Post on 04-Apr-2018
7/29/2019 Discounted Cash Flow Template
1/19
Fiscal
($ in millions) 2009 2010 2011 CAGR
Actual Actual Actual ('09-11')
Revenue -$ -$ -$ #DIV/0!
% Growth 0.0% 0.0% 0.0%
Direct costs of services - - -
Gross profit -$ -$ -$ #DIV/0!
Gross margin 0.0% 0.0% 0.0%
Selling, general and administrative expens - - -
0.0% 0.0% #DIV/0!
Depreciation and amortization - - -
Operating income -$ -$ -$ #DIV/0!
Operating Margin 0.0% 0.0% #DIV/0!
Interest expense (income) - - -
Cash Interest Rate 0.0% 0.0% 0.0%
Earnings before taxes - - -
Tax expense(1)
- - -
Net income -$ -$ -$ #DIV/0!
Supplemental Items
EBITDA -$ -$ -$Capex - - -
(1) Projected tax rate @ 40%
7/29/2019 Discounted Cash Flow Template
2/19
Year Ended December 31,
2012 2013 2014 2015 2016 CAGR
Projected Projected Projected Projected Projected ('12-'15)
-$ -$ -$ -$ -$ #DIV/0!
0.0% 0.0% 0.0% 0.0% 0.0%
- - - - -
-$ -$ -$ -$ -$ #DIV/0!
0.0% 0.0% 0.0% 0.0% 0.0%
- - - - -
#DIV/0! #DIV/0! #DIV/0! #DIV/0! 19.4%
- - - - -
-$ -$ -$ -$ -$ #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
- - - - -
0.0% 0.0% 0.0% 0.0% 0.0%
- - - - -
- - - - -
-$ -$ -$ -$ -$ #DIV/0!
-$ -$ -$ -$ -$- - - - -
7/29/2019 Discounted Cash Flow Template
3/19
($ in millions) Fiscal Year Ended December 31,
2009 % of 2010 % of 2011
Actual Sales Actual Sales Actual
CURRENT ASSETSExcess cash (plug)
Cash and cash equivalents -$ #DIV/0! -$ #DIV/0! -$
Accounts receivable, net - #DIV/0! - #DIV/0! -
Other current assets - #DIV/0! - #DIV/0! -
Total current assets - #DIV/0! - #DIV/0! -
LONG-TERM ASSETS
Fixed assets, net - #DIV/0! - #DIV/0! -
Other assets - #DIV/0! - #DIV/0! -
Total long-term assets - #DIV/0! - #DIV/0! -
Total assets -$ #DIV/0! -$ #DIV/0! -$
CURRENT LIABILITIES
Accounts payable -$ #DIV/0! -$ #DIV/0! -$
Accrued expenses - #DIV/0! - #DIV/0! -
Accrued payroll - #DIV/0! - #DIV/0! -
Total current liabilities - #DIV/0! - #DIV/0! -
LONG-TERM LIABILITIES
Long-term debt (plug)
Other liabilities - #DIV/0! - #DIV/0! -
Total long-term liabilities - #DIV/0! - #DIV/0! -
Total liabilities -$ #DIV/0! -$ #DIV/0! -$
Shareholders' equity -$ #DIV/0! -$ #DIV/0! -$
Total liabilities & shareholders' equ -$ #DIV/0! -$ #DIV/0! -$
Trial Liabilities
T
7/29/2019 Discounted Cash Flow Template
4/19
(Fiscal Year Ended December 31)
2009 2010 2011 2012 2013
Revenue $0.00 $0.00 $0.00 $0.00 $0.00
Cost of revenue - - - - -SG&A - - - - -
Current Assets
Accounts receivable, net - - - - -
Other current assets - - - - -
Total current assets - - - - -
Current Liabilities
Accounts payable -$ -$ -$ -$ -$
Accrued expenses - - - - -
Accrued payroll - - - #DIV/0! #DIV/0!Total current liabilities - - - #DIV/0! #DIV/0!
Net Working Capital - - - #DIV/0! #DIV/0!
% of revenue #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Change in NWC - - #DIV/0! #DIV/0!
