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Current 1 2 3 4 5 6 7 8 9 10: Year Revenues Change in Revenue Sales/Capital Ratio Reinvestment Capital Invested

The document contains financial information for a company over 10 years including revenues, capital invested, operating income, and cash flows. It then provides calculations to value the company using a discounted cash flow model. It models a high growth period for the first 5 years with revenues growing over 11% annually and high reinvestment rates. It then models a transition to stable growth of 3.41% annually. It calculates the net present value of the growth period cash flows and the terminal value to determine the total current value of the company is 32,696 units of local currency.

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Fırat Şık
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47 views5 pages

Current 1 2 3 4 5 6 7 8 9 10: Year Revenues Change in Revenue Sales/Capital Ratio Reinvestment Capital Invested

The document contains financial information for a company over 10 years including revenues, capital invested, operating income, and cash flows. It then provides calculations to value the company using a discounted cash flow model. It models a high growth period for the first 5 years with revenues growing over 11% annually and high reinvestment rates. It then models a transition to stable growth of 3.41% annually. It calculates the net present value of the growth period cash flows and the terminal value to determine the total current value of the company is 32,696 units of local currency.

Uploaded by

Fırat Şık
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
Download as xlsx, pdf, or txt
Download as xlsx, pdf, or txt
You are on page 1/ 5

Raw Input Calculated

Year Revenues Change in Revenue Sales/Capital Ratio Reinvestment Capital Invested


Current $187 $1,657
1 $562 $375 1.50 $250 $1,907
2 $1,125 $563 1.50 $375 $2,282
3 $2,025 $900 1.50 $600 $2,882
4 $3,239 $1,214 1.50 $809 $3,692
5 $4,535 $1,296 1.50 $864 $4,556
6 $5,669 $1,134 1.50 $756 $5,312
7 $6,803 $1,134 1.50 $756 $6,068
8 $7,823 $1,020 1.50 $680 $6,748
9 $8,605 $782 1.50 $521 $7,269
10 $9,035 $430 1.50 $287 $7,556

From Industry Average


Operating Income Imputed RoC
-$787
-$1,125 -67.9%
-$1,012 -53.1%
-$708 -31.0%
-$243 -8.4%
$284 7.7%
$744 16.3%
$1,127 21.2%
$1,430 23.6%
$1,647 24.4%
$1,768 24.3%
High Growth Period
Current Cashflow to Firm Year 1 2
EBIT (1-t) $1,414 Growth Rate 11.44% 11.44%
- Nt CpX $831 Reinvestment Rate 57.43% 57.43%
- Chg WC -$19 EBIT $2,483 $2,767
- FCFF $602 EBIT (1-t) $1,576 $1,756
Reinvestment Amount $812 - Reinvestment $905 $1,009
Reinvestment Rate 57.43% = FCFF $671 $748

Cash $3,016 Unlevered β for Sectors 1.25


Equity $34,656 Levered β for Firm 1.26
Debt $558
Riskfree Rate for Euro 3.41%
Corporate Tax Rate 36.54% Company Risk Premium 4.00%
Country Risk Premium 0.25%
Stable Growth Conditions
Growth Rate 3.41% Total Risk Premium 4.25%
β 1.00
Debt Ratio 20% Cost of Equity 8.78%
Cost of Capital 6.62%
RoC 6.62% Credit Default Spread 0.35%
Tax Rate 35% Cost of Debt 3.76%
Reinvestment Rate 52%
WACC 8.64%

RoC in Emerging Markets 19.93% Expected Growth Rate 11.44%


High Growth Period Growth Period inclining to Stable Growth
3 4 5 6 7 8 9 10
11.44% 11.44% 11.44% 9.84% 8.23% 6.62% 5.02% 3.41%
57.43% 57.43% 57.43% 56.25% 55.07% 53.89% 52.72% 51.54%
$3,084 $3,437 $3,830 $4,207 $4,554 $4,855 $5,099 $5,273
$1,957 $2,181 $2,431 $2,670 $2,890 $3,081 $3,236 $3,346
$1,124 $1,253 $1,396 $1,502 $1,591 $1,661 $1,706 $1,725
$833 $929 $1,035 $1,168 $1,298 $1,421 $1,530 $1,621
=FCFt+1 * (1+g) / (r-g)
Terminal Value
$52,289

NPV of Growth Period: 6,854 ₺

NPV of Terminal Value: 25,842 ₺

Total Current Value: 32,696 ₺

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