Earnings price value based on free cash flows price

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earnings Price Value based on free cash flows: Price Paid 5 2019 2020 9 11 12 13 14 EBIT EBIAT - Change in Working Capital - Change in PP&E Free Cash Flow Terminal Value Present Value PV of Free Cash Flows - Existing Debt = Present Value of SkyBlue 2021 Notes From Pro Formas - EBIT projection EBIT minus tax From Pro Formas (exclude Bank note plug!) From Pro Formas Calculation Assumes growth rate given Calculation Calculation Bank Loan + CPLT + LTD Calculated value 16 18 (Underpay)/Overpay for SkyBlue If negative, Apache Airlines paid less than SkyBlue is worth + Read 1st! , WACC Machine NPV - SkyBlue financials SkyBlue valuation Apache BS Consolidated
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Explore 0 7 :37 C Apache Airlines, A Privately Held x This case has the following road x M Inbox (936)[email protected] X t 5.2Problem Set - Google Sheets x + - 0 X E C docs.google.com/spreadsheets/d/15w4qdaCOP5rAxemVMZD Yr9RHvu2vcrbMS92hJn4Qy-w/edit#gid=96429444 Search the menus (Alt+/) ao 100% - $ % ._.00 123- Times New... - 12 BI . A . EE - D , . fx Income Statement K. M Actual 2018 DE Projected 2019 2020 2021 Notes 62 2 19 20 21 22 Income Statement Prepaid Current Assets Other Total Assets 1,950 1,250 3,200 Leave flat 250 24 25 26 See below Increase at average growth rate Leave flat Leave flat Bank Loan Payables CPLTD Other Current Liabilities LTD Equity Total Liabilities & Equity 375 500 2,325 LTD of previous year minus CPLTD of current year Equity of previous year plus net income of current year 30 31 3,200 Working Capital 1,825 Exclude Bank Loan 35 Note: the Bank Loan is a plug figu re. Its formula starts with total assets and subtracts the liability and equity accounts. If the Bank Loan number is positive, it is debt. If negative, it is basically cash. + E Read 1st! - WACC Machine NPV, SkyBlue financials, SkyBlue valuation, Apache BS, Consolidated Explore 17:37 C Apache Airlines, A Privately Held x This case has the following road x M Inbox (936)[email protected] X t 5.2Problem Set - Google Sheets x + - 0 X E C docs.google.com/spreadsheets/d/15w4qdaCOP5rAxemVMZD
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Yr9RHvu2vcrbMS92hJn4Qy-w/edit#gid=96429444 Search the menus (Alt+/) ao 100% - $ % ._.00 123- Times New... - 12 BI . A . EE - D , . fx Income Statement M 2 5 Income Statement Tax Rate Net Sales - Cost of Goods Sold (COGS) = Gross Profit - S,G & A Expenses = EBIT - Interest = EBT - Taxes = Net Income Balance Sheet Cash Notes and Acc. Rec. Inventory Actual 2018 21% 5,000 3,075 1,925 1,550 375 100 DE Projected 2019 2020 2021 Notes 21% 21% 21% Use current statutory rate of 21% Increase using the average growth rate Use same percent of Net Sales as in 2018 Calculation Use same percent of Net Sales as in 2018 Calculation (Use for Free Cash Flow valuation!) Hold at 2017 level Calculation Use implicit rate of 2018 Calculation 12 275 217 15 17 18 1,000 800 Increase at average growth rate 19 Prepaid 20 21 22 Current Assets Other Total Assets 1,950 1,250 3,200 Leave flat 250 24 25 Bank Loan Payables See below Increase at average growth rate + Read 1st! - WACC Machine NPV , SkyBlue financials, SkyBlue valuation Apache BS - Consolidated Explore 17:37 C Apache Airlines, A Privately Held x This case has the following road x M Inbox (936)[email protected] X t 5.2Problem Set - Google Sheets x + - OX f = c docs.google.com/spreadsheets/d/15w4qdaCOP5rAxemVMZD Y9RHvu2vcrbMS92hJn4Qy-w/edit#gid=204394851 5.2Problem Set File Edit View Insert Format Data Tools Add-ons Help A Share Last edit was 2 minutes ago na ? 100% , $ % ..00 123 Times New... - 12 - BI . A . BE - TH + UY.E K
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L M N O P Q R S B Start C Year 1 D Year 2 E Year 3 J Year 8
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