valuedrivers - The Free Cash Flow Business Valuation Model...

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The Free Cash Flow Business Valuation Model Value Drivers: The Discounted Free Cash Flow Model for a Business Pie In the Sky Company Value Drivers (Forecasting Variables): 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Revenue growth factor 20% 30% 40% 50% 60% 50% 40% 30% 20% 10% Expected gross profit margin 50% 51% 52% 53% 54% 55% 56% 57% 58% 59% 50% 40% 30% 29% 28% 27% 26% 25% 24% 23% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% Capital expenditure growth factor 40% 35% 30% 25% 20% -10% -15% -20% -25% -30% Net working capital to sales ratio 19% 18% 17% 16% 15% 14% 13% 12% 11% 10% Income tax rate 40% 40% Assumed long-term sustainable growth rate 5% per year after 2015 5% Discount rate 20% 20% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Valuation Model Outputs: Gross profit margin 50% 51% 52% 53% 54% 55% 56% 57% 58% 59% Net operating profit margin -10% 1% 12% 9% 10% 11% 12% 13% 14% 16% Free cash flow ($ mil) ($1.3) ($1.4) ($1.2) ($1.4) ($0.9)
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This note was uploaded on 10/29/2009 for the course FINANCE 502 taught by Professor Gore during the Spring '09 term at Bahcesehir University.

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valuedrivers - The Free Cash Flow Business Valuation Model...

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