Assumptions
Days sales outstanding - - - - -
Other current assets (% of revenue) 0.00% 0.00% 0.00% 0.00% 0.00%
Days Payables Outstanding - - - - -
Accrued expenses (% of revenue) 0.00% 0.00% 0.00% 0.00% 0.00%
Cash (% of Sales) 0.00% 0.00% 0.00% 0.00% 0.00%
Accrued Payroll (% of Sales) #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Other Assets (% of Sales) #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Capex - - - - -Depreciation & Amortization - - - - -
Other Liabilities (% of Sales) #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Actual
Working Capital Projections
7/29/2019 Discounted Cash Flow Template
5/19
% of 2012 2013 2014 2015 2016
Sales Projected Projected Projected Projected Projected
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! -$ -$ -$ -$ -$
#DIV/0! - - - - -
#DIV/0! - - - - -
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! - - - - -
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! -$ -$ -$ -$ -$
#DIV/0! - - - - -
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! -$ -$ -$ -$ -$
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
2012 2013 2014 2015 2016
Trial Assets #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
and Equity #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
ial Balance #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
7/29/2019 Discounted Cash Flow Template
6/19
2014 2015 2016
$0.00 $0.00 $0.00
- - -- - -
- - -
- - -
- - -
-$ -$ -$
- - -
#DIV/0! #DIV/0! #DIV/0!#DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0!
- - -
0.00% 0.00% 0.00%
- - -
0.00% 0.00% 0.00%
0.00% 0.00% 0.00%
#DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0!
- - -- - -
#DIV/0! #DIV/0! #DIV/0!
Projected
7/29/2019 Discounted Cash Flow Template
7/19
($ in millions)
Preferred arket Valu Total
Debt Stock of Equity apitalizatio
Company A - - - -
Company B - - - -Company C - - - -
Company D
Median - - - -
Mean - - - -
Levered Unlevered Equity Risk Size Risk
Beta Beta Premium Premium
Company A 0.00 0.00 0.00% 0.00%
Company B 0.00 0.00 0.00% 0.00%
Company C 0.00 0.00 0.00% 0.00%Company D
Median 0.00 0.00 0.0%
Mean 0.00 0.00 0.0%
Market Assumptions
Risk Free Rate 0.00%
Equity Risk Premium 0.00%
Tax Rate 0.0%
Target Capital Structure
Debt-to-Total Capitalization 0.82
Equity-to-Total Capitalization 0.92
1.02
Cost of Debt 1.12
Cost of Debt1.22
Tax Rate 1.32
After-tax Cost of Debt 1.42
1.52
Cost of Equity 1.62
Risk-free Rate 1.72
Market Risk Premium 1.82
Unlevered Beta 1.92
Size Premium
0%
0.00%
0.00%
0.00
0.00%
Weighted Average Cost of C
UnleveredB
eta
ITS: WACC Calculation
0.0%
100.0%
0%40%
7/29/2019 Discounted Cash Flow Template
8/19
Cost of Equity
WACC
0.00%
0.00%
7/29/2019 Discounted Cash Flow Template
9/19
Debt to Preferred to Equity to
Debt Total Total Total
to Equity CapitalizationCapitalizationCapitalization
0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0%0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 100.0%
0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0%
Cost of Cost of Cost of
Equity Debt Preferred WACC
0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0%
1.76% 2.26% 2.76% 3.26% 3.76% 4.26% 4.76%
1.76% 2.26% 2.76% 3.26% 3.76% 4.26% 4.76%
1.76% 2.26% 2.76% 3.26% 3.76% 4.26% 4.76%
1.76% 2.26% 2.76% 3.26% 3.76% 4.26% 4.76%
1.76% 2.26% 2.76% 3.26% 3.76% 4.26% 4.76%
1.76% 2.26% 2.76% 3.26% 3.76% 4.26% 4.76%
1.76% 2.26% 2.76% 3.26% 3.76% 4.26% 4.76%
1.76% 2.26% 2.76% 3.26% 3.76% 4.26% 4.76%
1.76% 2.26% 2.76% 3.26% 3.76% 4.26% 4.76%
1.76% 2.26% 2.76% 3.26% 3.76% 4.26% 4.76%
1.76% 2.26% 2.76% 3.26% 3.76% 4.26% 4.76%
1.76% 2.26% 2.76% 3.26% 3.76% 4.26% 4.76%
1.76% 2.26% 2.76% 3.26% 3.76% 4.26% 4.76%
pital
Size Premium
7/29/2019 Discounted Cash Flow Template
10/19
7/29/2019 Discounted Cash Flow Template
11/19
5.26%
5.26%
5.26%
5.26%
5.26%
5.26%
5.26%
5.26%
5.26%
5.26%
5.26%
5.26%
5.26%
7/29/2019 Discounted Cash Flow Template
12/19
CAGR
2009 2010 2011 ('09-'11)
Revenue -$ -$ -$ #DIV/0!
