year

0 1 2
Sales 83.60 89.45 95.71
Cost of goods sold 66.19 71.31
EBITDA 23.26 24.41
Depreciation 9.89 10.59
PBT 13.36 13.82
Tax@35% 4.68 4.84
PAT 8.69 8.98

delta fixed assets 4.5 4.9

delta working capital 0.5 0.8
free cash flows 3.72 3.22
Tax rate % 35
WACC 0.09
Long term growth forecast 3

PV free cash flows 20.50

PV Horizon 67.58
PV company 88.08
Assumptions
Sales growth in % 7 7
Cost (percent of sales) 74 74.5
Working capital (percent of sales) 13.3 13 13
Net fixed assets (percent of sales) 79.2 79 79
Depreciation (percent of net fixed assets) 14 14

Fixed assests and Working Capital

Net fixed assets 66.2 70.7 75.6

Net working capital 11.1 11.6 12.4

Note Here working capital means working capital without cash

Here we assume the leverage is not changing

Cost of debt 0.06

Cost of equity 0.124
Marginal tax rate 0.35
Debt ratio 0.4
Equity ratio 0.6
WACC 0.09
 3 4 5 6 7 Objectives
102.41 106.51 110.77 115.20 118.66 Calculate WACC
76.30 79.88 83.08 86.98 90.18 Free cash flows
26.12 26.63 27.69 28.22 28.48 Value of firm using WACC
11.33 11.78 12.25 12.74 13.12 Assuming leverage is constant
14.79 14.85 15.44 15.48 15.35
5.18 5.20 5.40 5.42 5.37
9.61 9.65 10.04 10.06 9.98

5.3 3.2 3.4 3.5 2.7

0.9 0.5 0.6 0.6 0.4
3.45 5.88 6.12 5.99 6.80

113.3

7 4 4 4 3
74.5 75 75 75.5 76
13 13 13 13 13
79 79 79 79 79
14 14 14 14 14

80.9 84.1 87.5 91.0 93.7

13.3 13.8 14.4 15.0 15.4