Enterprise value

LTM
Dilution
Multiples
Valuation
Why meger is done?
A basic merger model
Real deal(Meger that actually happned)
Projection of Target FS
Projection of Buyers FS
PPA-Goodwill caluation
Creating initial financial of merger company
Synergies
Projection of Merged FS
EV- Market value of all the capital INVESTED in business
EV- Acq value to the acquiring company

EV calcuation
1 Equity value MV MP/Sh*(No. of DILUTED shared o/s)
2 (+)Debt MV~BV Short term debt+Long term debt
3 (+) Capitalied value of Lease MV
4 (+) Unfunded Pension obligation (After t MV
5 (+)Preference shares MV~BV
6 (+)Non-Controlling interest MV~BV
7 (-)Cash MV/BV
8 (-)Net operating losses MV~BV
9 (-)Non operating Assets
Investments MV~BV
Assets held for sale MV~BV
EV

All data except per share data in $ Million

Enterprise value
Name of company The Coca-Cola Company
Ticker NYSE:KO
Date 25-Mar-24
Marginal tax rate 21.0%

Particulars Amount
Equity value
CMP $ 60.4
No. of shares basic outstanding $ 4,312.5
Add: Dilution $ -
No. of shares diluted outstanding $ 4,312.5 $ 260,472.4
(+)Debt
Loans and Notes payable $ 4,557.0
Current maturities of long-term debt $ 1,960.0
Long term debt $ 35,547.0 $ 42,064.0
(+) Unfunded pension and other obligation (Post tax)
Pension Obligation $ (565.6)
Other retirement benefits $ 95.6 $ (470.0)
(+) Capitalisation of lease $ 1,362.0
(+) Preference shares $ -
(+) Non-Controlling interest
Book value $ 1,539.0
Price/BV multiple $ 10.0 $ 15,451.6
(-) Cash and cash equivalents $ (9,366.0)
(-) Non operating assets
Investments
Short-term investments $ 2,997.0
Marketable securities $ 1,300.0
Equity method investments $ 19,671.0
Other investments $ 118.0
Other noncurrent assets $ 1,805.0
Net assets held for sale
Other noncurrent assets $ 1,375.0 $ (27,266.0)
Enterprise value $ 282,247.9

Page 24,8k, Feb 2024

Key Financials
Reported Sales
Add/Less: Non Operating/Exceptional items reported in Sales
Adjusted Sales
Reported operating Income (EBIT)
Add/Less: Non Operating/Exceptional items reported before EBIT
Adjusted EBIT
Add: Depreciation and Amortization
Adjusted EBITDA

Reported Net Income

Add/Less: Non Operating/Exceptional items reported before EBIT
Add/Less: Non Operating/Exceptional items reported after EBIT
Less: Tax adjustment
Add/Less: Other adjustment
Adjusted Net income
Less: Share of NCI
Add/Less: Non Operating/Exceptional items reported in NCI
Adjusted Earnings available to equity share holders
Dilutive Share Outstaning
Adj EPS
1st Pred is MV over BV

EV (Latest) $ 282,247.9 25-Mar-24

EBIT (Latest) 11311 12/31/2023

EV /EBIT 25.0
 Annual
45,754.0
30.0
45,784.0
11,311.0
2,025.0
13,336.0
1,128.0
14,464.0

10,703.0
2,025.0 PAT 11,649.0
(574.0) Add Income tax 2737
(488.0) PBT 14,386.0
(17.0)
11,649.0 Tax rate 19.0%
11.0
-
11,660.0
4,339
2.69
All data except per share data in $ Million

Enterprise value
Name of company The Coca-Cola Company
Ticker NYSE:KO
Date 25-Mar-24
Marginal tax rate 21.0%

