Free cash flow valuation. Nabor Industries is considering going public but is unsure of a fair offering price for the company. Before hiring an investment banker to assist in making the public? offering, managers at Nabor have decided to make their own estimate of the? firm's common stock value. The? firm's CFO has gathered data for performing the valuation using the free cash flow valuation model. The? firm's weighted average cost of capital is 11 % 11%?, and it has $ 2 comma 500 comma 000 $2,500,000 of debt at market value and $ 500 comma 000 $500,000 of preferred stock at its assumed market value. The estimated free cash flows over the next 5? years, 2016 through? 2020, are given in the? table, LOADING... . Beyond 2020 to? infinity, the firm expects its free cash flow to grow by 3 % 3% annually.