Company Valuation

Financial Model Template

Three Statement Model

Model Version
1.10

Worksheets

Instructions
Terms & Abbreviations
Assumptions
Executive Summary
Financial Stataments

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Confidential

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 Three Statement Model Model Version 1.1
Confidential

Instructions
1 Cell Colors

How to Work with this Model

Assumption Cells which contain the assumptions. Are not linked to any other cells.
Linked Assumption Cells which also contain assumptions but are linked to other assumption. Can either be left "as is" or overwritten if needed.
Link and calculations Cells which contain links or calculations. Should not be changed unless you want to change the logic of the model
Linked to cells in other sheets Cells which contains links from cells from other sheets

Terms & Abbreviations

2 Terms & Abbreviations

A Actual figure
CAPEX Capital Expenditures
COGS Cost of goods sold
DCF Discounted Free Cash Flows
D&A Depreciation & Amortization
EBIT Earnings before interest and taxes
EBITDA Earnings before interest, taxes, depreciation and amortization
EV Enteprise Value
F Forecasted figure
NPV Net Present Value
OPEX Operating costs
P/B Price to Book Ratio
P/E Price Earnings Ratio
ROA Return on Assets
ROE Return on Equity
ROIC Return on Invested Capital
t Tax rate %
TV Terminal Value
USD United States Dollar

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Assumptions
All amounts in USD Business Plan Assumptions
General Settings Income Statement 2021 A 2022 A 2023 A 2024 F 2025 F 2026 F 2027 F 2028 F
Year -Year 2 -Year 1 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Currency USD
Name Three Statement Model Revenues USD 4,100,000 4,500,000 5,000,000 5,500,000 5,830,000 6,179,800 6,550,588 6,943,623
Model Version 1.1 Revenue Growth % N/A 10% 11% 10.0% 6.0% 6.0% 6.0% 6.0%

Direct Costs USD (2,500,000) (2,700,000) (2,900,000) (3,080,000) (3,264,800) (3,460,688) (3,602,823) (3,818,993)
Timeline Gross Profit USD 1,600,000 1,800,000 2,100,000 2,420,000 2,565,200 2,719,112 2,947,765 3,124,630
Start of Operation Date 01-Jan-24 Gross Profit Margin % % 39.0% 40.0% 42.0% 44.0% 44.0% 44.0% 45.0% 45.0%
First Forecast Year Year 2024
OPEX USD (800,000) (950,000) (1,050,000) (1,350,000) (1,431,000) (1,516,860) (1,653,811) (1,735,906)
EBITDA USD 800,000 850,000 1,050,000 1,070,000 1,134,200 1,202,252 1,293,954 1,388,725
General Assumptions EBITDA Margin % % 19.5% 18.9% 21.0% 19.5% 19.5% 19.5% 19.8% 20.0%
Depreciation period Years 10
Interest rate % 2.0% Depreciation USD (200,000) (200,000) (220,000) (240,000) (270,000) (300,000) (330,000) (355,000)
Income Tax rate % 25.0% Extraordinary Expenses USD (220,000) (220,000) (220,000) - - - - -
Dividend Payout Ratio % 0.0% Interest Expense USD (36,500) (36,500) (36,500) (27,000) (21,000) (15,000) (9,000) (3,000)
Income Taxes USD (85,875) (98,375) (143,375) (200,750) (210,800) (221,813) (238,738) (257,681)
Net Income USD 257,625 295,125 430,125 602,250 632,400 665,439 716,215 773,043
Net Working Capital Net Income Margin % % 6.3% 6.6% 8.6% 10.9% 10.8% 10.8% 10.9% 11.1%
Days Receivables Days Sales 30
Days Inventory Days COGS 50
Days Payables Days COGS 45
Balance Sheet 2021 A 2022 A 2023 A 2024 F 2025 F 2026 F 2027 F 2028 F
Year -Year 2 -Year 1 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Model Checks Cash USD 300,000 395,125 355,250 563,253 835,999 1,170,004 1,633,796 2,176,574
Receivables USD 450,000 450,000 450,000 452,055 479,178 507,929 538,404 570,709
Business Plan Assumptions 0 Inventory USD 350,000 350,000 350,000 421,918 447,233 474,067 493,537 523,150
Executive Summary 0 Other Current Assets USD 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Financials 0 Fixed Assets USD 1,900,000 2,000,000 2,400,000 2,460,000 2,490,000 2,490,000 2,410,000 2,305,000
Assets USD 3,020,000 3,215,125 3,575,250 3,917,226 4,272,410 4,661,999 5,095,738 5,595,433

