Revenue model
Offline
2017 2018 E 2019 E 2020 E
Cont. / store (in cr) 0.91 1.17 1.45 1.73
[xx] 19% 25% 31% 37%
# of stores 32 51 70 100
Online
2017 2018 E 2019 E 2020 E
Internet Penetration 5% 7% 9% 11%
Value in Furniture Market 69032 71207 73450 75770
Pepperfry share 2.67% 3.670% 4.670% 5.670%
Pepperfry Revenue Growt 92.16 172.41 298.61 493.50
CAGR 3.15% 3.54%
Online 2017 2018 E 2019 E 2020 E
Order value 18000 18000 18000 18000
# of orders 49583.333333
# of customers 24791.666667
Traffic 72000000
Penetration 0.03% 0.53% 1.28% 2.03%
2021 E 2022 E 2018 E 2019 E 2020 E
2.01 2.29 32 37.402597403 46.379220779 55.355844156
43% 49% 19 17.303571429 22.207792208 27.537662338
19 - 17.303571429 22.207792208
120 130 30 - - 27.321428571
20 - - -
10 - - -
2021 E 2022 E CAGR Total 54.706168831 85.890584416 132.42272727
15% 20% 32%
78452 81229
6.670% 7.670%
793.14 1246.06
3.54%
2021 E 2022 E CAGR
18000 18000
2.78% 3.53%
2021 E 2022 E
64.332467532 73.309090909
32.867532468 38.197402597
27.537662338 32.867532468
35.064935065 43.480519481
18.214285714 23.376623377
- 9.1071428571
178.01688312 220.33831169
(All values in INR cr except xx data)
Historical
Pepperfry - FCF Projections 2013 2014 2015
Online
Growth (%)
Studios
Growth (%)
Other Revenue
Total Revenue 6.9 7.5 25.3
Growth (%) 9% 237%
Advertising Expenses
% of Revenue
Employee benefit Expenses
% of Revenue
Transportation cost
% of Revenue
Other Operational Expenses
% of Revenue
Total Expenses 47 37 112
Losses (40) (30) (87)
EBITDA
Tax
PAT
Adjustment for non-cash charges:
D&A
Net Change in Working Capital:
Capital Expenditure:
Unlevered FCF
PV of FCF
DCF Output (INR mn)
Terminal Value - Perpetuity Growth Method (INR mn)
Baseline Terminal FCF Growth Rate
Baseline Terminal Value
PV of Terminal Cash Flows
Sum of PV of Free Cash Flow
Implied Enterprise Value
(-) Net Debt
Implied Equity Value
0 1 2 3
Historical Projected
2016 2017 2018 E 2019 E 2020 E 2021 E
89 172 299 493 793
93% 73% 65% 61%
32 55 86 132 178
72% 57% 54% 34%
6 13.6 23.1 37.6 58.3
98 128 241 408 663 1,029
288% 30% 89% 69% 63% 55%
136 196.94 233.56 217.66 337.71
106% 81.81% 57.31% 32.81% 33%
28 44.91 63.80 83.96 130.27
22% 19% 16% 13% 13%
11 18.92 27.95 38.87 60.31
9% 8% 7% 6% 6%
77 96.4 81.7 133.0 206.3
60% 40.0% 20.0% 20.0% 20.0%
250 251 357 407 473 735
(152) (124) (116) 1 190 295
(116) 1 190 295
0.20 66.50 103.18
0.36 123.50 191.62
#REF! #REF! #REF! #REF! #REF! #REF!
#REF! #REF! #REF! #REF!
4%
#REF!
#REF!
#REF!
#REF!
#REF!
#REF!
4
2022 E
1,246
57% 2017
220 0.910714285714286
24% 19%
88.0
1,554
51% 32
11
509.93 24
33%
196.71
13%
91.07
6%
311.5
20%
1,109
445
445
155.80
289.34
#REF!
#REF!
