Discounted Cash Flow Valuation

Discounted Cash Flow Valuation - 14,473 Net working capital...

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Discounted Cash Flow Valuation Assumptions Growth rate 4.0% WACC 10.0% Tax rate 35% Predicted % of sales Free Cash Flow 2009 Actual 2010 2011 2012 2013 2014 2015 20.00% 10.00% 10.00% 10.00% 10.00% 4.00% Sales $50,000 $60,000 $66,000 $72,600 $79,860 $87,846 $91,360 Cost of goods sold 35,000 42,000 46,200 50,820 55,902 61,492 63,952 70.00% Gross profit 15,000 18,000 19,800 21,780 23,958 26,354 27,408 3,000 3,600 3,960 4,356 4,792 5,271 5,482 6.00% Other income 200 240 250 280 300 320 340 Earnings before interest and taxes (EBIT) 12,200 14,640 16,090 17,704 19,466 21,403 22,266 Taxes (5,124) (5,632) (6,196) (6,813) (7,491) (7,793) Net operating profit after taxes (NOPAT) 9,516 10,459 11,508 12,653 13,912
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Unformatted text preview: 14,473 Net working capital 15,000 18,000 19,800 21,780 23,958 26,354 27,408 30.00% Net PPE 18,000 21,600 23,760 26,136 28,750 31,625 32,890 36.00% NOPAT 9,516 10,459 11,508 12,653 13,912 14,473 + Depreciation 1,450 1,740 1,914 2,105 2,316 2,548 2,649 8.06%- Capital expenditures (CAPEX) 5,340 4,074 4,481 4,930 5,422 3,914 - Increase in net WC 3,000 1,800 1,980 2,178 2,396 1,054 Free Cash Flow 2,916 6,499 7,152 7,862 8,641 12,154 Terminal value 202,567 Total Free Cash Flow $2,916 $6,499 $7,152 $7,862 $211,208 Enterprise value $149,908 Less debt $0 Equity value $149,908 Number of shares 3,000 Value per share (DCF) $49.97 Current price per share $39.00...
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This note was uploaded on 11/22/2011 for the course BUS 401 taught by Professor Terrywilson during the Spring '11 term at Solano Community College.

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