Mercury Athletic (Student Templates) Final
Mercury Athletic (Student Templates) Final
Mercury Athletic (Student Templates) Final
2007
479,329
423,836
8,487
47,006
(18,802)
28,203
9,587
(4,568)
(11,983)
2008
489,028
427,333
8,659
53,036
(21,214)
31,822
9,781
(2,649)
(12,226)
2009
532,137
465,110
9,422
57,605
(23,042)
34,563
10,643
(9,805)
(13,303)
2010
570,319
498,535
10,098
61,686
(24,675)
37,012
11,406
(8,687)
(14,258)
2011
597,717
522,522
10,583
64,612
(25,845)
38,767
11,954
(6,233)
(14,943)
21,239
26,727
22,097
25,473
29,545
Equity
Market Value
420,098
533,463
165,560
35,303,250
570,684
1,056,033
397,709
5,492,400
Net
Debt
125,442
171,835
82,236
7,653,207
195,540
300,550
169,579
1,242,627
D/E
29.9%
32.2%
49.7%
21.7%
34.3%
28.5%
42.6%
34.1%
Equity
Beta
2.68
1.92
1.12
0.97
2.13
1.27
0.98
1.58
Asset
Beta
2.06
1.45
0.75
0.80
1.59
0.99
0.69
1.19
Assumptions:
Marginal Tax Rate
Debt Beta
40.0%
0.00
Risk-Free Rate
MRP
4.93%
5.00%
Cost of Debt
6.00%
Debt/
Equity
0.0%
5.3%
11.1%
17.6%
25.0%
33.3%
42.9%
53.8%
66.7%
81.8%
100.0%
122.2%
150.0%
Asset
Beta
1.19
1.19
1.19
1.19
1.19
1.19
1.19
1.19
1.19
1.19
1.19
1.19
1.19
Equity
Beta
1.19
1.25
1.32
1.40
1.49
1.59
1.70
1.83
1.98
2.16
2.38
2.64
2.97
Cost of
Equity
10.88%
11.19%
11.54%
11.92%
12.36%
12.86%
13.42%
14.08%
14.84%
15.74%
16.82%
18.14%
19.79%
Cost of
Debt (PT)
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
WACC
10.88%
10.81%
10.74%
10.68%
10.61%
10.54%
10.48%
10.41%
10.34%
10.28%
10.21%
10.14%
10.08%
2006 (t=0)
25,998
2007
28,203
9,587
(4,568)
(11,983)
21,239
0.904
19,201
2008
31,822
9,781
(2,649)
(12,226)
26,727
0.817
21,846
2009
34,563
10,643
(9,805)
(13,303)
22,097
0.739
16,329
2010
37,012
11,406
(8,687)
(14,258)
25,473
0.668
17,018
Sum, PV FCF
92,240
92,240
92,240
Terminal value
PV TV
388,003
211,877
388,003
211,877
388,003
211,877
Enterprise Value
304,117
304,117
304,117
223,586 (P/E)
NPV
80,531
(10,059)
2011
38,767
11,954
(6,233)
(14,943)
29,545
0.604
17,845
152,624 (EV/EBITDA)
151,493
Assume:
WACC
Growth rate
10.61%
2.78%
MERCURY ATHLETIC
Project:
Analysis:
Draft:
Footer:
MERCURY ATHLETIC
Terminal Value Growth Estimates
N
Harvard Business Publishing
2011
38,767
331,381
11.7%
9,222
38,767
23.8%
2.7829%
8.6
25,998
223,586
20,735
(10,676)
10,059
EV
Net Debt
Projected Acquisition Cost
304,117
(10,059)
314,175
EV/EBITDA
EV
EBITDA (2006)
EV/EBITDA multiple
X 2006 Earnings
Projected Acquisition Cost
304,117
51,804
6
25,998
152,624