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    Netscape

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    Anuj Bhatt
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    Netscape

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    Anuj Bhatt
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    Netscape

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    Netscape

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    59 views6 pages

    Netscape

    Uploaded by

    Anuj Bhatt
    Netscape

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 6

    Title: Netscape: Simulation Techniques for Company Valuation

    IESE code case: AD-351-E

    This spreadsheet supplements the case prepared by Professor Rafael de Santiago. May 2016.

    Copyright © 2016 IESE. To order copies contact IESE Publishing via www.iesep.com. Alternatively, write to iesep@ie
    or call +34 932 536 558. No part of this document may be reproduced, stored in a retrieval system, used in a spread
    transmitted in any form or by any means – electronic, mechanical, photocopying, recording, or otherwise – without
    natively, write to [email protected]
    al system, used in a spreadsheet, or
    ng, or otherwise – without the permission of IESE.
    Netscape Figures other than percentages are in thousands (except Beta and Price/share)

    Assumptions 1996 1997 1998 1999 2000 2001


    Revenue growth rate 65.00%
    Terminal value growth rate 4.00%
    Cost of sales (% revenues) 10.44%
    R&D (% revenues) 36.76%
    Tax rate 34.00%
    Other operating expenses (% revenues) 0.80 0.65 0.55 0.45 0.35 0.25
    Capital Expenditure (% revenues) 0.45 0.40 0.30 0.20 0.10 0.10
    Depreciation (% revenues) 5.50%
    Change in working capital 0.00%
    Beta (β) 1.50
    Risk-free rate 6.71%
    Market-risk premium 7.50%
    Discount rate 17.96%
    Shares outstanding 38,000

    Model
    1995 actual Forecast
    Revenues 33,250 54,863 90,523 149,363 246,449 406,641 670,958
    Cost of goods sold 3,471 5,728 9,451 15,594 25,729 42,453 70,048
    R&D expenses 12,223 20,167 33,276 54,906 90,595 149,481 246,644
    Depreciation 1,829 3,017 4,979 8,215 13,555 22,365 36,903
    Other operating expenses 26,898 43,890 58,840 82,150 110,902 142,324 167,739
    EBT -11,171 -17,940 -16,023 -11,501 5,668 50,017 149,624
    Taxes -3,798 -6,100 -5,448 -3,910 1,927 17,006 50,872
    Net Profit -7,373 -11,840 -10,575 -7,591 3,741 33,011 98,752

    Capital expenditure 15,236 24,688 36,209 44,809 49,290 40,664 67,096


    Change in working capital 0 0 0 0 0 0 0

    Free Cash Flow (FCF) -20,780 -33,511 -41,805 -44,185 -31,994 14,712 68,558
    Cumulative FCF -20,780 -54,291 -96,096 -140,281 -172,275 -157,563 -89,004
    Terminal value (TV) 5,008,313
    PV Free Cash Flow 243,199
    PV Terminal value 813,971

    Performance
    Total NPV 1,057,170
    Ratio TV/Total NPV 0.77
    Year FCF > 0 2002
    Max loss -172,275
    Price/share 27.82

    Auxiliary
    Zero out negatives 0 0 0 0 0 0 0
    Isolate first positive 0 0 0 0 0 0 1
    Calculate year first positive 0 0 0 0 0 0 2002
    ice/share)

    2002 2003 2004 2005

    0.20 0.20 0.20 0.20


    0.10 0.10 0.10 0.10

    1,107,081 1,826,683 3,014,027 4,973,145


    115,579 190,706 314,664 519,196
    406,963 671,489 1,107,956 1,828,128
    60,889 100,468 165,771 273,523
    221,416 365,337 602,805 994,629
    302,233 498,684 822,829 1,357,668
    102,759 169,553 279,762 461,607
    199,474 329,132 543,067 896,061

    110,708 182,668 301,403 497,314


    0 0 0 0

    149,655 246,931 407,436 672,270


    60,651 307,582 715,018 1,387,288

    60,651 307,582 715,018 1,387,288


    0 0 0 0
    0 0 0 0

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