Particulars
Equity value
CMP $ 60.4
No. of shares basic outstanding 4,312.5
Add: Dilution 15.5
No. of shares diluted outstanding $ 4,328.0
(+)Debt
Loans and Notes payable $ 4,557.0
Current maturities of long-term debt $ 1,960.0
Long term debt $ 35,547.0
(+) Unfunded pension and other obligation (Post tax)
Pension Obligation $ (565.6)
Other retirement benefits $ 95.6
(+) Capitalisation of lease
(+) Preference shares
(+) Non-Controlling interest
Book value $ 1,539.0
Price/BV multiple $ 10.0
(-) Cash and cash equivalents
(-) Non operating assets
Investments
Short-term investments $ 2,997.0
Marketable securities $ 1,300.0
Equity method investments $ 19,671.0
Other investments $ 118.0
Other noncurrent assets $ 1,805.0
Net assets held for sale
Other noncurrent assets $ 1,375.0
Enterprise value

Dilution calcuation- Treasury stock method

Particulars No. of shares outstanding Exercise Price CMP

ESOP 46.0 $ 48.4 $ 60.4
PSU 2.9 - 60.4
RSU 3.5 - 60.4
Total
 Amount

$ 261,408.6

$ 42,064.0

$ (470.0)
$ 1,362.0
$ -

$ 15,451.6
$ (9,366.0)

$ (27,266.0)
$ 283,184.1

All data except per share data in $ Million

ITM? Shares issued Cash received Net dilution

ITM 46.0 $ 2,225.5 9.2
ITM 2.9 $ - 2.9
ITM 3.5 $ - 3.5
15.5
Multiples Common unit of measure
A B
Land 4500000 6000000
FLAT 2500000 3500000
Size of Flat 4000 7200 625 486.1111
Size 5000 9000
Rate per Sq Ft 900.00 666.67 <<<<<<< Multiple

EV /Sales
 P&L
A
Sales 50000
EBITDA 20000
DA 15000
EBIT 5000
Less Int 4000
 PBT 1000
Tax 1000
Impacted by Capital >>>>> NP 0
Structure
 Capital intensive
BS A B
B Assets
50000 Mach 100000 100000
20000 CA 25000 25000
5000
15000 125000 125000
4000
 11000 EQ/LIAB
4000 Eq 25000 25000
7000 Loan@4% 100000 100000
125000 125000
0 0
 ###

10K
LTM Sales 1/10/2022-30-09-2023
2023, Annual sales 383,285
Q1,2024 119,575
Q1,2023 117,154
LTM sales 385,706

LTM figure
Annual data
(+)Latest YTD
(-) Last year Corresponding period

LTM EBIT
Valuation date 8/8/2023
Coca-Cola Annual EBIT ___M EBIT

Annual CY 6M YTD PY 6M YTD LTM

Pepsi 11512 6288 7344 10456
Apple
___M EBIT of LY
 LTM-A LTM-B
Sales 5000 8000
COGS 1000 1800
GP 4000 6200

SGA 100 500

Insurance 100 150
Comission 300 1500
Mics 1200 350

OE 1700 2500
 EBITDA 2300 3700
Dep 500 800
EBIT 1800 2900
Int 50 200
PBT 1750 2700
tax@20% 350 540
PAT 1400 2160

EV 28000 40000
EV/EBITDA 12.17 10.81
EBITDA 2300 3700
Add: Impai 900 0
Adj EBITDA 3200 3700

8.75 10.810810810811

Company PEP
Date of Vaulation 8/8/2023
EV $ 200,000 Million
EQ $ 130,000 Million
Page 46/60, 10K 20Page 2/46,10Q2,2023
Key Financials Annual CY 6M YTD
Reported Sales 86,392.0 40,168.0
Add/Less: Non Operating/Exceptional items reported in Sales - -
Adjusted Sales 86,392.0 40,168.0
Reported operating Income (EBIT) 11,512.0 6,288.0
Add/Less: Non Operating/Exceptional items reported before EBIT 813.0 373.0
Adjusted EBIT 12,325.0 6,661.0
Add: Depreciation and Amortization 2,763.0 1,268.0
Adjusted EBITDA 15,088.0 7,929.0

