Valuation - Valuation DCF Model Steps 1 Calculate FCF 1...

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Valuation DCF Model Steps: 1. Calculate FCF: 1) NOPAT 2) Net operating working capital 3)Total net operating capital 4)Net investment in operating capital 2. Calculate the value of operations: sum of discounted cash flows 3. Add non-operating assets Non-constant growth model for years 2012-2014: Step 1: Calculate FCF 2012 2013 2014 1. Net operating working capital $31 311,00 $34 917,00 $42 208,00 2. Net plant and equipment 9 660,00 10 224,00 11 007,00 3. Net operating capital $40 971,00 $45 141,00 $53 215,00 4. Investment in operating capital $4 221,00 4 170,00 8 074,00 5. NOPAT $9 960,20 $9 829,28 $10 689,63 6. Less: Investment in op. capital $4 221,00 4 170,00 8 074,00 7. Free cash flow $5 739,20 $5 659,28 $2 615,63 Step 2: Calculate the value of operations Actual 2012 2013 2014 Long-term growth rate 5% Weighted Avg. Cost of Cap. (WACC) 9,64% Free Cash Flow $5 659,28 $2 615,63 Step 3. Discount and sum up FCFs Find the total value of the firm. Value of operations $52 247,33
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Plus: Value of nonoperating assets
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