2018 E 2019 E 2020 E 2021 E 2022 E
1.144481 1.378246753 1.612013 1.845779
24% 29% 34% 39%
2018 E 2019 E 2020 E 2021 E 2022 E
36.62338 44.1038961 51.58442 59.06494
10.01785714 12.58929 15.16071
21.85714 27.46753
Online Stores
Date Nifty 50 Returns Small cap Returns
Sep-13 5,735.3 2,739.2
Oct-13 6,299.2 0.09 3,068.3 0.11
Nov-13 6,176.1 (0.02) 3,183.9 0.04
Dec-13 6,304.0 0.02 3,402.9 0.07
Jan-14 6,089.5 (0.03) 3,188.2 (0.07)
Feb-14 6,277.0 0.03 3,276.6 0.03
Mar-14 6,704.2 0.07 3,693.0 0.12
Apr-14 6,696.4 (0.00) 3,933.6 0.06
May-14 7,230.0 0.08 4,814.1 0.20
Jun-14 7,611.4 0.05 5,389.4 0.11
Jul-14 7,721.3 0.01 5,060.7 (0.06)
Aug-14 7,954.4 0.03 5,005.2 (0.01)
Sep-14 7,964.8 0.00 4,943.4 (0.01)
Oct-14 8,322.2 0.04 5,146.2 0.04
Nov-14 8,588.3 0.03 5,188.2 0.01
Dec-14 8,282.7 (0.04) 5,272.9 0.02
Jan-15 8,808.9 0.06 5,464.6 0.04
Feb-15 8,901.9 0.01 5,689.2 0.04
Mar-15 8,491.0 (0.05) 5,623.3 (0.01)
Apr-15 8,181.5 (0.04) 5,461.9 (0.03)
May-15 8,433.7 0.03 5,564.8 0.02
Jun-15 8,368.5 (0.01) 5,324.0 (0.04)
Jul-15 8,532.9 0.02 5,722.9 0.07
Aug-15 7,971.3 (0.07) 5,167.3 (0.10)
Sep-15 7,948.9 (0.00) 5,233.4 0.01
Oct-15 8,065.8 0.01 5,362.5 0.02
Nov-15 7,935.3 (0.02) 5,546.5 0.03
Dec-15 7,946.4 0.00 5,653.3 0.02
Jan-16 7,563.6 (0.05) 5,030.5 (0.12)
Feb-16 6,987.1 (0.08) 4,362.6 (0.14)
Mar-16 7,738.4 0.10 4,884.9 0.11
Apr-16 7,849.8 0.01 5,201.6 0.06
May-16 8,160.1 0.04 5,217.4 0.00
Jun-16 8,287.8 0.02 5,813.5 0.11
Jul-16 8,638.5 0.04 6,086.1 0.05
Aug-16 8,786.2 0.02 6,171.8 0.01
Sep-16 8,611.2 (0.02) 6,137.3 (0.01)
Oct-16 8,625.7 0.00 6,499.6 0.06
Nov-16 8,224.5 (0.05) 5,841.2 (0.11)
Dec-16 8,185.8 (0.00) 5,780.9 (0.01)
Jan-17 8,561.3 0.04 6,302.2 0.09
Feb-17 8,879.6 0.04 6,708.2 0.06
Mar-17 9,173.8 0.03 6,984.9 0.04
Apr-17 9,304.1 0.01 7,443.5 0.06
May-17 9,621.3 0.03 7,183.0 (0.04)
Jun-17 9,520.9 (0.01) 7,311.1 0.02
Jul-17 10,077.1 0.06 7,800.8 0.06
Aug-17 9,917.9 (0.02) 7,748.5 (0.01)
Sep-17 9,788.6 (0.01) 7,584.5 (0.02)
Oct-17 10,335.3 0.05 8,549.7 0.12
Nov-17 10,226.6 (0.01) 8,712.5 0.02
Dec-17 10,530.7 0.03 9,093.3 0.04
Jan-18 11,027.7 0.05 8,816.9 (0.03)
Feb-18 10,492.9 (0.05) 8,356.5 (0.05)
Mar-18 10,113.7 (0.04) 7,792.0 (0.07)
Apr-18 10,739.4 0.06 8,389.9 0.07
May-18 10,736.2 (0.00) 7,829.7 (0.07)
Jun-18 10,714.3 (0.00) 7,177.8 (0.09)
Jul-18 11,132.5 0.04 7,196.4 0.00
Average 0.011435 0.016654
Annualized 13.7% 20.0%
WACC Calculation Comment
Cost of Equity
Rf 7.79% 10 year Govt bond yield
Market Risk Premium
(Rm-Rf) 7.27% Damodaran
Beta #NAME?
Re #NAME? Beta Calculation
Freshtrop Fruits (Comparable Company)
Cost of Debt 20% Beta 1.35
D/E 2.14
Other Factors Unlevered 0.43
D/E #NAME?
Relevered #NAME?
Cost of Capital (Debt + Equity) #NAME?
Other Premiums
Geographical concentration 1.0%
Business Risk 3.0%
Size Premium 6.3%
WACC #NAME?
its (Comparable Company)