Reported Net Income 8,978.0 4,715.0

Add/Less: Non Operating/Exceptional items reported before EBIT 813.0 373.0
Add/Less: Non Operating/Exceptional items reported after EBIT 344.0 (1.0)
Less: Tax adjustment (645.0) (88.0)
Adjusted Net income
Less: Share of NCI (68.0) (35.0)
Add/Less: Non Operating/Exceptional items reported in NCI (1.0) (1.0)
Adjusted Earnings available to equity share holders 9,421.0 4,963.0
Dilutive Share Outstaning 1,387 1,384
Adj EPS 6.79 3.59
 Mics 900 Impairment oif goodwill
Office expenses 300 350
 Unadjusted Adjusted
EV/LTM Sales 2.2x 2.2x
EV/LTM EBIT 19.1x 15.2x
46,10Q2,2023 EV/LTM EBITDA 15.0x 12.5x
PY 6M YTD LTM PE 13.0x
36,425.0 90,135.0
- - EBIT 500.00 500
36,425.0 90,135.0 9,563.89 7583.801 1,980.09
7,344.0 10,456.0
(1,544.0)
5,800.0 13,186.0
1,195.0 2,836.0
6,995.0 16,022.0

5,719.0 7,974.0
(1,544.0)
124.0
109.0

(29.0)
(1.0)
4,378.0 10,006.0
1,390
3.15 7.23
EV/ 1Y FWD Sales
EV/1Y FWD EBIT
EV/1Y FWD EBITDA
P/1Y FWD Earnings
 A
CMP 10.00 CMP
Shares outstanding Dilutive 100.00 Shares outstanding Dilutive
Equity value (before transaction) 1,000.00 Equity value (before transact

PBT 500.00 PBT

Buyer tax rate 30% Target tax rate
PAT 350.00 PAT
EPS of Buyer 3.50 EPS
Purchase premium 20%
Purchase price per share 6.00 Yield
Accretive
Transaction value 240.00
Particluars
% Cash 0.00% Cash
% Debt 0.00% Debt
% Stock 100.00% Stock
Total 100.00%
No. of shares issued
Weighted average cost
Yield of Company B
Deal is accretive/(dilutive)
Premi
Particulars 0% 10.0% 20.0% 30.0%

Transaction value 200.00 220.00 240.00 260.00

Cash used - - - -
Debt used - - - -
Stock used 200.00 220.00 240.00 260.00
Check - - - -
No.of shares issued 20 22 24 26

Total shares o/s of combined company 120 122 124 126

Pre tax income of "A" 500.00 500.00 500.00 500.00

Pre tax income of "B" 160.00 160.00 160.00 160.00
Interest on cash foregone - - - -
Interest on loan - - - -
Synergies 8 8 8 8
Pre tax income of combined company 668.00 668.00 668.00 668.00
Less: Income tax (200.40) (200.40) (200.40) (200.40)
Post tax income of combined company 467.60 467.60 467.60 467.60
EPS of combined company 3.90 3.83 3.77 3.71
EPS of Standalone buyer 3.50 3.50 3.50 3.50
Accertion/(Dilution) 0.40 0.33 0.27 0.21
Accertion%/(Dilution)% 11% 10% 8% 6%
 B A is Acq B
5.00
40.00
200.00

160.00
30%
112.00
2.8
A B
35% 56.0%

Amount Pre tax cost Buyer tax Post tax cost

$ - 4% 30% 2.800%
$ - 12% 30% 8.400%
$ 240.00 35.00%

24.00
35.00% Go away
56.00% Come
Accretive
Premium paid
40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

280.00 300.00 320.00 340.00 360.00 380.00 400.00

- - - - - - -
- - - - - - -
280.00 300.00 320.00 340.00 360.00 380.00 400.00
- - - - - - -
28 30 32 34 36 38 40

128 130 132 134 136 138 140

500.00 500.00 500.00 500.00 500.00 500.00 500.00

160.00 160.00 160.00 160.00 160.00 160.00 160.00
- - - - - - -
- - - - - - -
8 8 8 8 8 8 8
668.00 668.00 668.00 668.00 668.00 668.00 668.00
(200.40) (200.40) (200.40) (200.40) (200.40) (200.40) (200.40)
467.60 467.60 467.60 467.60 467.60 467.60 467.60
3.65 3.60 3.54 3.49 3.44 3.39 3.34
3.50 3.50 3.50 3.50 3.50 3.50 3.50
0.15 0.10 0.04 (0.01) (0.06) (0.11) (0.16)
4% 3% 1% 0% -2% -3% -5%