Question 1
Calculate the share price using the following information below:
The discount rate is 9.0%
Net debt 173,500.0
The number of shares outstanding 75,000.0
Years 1.0 2.0 3.0 4.0 5.0
Free cash flows 56,894.0 60,307.0 63,021.0 68,063.0 73,508.0
Terminal value 670,000.0
Dicount factor 91.7% 84.2% 77.2% 70.8% 65.0%
PV of cash flows 52,196.3 50,759.2 48,663.8 48,217.5 47,775.2
Question 2
Calculate the share price for Baffled Clueless Dumbfounded (BCD) from the following information:
Debt 148,000.0
Cash 3,700.0 Equity Value 252,400.0
Investments 2,300.0
Value of two building that are being utilized is 65,000.0
Value of one building not being utilized is 33,400.0
The number of shares outstanding is 362,500.0
Discount rate 9.0%
Years 1.0 2.0 3.0 4.0 5.0
Free cash flows 47,500.0 49,320.0 50,127.0 50,250.0 52,000.0 year 6 to inifinty
Terminal value 470,000.0
Discount factor 91.7% 84.2% 77.2% 70.8% 65.0%
PV of cash flows 43,578.0 41,511.7 38,707.2 35,598.4 33,796.4
Sum of pv of cash flows 193,191.7
PV of terminal Value 305,467.8
Enterprise Value 498,659.4
Cash 3,700.0
Investment 2,300.0
Value of building not utlized 33,400.0
Debt 148,000.0
Equity Value 390,059.4
Price Per share 1.1
Question 5
Calculate the implied value per share of the following company. Assume the cash flows fall at the middle of each year. (Term
Discount rate 7.0% 0.07
1.07
Year Current 1.0 2.0 3.0
Free Cash Flow 100.0 110.0 120.0
Terminal value
pv 93.5 96.1 98.0
Balance sheet total pv 482.9
Cash 50.0 +
Debt 300.0 -
Shares outstanding 100.0 implied value per share
Question 6
Calculate the terminal value implied EV / EBITDA multiple for the following
company. Assume the cash flows fall at the middle of each year.
Discount rate 9.0% 0.09
Long term growth rate 2.5% 0.025
Year Current 1.0 2.0 3.0
EBITDA 300.0 330.0 360.0
Free cash flow 120.0 132.0 144.0
Question 7
Calculate the enterprise value for the below company,
Calculate the growth rate implied by the Terminal Value (based on EBITDA multiple
Assume cash flows fall at the middle of each year.
Year 1.0 2.0 3.0
Sales 2,759.9 2,870.3 2,985.1
EBIT 402.0 414.0 430.5 447.8
Interest 24.8 25.8 26.9
Profit before tax 389.1 404.7 420.9
Tax expense 120.6 125.5 130.5
Net income 268.5 279.3 290.4
Depreciation 580.3 609.3 639.8 671.8
Capital expenditure 592.2 670.2 703.8 738.9
Long-term operating liabilities 253.8 269.0 285.2 302.3
Other long term op liabilities 361.8 372.7 383.8 395.3
Operating working capital 445.2 460.3 476.0 492.2
Clean effective tax rate 30.0% 30.0% 30.0% 30.0%
WACC 7.5%
Terminal value EBITDA multiple 7.0
Growth rate 3.46%
ll at the middle of each year. (Terminal value was calculated using the growing perpetuity method).
4.0 5.0
130.0 135.0
800.0
99.2 96.3 570.4
570.4 1,053.31
(EV)
alue per share 8.03
terminal value of fcf tv of fcf
2,554.6 2,554.6
tv of ebitda OR tv of ebitda
405.0 6,386.5
4.0 5.0 Implied EV/EBITDA implied ev/ebitda
390.0 405.0 6.31 0.4
156.0 162.0
1.0 2.0
NOPAT 289.8 301.4
4.0 Depreciation 609.3 639.8
Less Capex (670.2) (703.8)
3,104.5 inc(dec) long op liabilities 15.2 16.1
465.7 inc(dec) other long term lia 10.9 11.2
27.9 (inc)decOWC (15.1) (15.7)
437.7 FCFF 239.8 249.1
135.7 PV 223.07 215.53
302.0 Terminal Value
705.4
775.9 Sum of cf 848.1
320.4 PV of TV 5,148.8
407.2 EV 5,996.9
508.9
30.0%
3.0 4.0
313.4 326.0
671.8 705.4
(738.9) (775.9)
17.1 18.1
11.5 11.9
(16.2) (16.7)
258.7 268.7
208.24 201.20
6,876.10
