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F - Valuation template-POSTED - For Replicate WITHOUT FORMULAS

This document provides financial projections for a company over a 5 year period, including forecasts for sales, costs, profits, cash flows and valuation. Key information includes: - Sales are projected to increase annually by 3% for price and 10% for quantity. - Costs also increase by inflation rates of 3% annually for labor, materials and overhead. - Net income increases each year from $2.9M in year 1 to $8.5M in year 5. - Free cash flows range from $3.8M to $11.6M over the 5 years. - The company's equity value is estimated at $19.8M-$20.7M based on discounted cash

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Sunil Sharma
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67 views4 pages

F - Valuation template-POSTED - For Replicate WITHOUT FORMULAS

This document provides financial projections for a company over a 5 year period, including forecasts for sales, costs, profits, cash flows and valuation. Key information includes: - Sales are projected to increase annually by 3% for price and 10% for quantity. - Costs also increase by inflation rates of 3% annually for labor, materials and overhead. - Net income increases each year from $2.9M in year 1 to $8.5M in year 5. - Free cash flows range from $3.8M to $11.6M over the 5 years. - The company's equity value is estimated at $19.8M-$20.7M based on discounted cash

Uploaded by

Sunil Sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Company For replicating In Jen F

Inventory Turns 6.0 Required to calculate


Acct Rec turns 12.0 Working capital (reference
Act Payable turns 8.0 notes in Jen Inc Part F)

BASE YEAR
(CURRENT)
YEAR 0 1 2 3
Price growth rate 3.00%
Price Forecast 50.00 51.50 53.05 54.64
Quantity growth rate 10.00% 10.00% 10.00% 10.00%
Quantity Forecast 250,000.00 275,000.00 302,500.00 332,750.00

Direct labor- Inflation rate 3.00% 3.00% 3.00% 3.00%


Unit labor cost Forecast $ 8.00 $ 8.24 $ 8.49 $ 8.74
Labor inflation

Material inflation 3.00% 3.00% 3.00% 3.00%


Unit material cost $ 4.00 $ 4.12 $ 4.24 $ 4.37

Overall inflation 3.00% 3.00% 3.00% 3.00%

tax rate 25.0% 25.0% 25.0% 25.0%


DEBT $ 5,000,000.0 $ 5,000,000.0 $ 5,000,000.0 $ 5,000,000.0
Interest rate 7.00% 7.00% 7.00% 7.00%
YEAR 0 1 2 3
Sales $ 12,500,000 $ 14,162,500 $ 16,046,113 $ 18,180,245
labor cost $ 2,000,000 $ 2,266,000 $ 2,567,378 $ 2,908,839
material cost $ 1,000,000 $ 1,133,000 $ 1,283,689 $ 1,454,420
operations sal. and wages $ 1,000,000 $ 1,030,000 $ 1,060,900 $ 1,092,727
Depreciation $ 300,000 $ 300,000 $ 300,000 $ 300,000
Operations overhead $ 2,000,000 $ 2,060,000 $ 2,121,800 $ 2,185,454
Sub-Total COGS $ 6,300,000 $ 6,789,000 $ 7,333,767 $ 7,941,440
Gross Margin $ 6,200,000 $ 7,373,500 $ 8,712,346 $ 10,238,806
SG&A $ 1,500,000 $ 1,545,000 $ 1,591,350 $ 1,639,091
R&D $ 500,000 $ 515,000 $ 530,450 $ 546,364
EBIT $ 4,200,000 $ 5,313,500 $ 6,590,546 $ 8,053,352
Interest $ 350,000 $ 350,000 $ 350,000 $ 350,000
EBT $ 3,850,000 $ 4,963,500 $ 6,240,546 $ 7,703,352
Taxes $ 962,500 $ 1,240,875 $ 1,560,136 $ 1,925,838
Net Income $ 2,887,500 $ 3,722,625 $ 4,680,409 $ 5,777,514
EBIT x (1-tax rate) $ 3,150,000.0 $ 3,985,125.0 $ 4,942,909.1 $ 6,040,013.7

Ongoing capital Investments $ 300,000 $ 300,000 $ 300,000 $ 300,000


Inventory $ 1,050,000.00 $ 1,131,500.00 $ 1,222,294.50 $ 1,323,573.32
Acct Receivable $ 1,041,667 $ 1,180,208 $ 1,337,176 $ 1,515,020

Acct Payable(Note if Material


value available, use Material
value instead of COGS) $ 125,000.00 $ 141,625.00 $ 160,461.13 $ 181,802.45
Total Working Capital $ 1,966,667 $ 2,170,083 $ 2,399,009 $ 2,656,791

Change in Working Capital


(Note: First year is a base
year) 0 $ 203,417 $ 228,926 $ 257,782

FCF: EBIT X (1-tax rate) +


depreciation - capital
Investments - change in
working capital $ 3,150,000.0 $ 3,781,708.3 $ 4,713,983.0 $ 5,782,231.8

Discount rate (hurdle) 30.0%


Provided
growth rate beyond year 5 3.0% 5.0%

NPV for years 0 to year 5 $ 16,195,974.10 $ 16,195,974.10


Terminal value at year 5 $ 32,055,473.1 $ 35,292,142.3
PV of terminal value $ 8,633,470.9 $ 9,505,200.0 New Learning:
Enterprise value $ 24,829,445.0 $ 25,701,174.1
Debt $ 5,000,000.0 $ 5,000,000.0
Calculate Answers
EQUITY VALUE $ 19,829,445.0 $ 20,701,174.1
4 5

56.28 57.96
10.00% 10.00%
366,025.00 402,627.50

3.00% 3.00%
$ 9.00 $ 9.27

3.00% 3.00%
$ 4.50 $ 4.64

3.00% 3.00%

25.0% 25.0%
$ 5,000,000.0 $ 5,000,000.0
7.00% 7.00%
4 5
$ 20,598,218 $ 23,337,781
$ 3,295,715 $ 3,734,045
$ 1,647,857 $ 1,867,022
$ 1,125,509 $ 1,159,274
$ 300,000 $ 300,000
$ 2,251,018 $ 2,318,548
$ 8,620,099 $ 9,378,890 Prior learning
$ 11,978,119 $ 13,958,891
$ 1,688,263 $ 1,738,911
$ 562,754 $ 579,637
$ 9,727,102 $ 11,640,343
$ 350,000 $ 350,000
$ 9,377,102 $ 11,290,343
$ 2,344,275 $ 2,822,586
$ 7,032,826 $ 8,467,757
$ 7,295,326.3 $ 8,730,257.5

$ 300,000 $ 300,000
$ 1,436,683.13 $ 1,563,148.28 New Learning:
$ 1,716,518 $ 1,944,815
Calculate Answers

$ 205,982.18 $ 233,377.81
$ 2,947,219 $ 3,274,586

$ 290,428 $ 327,366

$ 7,004,898.5 $ 8,402,891.0

arning:
e Answers

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