Payables USD 340,000 340,000 340,000 379,726 402,510 426,660 444,184 470,835
Other Current Liabilities USD 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Financial debt USD 1,250,000 1,350,000 1,500,000 1,200,000 900,000 600,000 300,000 -
Equity USD 1,420,000 1,515,125 1,725,250 2,327,500 2,959,900 3,625,339 4,341,554 5,114,598
Liabilities & Shareholder's Equity USD 3,020,000 3,215,125 3,575,250 3,917,226 4,272,410 4,661,999 5,095,738 5,595,433

Capex and Financial Debt 2021 A 2022 A 2023 A 2024 F 2025 F 2026 F 2027 F 2028 F
Year -Year 2 -Year 1 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

CAPEX USD 300,000 300,000 300,000 250,000 250,000

Change in Financial debt USD 100,000 150,000 (300,000) (300,000) (300,000) (300,000) (300,000)

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Executive Summary
All amounts in USD
Income Statement Balance Sheet
USD % of Revenue USD x
8,000,000 21.5% 6,000,000 2.0x

1.8x 1.8x
7,000,000 21.0%
21.0% 5,000,000
1.6x
6,000,000
1.4x 1.4x
20.5% 4,000,000
5,000,000
1.2x
20.0% 1.0x
4,000,000 20.0% 3,000,000 1.0x
19.8%
0.8x
3,000,000 19.5% 19.5% 19.5% 19.5% 2,000,000 0.7x
0.6x
2,000,000
0.4x
19.0% 1,000,000 0.3x
1,000,000
0.2x

- 18.5% - 0.0x 0.0x

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Revenues Gross Profit EBITDA EBITDA Margin % Financial debt Assets Cash Financial Debt/EBITDA

Cash Flow Statement Financial Ratios

USD x %
2,500,000 8.0x 35%

2,000,000 7.0x 30%

6.0x
1,500,000 25%
5.0x
1,000,000 20%
4.0x
500,000
15%
3.0x
-
10%
2.0x
(500,000)
1.0x 5%

(1,000,000)
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 0.0x 0%
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Quick Ratio Current Ratio ROE

Cash Cash Flow from Investments Cash Flow from Financing Cash Flow from Operations Change in Cash

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Financial Stataments
All amounts in USD
1 Income Statement Unit 2021 A 2022 A 2023 A 2024 F 2025 F 2026 F 2027 F 2028 F
Year -Year 2 -Year 1 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Revenues USD 4,100,000 4,500,000 5,000,000 5,500,000 5,830,000 6,179,800 6,550,588 6,943,623
Revenue Growth % N/A 9.8% 11.1% 10.0% 6.0% 6.0% 6.0% 6.0%

Direct Costs USD (2,500,000) (2,700,000) (2,900,000) (3,080,000) (3,264,800) (3,460,688) (3,602,823) (3,818,993)
Gross Profit USD 1,600,000 1,800,000 2,100,000 2,420,000 2,565,200 2,719,112 2,947,765 3,124,630
Gross Profit Margin % % of Revenue 39.0% 40.0% 42.0% 44.0% 44.0% 44.0% 45.0% 45.0%