% Growth 4% #DIV/0! #DIV/0!Cost of Revenue - - -
Gross Profit -$ -$ -$ #DIV/0!
% Margin #DIV/0! #DIV/0! #DIV/0!
Selling, General and Administrative - - -
EBITDA -$ -$ -$ #DIV/0!
% Margin #DIV/0! #DIV/0! #DIV/0!
Depreciation & Amortization - - -
EBIT - - - #DIV/0!
% Margin #DIV/0! #DIV/0! #DIV/0!
Taxes @ 40% - - -EBIAT -$ -$ -$ #DIV/0!
Plus: Depreciation & Amortization - - -
Less: Capital Expenditures - - -
Less: Change in Net Working Capital
Unlevered Free Cash Flow
Terminal Value
Discount Period
Discount Factor
Present Value of Free Cash Flow
Debt-to-Total Capitalization
Assumptions Equity-to-Total Capitalization
WACC (All Equity) 0.00% Preferred Equity
Terminal Growth Rate 3.0% Debt-to-Equity
Enterprise Value ($ in millions)
Cumulative PV of FCF #DIV/0! % Senior
PV of Terminal Value #DIV/0! % Mezzanine% of Enterprise Value #DIV/0! Cost of Senior Debt
Cost of Mezzanine Debt
Enterprise Value #DIV/0! Tax Rate
After-tax Cost of Debt
PV of Tax Shield - Cost of Preferred Equity
Actual
7/29/2019 Discounted Cash Flow Template
13/19
NPV all Equity -
APV - Risk-free Rate
Market Risk Premium
Unlevered Beta
Relevered Beta
Size PremiumCost of Equity
WACC
PV of Tax Shield 41,732,000
NPV all Equity 200,000,000
APV 241,732,000
Adjusted Present Value
7/29/2019 Discounted Cash Flow Template
14/19
CAGR
2012 2013 2014 2015 2016 ('12-'16)
-$ -$ -$ -$ -$ #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!- - - - -
-$ -$ -$ -$ -$ #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
- - - - -
-$ -$ -$ -$ -$ #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
- - - - -
- - - - - #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
- - - - - 0-$ -$ -$ -$ -$ #DIV/0!
- - - - -
- - - - -
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0!
1 2 3 4 5
0.90 0.81 0.73 0.65 0.49
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
34.7% 18.9% 0.2% 0.0% 0.0%
39.7% 32.6% 43.4% 47.4% 100.0%
25.3% 48.4% 56.4% 52.6% 0.0%
0.87 0.58 0.00 0.00 -
#DIV/0!
0.0%
59.4% 52.4% 42.2% 0.0% 0.0% 0.5%
38.4% 42.3% 57.8% 100.0% 100.0% 1.0%8.5% 8.5% 8.5% 8.5% 8.5% 1.5%
12.0% 12.0% 12.0% 12.0% 12.0% 2.0%
40.0% 40.0% 40.0% 40.0% 40.0% 2.5%
5.8% 5.7% 6.3% 7.2% 7.2% 3.0%
3.5%
4.0%
8.0% 8.0% 8.0% 8.0% 8.0% 4.5%
Debt
TerminalGrowthRate
Projection
Capital Structure
Preferred Equity
7/29/2019 Discounted Cash Flow Template
15/19
5.0%
5.5%
4.5% 4.5% 4.5% 4.5% 4.5% 6.0%
5.8% 5.8% 5.8% 5.8% 5.8%
1.32 1.32 1.32 1.32 1.32
2.02 1.78 1.33 1.32 1.32
3.3% 3.3% 3.3% 3.3% 3.3%19.4% 18.0% 15.4% 15.4% 15.4%
11.73% 10.84% 11.20% 11.50% 15.37%
Common Equity
7/29/2019 Discounted Cash Flow Template
16/19
#DIV/0!
Enterprise #DIV/0! #DIV/0!
EBITDA M #DIV/0! #DIV/0!
Mean #DIV/0!
4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0%
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
WACC
100.0 120.0 140.0 160.0 180.0 200.0
nterprise Value
Discounted Cash Flow Valuation
7/29/2019 Discounted Cash Flow Template
17/19
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
7/29/2019 Discounted Cash Flow Template
18/19
14.0% 15.0% 16.0%
#DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0!#DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0!
7/29/2019 Discounted Cash Flow Template
19/19
#DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0!