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  • Calculation of FCFE, FCFF, WACC and Valuation of a Firm

    Transféré par

    Aanchal Narula
    4 vues8 pages
    The document calculates free cash flows to the firm (FCFF) and free cash flows to equity (FCFE) for a firm over 5 years and a terminal period to value the firm. It provides financial information like revenues, expenses, depreciation, capital expenditures, changes in working capital, debt balances, and equity values over the periods. It then calculates WACC and discount rates used to determine the present value of the FCFF and FCFE cash flows, yielding values of $5,376,482 for the firm and a negative $2,189,614 for equity.

    Description originale:

    Ratio analysis

    Titre original

    M&A_2743

    Copyright

    © © All Rights Reserved

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    XLSX, PDF, TXT ou lisez en ligne sur Scribd

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    The document calculates free cash flows to the firm (FCFF) and free cash flows to equity (FCFE) for a firm over 5 years and a terminal period to value the firm. It provides financial information like revenues, expenses, depreciation, capital expenditures, changes in working capital, debt balances, and equity values over the periods. It then calculates WACC and discount rates used to determine the present value of the FCFF and FCFE cash flows, yielding values of $5,376,482 for the firm and a negative $2,189,614 for equity.

    Droits d'auteur :

    © All Rights Reserved
    Téléchargez comme XLSX, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    4 vues8 pages

    Calculation of FCFE, FCFF, WACC and Valuation of a Firm

    Transféré par

    Aanchal Narula
    The document calculates free cash flows to the firm (FCFF) and free cash flows to equity (FCFE) for a firm over 5 years and a terminal period to value the firm. It provides financial information like revenues, expenses, depreciation, capital expenditures, changes in working capital, debt balances, and equity values over the periods. It then calculates WACC and discount rates used to determine the present value of the FCFF and FCFE cash flows, yielding values of $5,376,482 for the firm and a negative $2,189,614 for equity.

    Droits d'auteur :

    © All Rights Reserved
    Téléchargez comme XLSX, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    sur 8

    Less:

    Less:
    Less:
    Less:
    Add:
    Less:
    Less:
    Less:
    Add:
    Add:

    Years
    Revenues
    Opertaing Expenses
    Depreciation
    EBIT
    Interest
    PBT
    Taxes
    PAT
    Depreciation
    CapEx
    Changes in WC
    Principal repayment
    FCFE
    Interest net of Taxes
    Principal repayment
    FCFF
    Ke
    WACC
    Value of firm
    Value of equity

    1
    4,000,000.00
    3,100,000.00
    300,000.00
    600,000.00
    650,000.00
    (50,000.00)
    (50,000.00)
    300,000.00
    350,000.00
    200,000.00
    600,000.00
    (900,000.00)
    390,000.00
    600,000.00
    90,000.00

    Calculation of FCFE and FCFF


    2
    3
    4,600,000.00
    5,290,000.00
    3,565,000.00
    4,099,750.00
    345,000.00
    396,750.00
    690,000.00
    793,500.00
    590,000.00
    530,000.00
    100,000.00
    263,500.00
    40,000.00
    105,400.00
    60,000.00
    158,100.00
    345,000.00
    396,750.00
    402,500.00
    462,875.00
    230,000.00
    264,500.00
    600,000.00
    600,000.00
    (827,500.00)
    (772,525.00)
    354,000.00
    318,000.00
    600,000.00
    600,000.00
    126,500.00
    145,475.00

    25.50%
    24.22%
    22.67%
    15.75%
    15.11%
    14.33%
    77,753.78
    94,942.87
    95,495.45
    -717131.474104 -530815.590373 -403973.598306

    CFE and FCFF


    4
    6,083,500.00
    4,714,712.50
    456,262.50
    912,525.00
    470,000.00
    442,525.00
    177,010.00
    265,515.00
    456,262.50
    532,306.25
    304,175.00
    600,000.00
    (714,703.75)
    282,000.00
    600,000.00
    167,296.25

    5
    Terminal Value
    6,996,025.00
    7,695,627.50
    5,421,919.38
    5,964,111.31
    524,701.88
    577,172.06
    1,049,403.75
    1,154,344.13
    410,000.00
    350,000.00
    639,403.75
    804,344.13
    255,761.50
    321,737.65
    383,642.25
    482,606.48
    524,701.88
    577,172.06
    612,152.19
    673,367.41
    349,801.25
    384,781.38
    600,000.00
    (653,609.31)
    1,629.76
    246,000.00
    210,000.00
    600,000.00
    192,390.69
    211,629.76

    21.08%
    19.62%
    13.54%
    12.81%
    96,725.54
    5,011,564.85
    -308682.471745 -229010.638676

    18.42%
    12.21%
    Value of the firm:

    5,376,482.49
    (2,189,613.77)

    Add:

    Calculation of DE ratio
    Years
    1
    Debt
    5,900,000.00

    2
    5,300,000.00

    3
    4,700,000.00

    Equity
    PAT
    Total Equity

    1,950,000.00
    60,000.00
    2,010,000.00

    2,010,000.00
    158,100.00
    2,168,100.00

    Years
    Ke
    weight of equity
    Kd
    weight of debt
    Beta
    DE Ratio
    WACC

    2,000,000.00
    (50,000.00)
    1,950,000.00

    1
    25.50%
    0.5
    6%
    0.5
    3
    3.03
    15.75%

    2
    24.22%
    0.5
    6%
    0.5
    2.77
    2.64
    15.11%

    3
    22.67%
    0.5
    6%
    0.5
    2.49
    2.17
    14.33%

    4
    4,100,000.00

    5 Terminal Year
    3,500,000.00
    2,900,000.00

    2,168,100.00
    265,515.00
    2,433,615.00

    2,433,615.00
    383,642.25
    2,817,257.25

    4
    21.08%
    0.5
    6%
    0.5
    2.20
    1.68
    13.54%

    2,817,257.25
    482,606.48
    3,299,863.73

    5
    Terminal Year
    19.62%
    18.42%
    0.5
    0.5
    6%
    6%
    0.5
    0.5
    1.93
    1.71
    1.24
    0.88
    12.81%
    12.21%

    Revenues
    Operating Expenses

    Base Year
    4,000,000.00
    3,100,000.00

    Growth rate during


    forecast period

    15%

    Growth rate during


    terminal period
    CapEx
    Depreciation

    10%
    350,000.00
    300,000.00

    WC Charge (% of
    revenue)
    Interest on debt
    Principal repayment
    each year during
    forecast period
    Financing Structure
    Debt
    Equity

    Beta
    Ke
    Rp
    D/E
    Tax Rate

    5%
    10%

    600,000.00
    6,500,000.00
    2,000,000.00

    3
    25.50%
    5.50%
    0.5
    40%

    Less:

    Years
    Opening Balance
    Repayment
    Closing Balance

    Interest Calculation

    1
    6,500,000.00
    600,000.00
    5,900,000.00

    650,000.00

    2
    5,900,000.00
    600,000.00
    5,300,000.00

    590,000.00

    3
    5,300,000.00
    600,000.00
    4,700,000.00

    530,000.00

    4
    4,700,000.00
    600,000.00
    4,100,000.00

    470,000.00

    5 Terminal Year
    4,100,000.00
    3,500,000.00
    600,000.00
    600,000.00
    3,500,000.00
    2,900,000.00

    410,000.00

    350,000.00

    Terminal value as per FCFE


    Terminal Value

    19,366.11

    Terminal value as per FCFF


    Terminal Value

    9,585,756.83

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