Final answer:
The company's total value is estimated by calculating the PDV of its forecasted profits and investments using a chosen interest rate. The value per share is determined by dividing the PDV of total profits by the total number of shares. Equity and debt values require additional analysis of the company's financial structure.
Step-by-step explanation:
To estimate the value of Buildwell Conservation, one needs to compute the present discounted value (PDV) of its future profits and investments, assuming EBITDA, depreciation, and investment remain constant after the fourth year. This involves discounting future values by an appropriate interest rate to determine the current worth of the expected profits. To arrive at the company's total value, present values of future benefits for the relevant time periods must be aggregated.
For example, if Buildwell Conservation has 200 shares, and the PDV of its total profits is 51.3 million dollars, dividing this by the number of shares gives us the value per share, which would be 0.2565 million dollars, or approximately $256,500 per share. The decision on which interest rate to use for discounting is critical and is usually based on the company's cost of capital or other relevant benchmarks.
Separating the value of debt and equity requires further financial analysis, understanding the company's capital structure and assessing the risk and return profiles of each component.