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  • NOPAT Calculations Wacc Calculation

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    Rohit Bhardawaj
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    This document provides calculations to value a company using the net operating profit after-tax (NOPAT) method. It includes calculations of revenue, expenses, operating profit, NOPAT, capital expenditures, depreciation, working capital changes, and free cash flows for several years. It then discounts the projected free cash flows and calculates a terminal value to derive a total firm value of $10.99 billion, with equity value of $10.09 billion after subtracting $900 million of debt.

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    Bharat Hotels Case

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    Bharat Hotels

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    This document provides calculations to value a company using the net operating profit after-tax (NOPAT) method. It includes calculations of revenue, expenses, operating profit, NOPAT, capital expenditures, depreciation, working capital changes, and free cash flows for several years. It then discounts the projected free cash flows and calculates a terminal value to derive a total firm value of $10.99 billion, with equity value of $10.09 billion after subtracting $900 million of debt.

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    © All Rights Reserved
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    135 views1 page

    NOPAT Calculations Wacc Calculation

    Uploaded by

    Rohit Bhardawaj
    This document provides calculations to value a company using the net operating profit after-tax (NOPAT) method. It includes calculations of revenue, expenses, operating profit, NOPAT, capital expenditures, depreciation, working capital changes, and free cash flows for several years. It then discounts the projected free cash flows and calculates a terminal value to derive a total firm value of $10.99 billion, with equity value of $10.09 billion after subtracting $900 million of debt.

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    © All Rights Reserved
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    NOPAT Calculations

    0 1 2 3 4 5 6 7
    Rooms 2190 2280 2410 2490 2620 2806 3161 3311 WACC CALCULATION
    Occupancy 0.6 0.61 0.62 0.63 0.64 0.65 0.66 D 900
    Occ. Rooms (pa) 499320 536586.5 563487 602469 655481.6 749947.25 797619.9 E 17100 rf 0.06
    B 0.6775
    Rent per room 2500 2875 3306.25 3802.1875 4372.515625 5028.392969 5782.651914 wd 0.05 rm-rf 0.08
    we 0.95
    Total rent revenue 1248300000 1542686188 1863028894 2290700101 2866103538 3771029479 4612358241 kd*(1-T) 0.064
    F&B revenue 811395000 1002746022 1210968781 1488955066 1862967300 2451169161 2998032857 ke 0.1142
    Managed properties 87381000 107988033.1 130412022.6 160349007.1 200627247.7 263972063.5 322865076.9
    Total Revenue 2147076000 2653420243 3204409697 3940004174 4929698085 6486170704 7933256175 WACC 0.11169 0.11169

    Material expenses 308954250 381814831.4 461099651.2 566948275 709360625.6 933329796 1141558665


    Personnel expenses 308954250 381814831.4 461099651.2 566948275 709360625.6 933329796 1141558665
    Service expenses 370745100 458177797.7 553319581.4 680337930 851232750.8 1119995755 1369870398
    Sales & Gen admn. exp, 370745100 458177797.7 553319581.4 680337930 851232750.8 1119995755 1369870398
    Total expenses excluding depreciation 1359398700 1679985258 2028838465 2494572410 3121186753 4106651102 5022858125

    Operating Profit before Depreciation (EBITDA) 787677300 973434984.3 1175571232 1445431764 1808511332 2379519601 2910398050

    Depreciation 119700000 132321000 139858530 165068432.9 209513642.6 292847687.6 328348349.5

    EBIT 667977300 841113984.3 1035712702 1280363331 1598997690 2086671914 2582049701

    NOPAT 534381840 672891187.5 828570161.6 1024290665 1279198152 1669337531 2065639761

    Assets
    Gross fixed assets (BOY) 2110 2310 2610 2850 3350 4150 5550
    Add: Additions (BOY) 200 300 240 500 800 1400 800
    Total Block(BOY) 2310 2610 2850 3350 4150 5550 6350
    Less: Acc. Depreciation (BOY) 600 719.7 852.021 991.87953 1156.947963 1366.461605 1659.309293
    Net Fixed Assets 1710 1890.3 1997.979 2358.12047 2993.052037 4183.538395 4690.690707
    Depreciation for year 119.7 132.321 139.85853 165.0684329 209.5136426 292.8476876 328.3483495

    Current Assets At the Beginning 516 617.9085 763.6296628 922.1993024 1133.89655 1418.721251 1866.659592
    Current Assets at End 617.9085 763.6296628 922.1993024 1133.89655 1418.721251 1866.659592 2283.11733
    Inc in CA 101.9085 145.7211628 158.5696396 211.6972476 284.8247013 447.9383408 416.4577375

    FCFF CALCULATION
    NOPAT 534381840 672891187.5 828570161.6 1024290665 1279198152 1669337531 2065639761
    Net Capex (Capex - Dep) 80300000 167679000 100141470 334931567.1 590486357.4 1107152312 471651650.5
    Working Capital Changes 101908500 145721162.8 158569639.6 211697247.6 284824701.3 447938340.8 416457737.5
    FCFF 352173340 359491024.6 569859052 477661850 403887093.2 114246877.7 1177530373

    VALUATION

    PV of Explicit Cash Flows 316790957.9 290884549.3 414778612.1 312741676.6 237870989.7 60526023.96 561159377.1
    Terminal Value 18451330626 0.045 Terminal Growth Rate
    PV of Terminal Value 8793095653

    Firm Value 10987847840


    Less Value of Debt 900000000
    Value of Equity 10087847840 10087.84784 million

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