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    jess236
    This document analyzes the business enterprise value of a company using a discounted cash flow valuation model. It provides financial projections for revenues, operating income, taxes, and net cash flow from 2009 to 2013 and calculates a terminal value. It discounts the projected net cash flows using a discount rate of 11.8% to determine an equity value of approximately $367,000 for the company.

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    Short Form DCF

    Uploaded by

    jess236
    133 views1 page
    This document analyzes the business enterprise value of a company using a discounted cash flow valuation model. It provides financial projections for revenues, operating income, taxes, and net cash flow from 2009 to 2013 and calculates a terminal value. It discounts the projected net cash flows using a discount rate of 11.8% to determine an equity value of approximately $367,000 for the company.

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    This document analyzes the business enterprise value of a company using a discounted cash flow valuation model. It provides financial projections for revenues, operating income, taxes, and net cash flow from 2009 to 2013 and calculates a terminal value. It discounts the projected net cash flows using a discount rate of 11.8% to determine an equity value of approximately $367,000 for the company.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    133 views1 page

    Short Form DCF

    Uploaded by

    jess236
    This document analyzes the business enterprise value of a company using a discounted cash flow valuation model. It provides financial projections for revenues, operating income, taxes, and net cash flow from 2009 to 2013 and calculates a terminal value. It discounts the projected net cash flows using a discount rate of 11.8% to determine an equity value of approximately $367,000 for the company.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 1

    [Company Name]

    BUSINESS ENTERPRISE VALUE ANALYSIS

    Assumptions
    Cost of Operations (% of sales) 57.0%
    Other Income (% of sales) 0.4%
    Tax Rate 40.0%
    Discount Rate 11.8%
    Long Term Growth Rate 4.0%
    Capitalization Rate 7.8%
    Discounted Cash Flow Valuation
    ($ in thousands)
    Actual Projected Terminal
    2009 2010 2011 2012 2013 Year

    Revenues 78,419.5 92,858.9 110,469.6 127,040.0 139,744.0 145,333.8


    Cost of Operations 48,694.0 52,929.6 62,967.7 72,412.8 79,654.1 82,840.3
    Operating Income 29,725.5 39,929.3 47,501.9 54,627.2 60,089.9 62,493.5
    Other Income 469.0 398.4 474.0 545.1 599.6 623.6
    Income Before Taxes 30,194.5 40,327.8 47,975.9 55,172.3 60,689.5 63,117.1
    Provision for Taxes 12,077.8 16,131.1 19,190.4 22,068.9 24,275.8 25,246.9
    Income After Taxes 18,116.7 24,196.7 28,785.6 33,103.4 36,413.7 37,870.3
    Plus: Depreciation & Amort 3,538.0 4,073.7 4,718.1 4,759.0 3,555.3 3,500.0
    Gross Cash Flow 21,654.7 28,270.4 33,503.7 37,862.4 39,969.0 41,370.3
    Less: Capital Expenditures 2,056.2 3,500.0 4,025.0 2,500.0 3,000.0 3,500.0
    Less: Incremental Working Capital - - 1,320.8 1,242.8 952.8 419.2
    Debt Free Net Cash Flow 19,598.5 24,770.4 28,157.9 34,119.6 36,016.2 37,451.0

    Operating Income % 37.9% 43.0% 43.0% 43.0% 43.0% 43.0%


    Revenue Growth % NA 18.4% 19.0% 15.0% 10.0% 4.0%
    Net Income % 23.1% 26.1% 26.1% 26.1% 26.1% 26.1%
    Net Income Growth % NA 33.6% 19.0% 15.0% 10.0% 4.0%
    Net Cash Flow % 25.0% 26.7% 25.5% 26.9% 25.8% 25.8%
    Net Cash Flow Growth % NA 26.4% 13.7% 21.2% 5.6% 4.0%

    Calculated
    Terminal
    Value 480,141.6

    Years To Discount 1.0 2.0 3.0 4.0 5.0


    Discount Rate PVI Factors 89.4% 80.0% 71.6% 64.0% 57.3%

    Present Value of Net Cash Flow 22,156.0 22,527.7 24,416.2 23,053.2 274,890.9

    Annuity of Cash Flows 92,153.0


    Terminal Value 274,890.9
    Enterprise Value 367,043.9
    Less: Interest bearing debt -
    Equity Value 367,043.9
    Rounded Equity Value $367,000

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