OPEX USD (800,000) (950,000) (1,050,000) (1,350,000) (1,431,000) (1,516,860) (1,653,811) (1,735,906)
EBITDA USD 800,000 850,000 1,050,000 1,070,000 1,134,200 1,202,252 1,293,954 1,388,725
EBITDA Margin % % of Revenue 19.5% 18.9% 21.0% 19.5% 19.5% 19.5% 19.8% 20.0%

Depreciation USD (200,000) (200,000) (220,000) (240,000) (270,000) (300,000) (330,000) (355,000)
EBIT USD 600,000 650,000 830,000 830,000 864,200 902,252 963,954 1,033,725
EBIT Margin % % of Revenue 14.6% 14.4% 16.6% 15.1% 14.8% 14.6% 14.7% 14.9%

Extraordinary Expenses USD (220,000) (220,000) (220,000) - - - - -

Interest Expense USD (36,500) (36,500) (36,500) (27,000) (21,000) (15,000) (9,000) (3,000)
EBT USD 343,500 393,500 573,500 803,000 843,200 887,252 954,954 1,030,725
EBT Margin % % of Revenue 8.4% 8.7% 11.5% 14.6% 14.5% 14.4% 14.6% 14.8%

Income Taxes USD (85,875) (98,375) (143,375) (200,750) (210,800) (221,813) (238,738) (257,681)
Net Income USD 257,625 295,125 430,125 602,250 632,400 665,439 716,215 773,043
Net Income Margin % % of Revenue 6.3% 6.6% 8.6% 10.9% 10.8% 10.8% 10.9% 11.1%

All amounts in USD

2 Balance Sheet Unit 2021 A 2022 A 2023 A 2024 F 2025 F 2026 F 2027 F 2028 F
Year -Year 2 -Year 1 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Cash USD 300,000 395,125 355,250 563,253 835,999 1,170,004 1,633,796 2,176,574
Receivables USD 450,000 450,000 450,000 452,055 479,178 507,929 538,404 570,709
Inventory USD 350,000 350,000 350,000 421,918 447,233 474,067 493,537 523,150
Other Current Assets USD 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Fixed Assets USD 1,900,000 2,000,000 2,400,000 2,460,000 2,490,000 2,490,000 2,410,000 2,305,000
Assets USD 3,020,000 3,215,125 3,575,250 3,917,226 4,272,410 4,661,999 5,095,738 5,595,433

Payables USD 340,000 340,000 340,000 379,726 402,510 426,660 444,184 470,835
Other Current Liabilities USD 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Financial debt USD 1,250,000 1,350,000 1,500,000 1,200,000 900,000 600,000 300,000 -
Equity USD 1,420,000 1,515,125 1,725,250 2,327,500 2,959,900 3,625,339 4,341,554 5,114,598
Liabilities & Shareholder's Equity USD 3,020,000 3,215,125 3,575,250 3,917,226 4,272,410 4,661,999 5,095,738 5,595,433
Check 0 0 0 0 0 0 0 0

All amounts in USD

3 Fixed Asset Schedule Unit 2021 A 2022 A 2023 A 2024 F 2025 F 2026 F 2027 F 2028 F
Year -Year 2 -Year 1 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Depreciation period Years 10

CAPEX USD 300,000 620,000 300,000 300,000 300,000 250,000 250,000

Fixed Assets (Gross) 2,400,000 2,700,000 3,000,000 3,300,000 3,550,000 3,800,000

Depreciation
Year 0 USD 2,400,000 240,000 240,000 240,000 240,000 240,000
Year 1 USD 300,000 30,000 30,000 30,000 30,000
Year 2 USD 300,000 30,000 30,000 30,000
Year 3 USD 300,000 30,000 30,000
Year 4 USD 250,000 25,000
Normalization adjustment USD
Depreciation USD 240,000 270,000 300,000 330,000 355,000

Accumulated Depreciation USD - 240,000 510,000 810,000 1,140,000 1,495,000

Fixed Assets USD 2,400,000 2,460,000 2,490,000 2,490,000 2,410,000 2,305,000

 All amounts in USD
4 Cash Flow Statement Unit 2021 A 2022 A 2023 A 2024 F 2025 F 2026 F 2027 F 2028 F
Year -Year 2 -Year 1 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Cash Flow from Operations

