excel for chapter 6 mckinsey

excel for chapter 6 mckinsey - Enterprise Discounted Cash...

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Enterprise Discounted Cash Flow Model Valuation -- Koller Goedhart Wessels -- Chapter 6 Poulsen -- FINA 4210 Exhibit 6.4 Home Depot: Enterprise DCF Valuation Forecast year ($ million) (@8.5%) ($ million) 2009 5,909 0.922 5,448 2010 2,368 0.850 2,013 2011 1,921 0.784 1,506 2012 2,261 0.723 1,634 2013 2,854 0.666 1,901 2014 3,074 0.614 1,888 2015 3,308 0.566 1,874 2016 3,544 0.522 1,851 2017 3,783 0.481 1,821 2018 4,022 0.444 1,785 Continuing value (as of 2018) 92,239 0.444 40,944 Present value of cash flow 62,665 Midyear adjustment factor 1.041 Value of operations 65,263 Value of excess cash - Value of long-term investments 361 Value of tax loss carry-forwards 112 Enterprise value 65,736 Less: Value of debt (11,434) Less: Value of capitalized operating leases (8,298) Equity value 46,004 Number of shares outstanding (December 2008) (1000*million) 1.70 Equity value per share $27.06 Slight difference from book due to rounding errors (on their part!). Free cash flow Discount factor Present value of FCF
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Enterprise Discounted Cash Flow Model Valuation -- Koller Goedhart Wessels -- Chapter 6 Poulsen -- FINA 4210 Exhibit 6.5 Home Depot and Lowe's: Historical ROIC Analysis $ million Home Depot Lowe's 2006 2007 2008 2006 2007 2008 Net sales 90,837 77,349 71,288 46,927 48,283 48,230 Cost of merchandise sold (61,054) (51,352) (47,298) (30,729) (31,556) (31,729) Selling, general, and administrative (18,348) (17,053) (17,846) (9,884) (10,656) (11,176) Depreciation (1,645) (1,693) (1,785) (1,162) (1,366) (1,539) Add: Operating lease interest 441 536 486 185 169 199 Adjusted EBITA 10,231 7,787 4,845 5,337 4,874 3,985 Operating cash taxes (3,986) (3,331) (1,811) (2,071) (1,973) (1,496) NOPLAT 6,245 4,456 3,034 3,266 2,901 2,489 Invested capital Operating working capital 4,556 3,490 3,490 1,725 1,792 2,084 Net property and equipment 26,605 27,476 26,234 18,971 21,361 22,722 Capitalized operating leases 9,141 7,878 8,298 3,034 3,528 3,913 Other operating assets, net of operating liabilities (1,027) (1,635) (2,129) (126) (461) (450) 39,275 37,209 35,893
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excel for chapter 6 mckinsey - Enterprise Discounted Cash...

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