
Three Levels Multiple Growth Firm on yearly EBIT
Value of unlevered firm =
EBITn1
(1−T)
(1+Ke)n1
+
EBITn2(1−T)
(1+Ke)n1+n2
+
EBIT n2+1(1−T)
Ke−g3
(1+ Ke)n1+n2
= [{EBIT (1 – T)} ×
1−
(1+g1)n1
(1+Ke)n1
Ke−g1
] + [{EBITn1
(1 – T)} ×
[1−
(1+g2) n2
(1+Ke)n1+n2
]−[ 1−
1
(1+Ke)n1
]
Ke−g2
] +
[
EBITn2(1+g3)
Ke−g3
× (1 – T)
(1+ Ke)n1+n2
]
EBITn1
= EBIT × ((1 + g1)n1 and EBITn2
= EBITn1
× (1 + g2)n2
Value of levered firm =
EBITn1
(1−T)
(1+K0)n1
+
EBITn2{(1−T)
(1+K0)n2
+ [
EBIT n2+1(1−T)
K0−g3
(1+ K0)n1+n2
+ (debt × tax rate)]
= [EBIT (1 – T) ×
1−
(1+g1)n1
(1+K0)n1
K0−g1
] + [EBITn1
(1 – T) ×
[1−
(1+g2) n2
(1+K0)n1+n2
]−[ 1−
1
(1+K0)n1
]
K0−g2
] +
[
EBITn2(1+g3)
K0−g3
× (1 – T)
(1+ K0)n1+n2
+ (debt × tax rate)]

8. Three Levels Multiple Growth Firm on half-yearly or quarterly EBIT
Value of Unlevered Firm =
EBITn1(1−T)
(1+
Ke
m
)
m𝑛1
+
EBITn2(1−T)
(1+
Ke
m
)
m(n1+n2) +
EBITn2+1(1−T)
Ke
m
−
g3
m
(1+
Ke
m
)
m(n1+n2)
= [EBIT (1-T) ×
1−
(1+
g1
m
)mn1
(1+
Ke
m
)mn1
Ke
m
−
g1
m
] + [EBITn1
(1 − T) ×
[1−
(1+
g2
m)
mn2
(1+
Ke
m )
m(n1+n2)
]−[1− 1
(1+
Ke
m )
mn1
]
Ke
m
−
g2
m
]+
[
EBITn2 ×[(1+
Ke
m
)(1+
g3
m
)]m
Ke
m
−
g3
m
×(1−T)
(1+
Ke
m
)m(n1+n2)
]
Here if EBIT = half-yearly amount then m = 2 and EBIT = quarterly amount then m = 4
EBITn1
= EBIT × [(1+
Ke
m
) × (1+
g1
m
)]mn1 and
EBITn2
= EBITn1
× [(1+
Ke
m
) × (1+
g2
m
)]mn2
Value of Levered Firm =
EBITn1(1−T)
(1+
Ko
m
)
mn1
+
EBITn2(1−T)
(1+
Ko
m
)
mn2
+ [
EBITn2+1(1−T)
Ko
m −
g3
m
(1+Ko
m
)
mn2
+ (debt × tax rate)]
= [EBIT (1-T) ×
1−
(1+
g1
m
)mn1
(1+
Ko
m
)mn1
Ko
m
−
g1
m
] + [EBITn1
(1 − T) ×
[1−
(1+
g2
m)
mn2
(1+
Ko
m )
m(n1+n2)
]−[1− 1
(1+
Ko
m )
mn1
]
Ko
m
−
g2
m
]
+ [
EBITn2 ×[(1+
Ko
m
)(1+
g3
m
)]m
Ko
m
−
g3
m
×(1−T)
(1+
Ko
m
)m(n1+n2)
+ (debt × tax rate)]
Here if EBIT = half-yearly amount then m = 2 and EBIT = quarterly amount then m = 4
EBITn1
= EBIT × [(1+
Ko
m
) × (1+
g1
m
)]mn1
EBITn2
= EBITn1
× [(1+
Ko
m
) × (1+
g2
m
)]mn2
EBITn3
= EBITn2
× [(1+
Ko
m
) × (1+
g3
m
)]mn3
Similarly more formulas have for the value of firm on EVA (economic value added) Model
Please note: All above formulas are under the law of copy right act of Bangladesh so no part of
these material can be used at commercial purpose without the permission of author.