Net Income USD 257,625 295,125 430,125 602,250 632,400 665,439 716,215 773,043
Depreciation USD - - - 240,000 270,000 300,000 330,000 355,000
Change in Receivables USD (450,000) - - (2,055) (27,123) (28,751) (30,476) (32,304)
Change in Inventory USD (350,000) - - (71,918) (25,315) (26,834) (19,471) (29,612)
Change in Other Current Assets USD (20,000) - - - - - - -
Change in Payables USD 340,000 - - 39,726 22,784 24,151 17,524 26,651
Change in Other Current Liabilities USD 10,000 - - - - - - -
Cash Flow from Operations USD (212,375) 295,125 430,125 808,003 872,745 934,005 1,013,793 1,092,778

Investing Cash Flow

CAPEX USD - (300,000) (620,000) (300,000) (300,000) (300,000) (250,000) (250,000)
Cash Flow from Investments USD - (300,000) (620,000) (300,000) (300,000) (300,000) (250,000) (250,000)

Cash Flow from Financing

Change in Financial debt USD - 100,000 150,000 (300,000) (300,000) (300,000) (300,000) (300,000)
Dividends USD - - - - - - - -
Cash Flow from Financing USD - 100,000 150,000 (300,000) (300,000) (300,000) (300,000) (300,000)

Cash Beginning USD 512,375 300,000 395,125 355,250 563,253 835,999 1,170,004 1,633,796
Change in Cash USD (212,375) 95,125 (39,875) 208,003 272,745 334,005 463,793 542,778
Cash End USD 300,000 395,125 355,250 563,253 835,999 1,170,004 1,633,796 2,176,574

Key Financial Ratios

All amounts in USD
5 Financial Ratios Unit 2021 A 2022 A 2023 A 2024 F 2025 F 2026 F 2027 F 2028 F
Year -Year 2 -Year 1 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Bank Ratios
Financial Debt/EBITDA x 2.1x 2.1x 1.8x 1.4x 1.0x 0.7x 0.3x 0.0x
Interest Coverage x 16.4x 17.8x 22.7x 30.7x 41.2x 60.2x 107.1x 344.6x
Debt Service Coverage x 0.2x 0.2x 0.3x 0.5x 0.7x 1.1x 2.4x NA

Liquidity Ratios
Cash Ratio x 0.9x 1.1x 1.0x 1.4x 2.0x 2.7x 3.6x 4.5x
Quick Ratio x 2.1x 2.4x 2.3x 2.6x 3.2x 3.8x 4.8x 5.7x
Current Ratio x 3.2x 3.5x 3.4x 3.7x 4.3x 5.0x 5.9x 6.8x

Growth Rates
Revenue growth % NA 9.8% 11.1% 10.0% 6.0% 6.0% 6.0% 6.0%
Gross Profit Growth % NA 12.5% 16.7% 15.2% 6.0% 6.0% 8.4% 6.0%
EBITDA Growth % NA 6.3% 23.5% 1.9% 6.0% 6.0% 7.6% 7.3%
EBIT Growth % NA 8.3% 27.7% 0.0% 4.1% 4.4% 6.8% 7.2%

Profitability
ROE % 18% 20% 27% 30% 24% 20% 18% 16%
ROA % 0.1x 0.1x 0.1x 0.2x 0.2x 0.2x 0.1x 0.1x

Revenues/Assets x 1.4x 1.4x 1.4x 1.4x 1.4x 1.3x 1.3x 1.2x

Efficiency
Days Receivables Days 40 37 33 30 30 30 30 30
Days Payables Days 50 46 43 45 45 45 45 45
Days Inventory Days 51 47 44 50 50 50 50 50
Cash Conversion Days 90 82 76 75 75 75 75 75

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