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APECS Financial Modelling Test (Updated) - by Keng Yang
APECS Financial Modelling Test (Updated) - by Keng Yang
30 January 2023
Test Brief
Premise
You are currently interviewing for a role at a Private Equity firm and have been tasked to complete this
financial model in order to proceed to the next stage of the interview.
Task
With the assumptions given (see “Assumptions” tab), you are required to balance the 3 financial statemen
(see “Financial Statements” tab) and fill in the other tabs (see “Capex Schedule”, “Working Capital Schedu
“Debt Schedule”, and “DCF”).
Deliverables
Send your excel file to apec@sa.smu.edu.sg by 21 January 2359. Please title your excel file “APECS
Financial Modelling Test_<Group Member Name 1>_<Group Member Name 2>”. You will be given feedba
on your completed model before ICC 3.
Navigation:
Assumptions
Financial Statements
Capex Schedule
Working Capital Schedule
Debt Schedule
DCF
Legend:
Model Input/Assumptions
Formula of Cells within Same Sheet
Hardcoded Cells from AR, Investor Presentation or External Research
Linked to Same Sheet
Linked to Other Sheets
Linked to Other Files
###
12,345
12,345
12,345
12,345
Navigation
Assumptions
Forecast
FY 2023
Revenue growth % 5%
Gross margins % 50%
Operating expenses (as % of revenue) % 15%
Tax rate % 30.0%
Capex SGD M 80.0
Trade receivables (days of revenue) days 60.0
Inventories (days of cost of sales) days 80.0
Trade payables (days of cost of sales) days 50.0
Other receivable SGD M 35.0
Other payables SGD M 20.0
Interest on loan % 9.0%
Deposit rate % 1.0%
Minimum cash SGD M 5.0
Depreciation policy for existing fixed assets 4
Depreciation policy for new fixed assets 15
Repayment of existing debt 4
Days in a year 365
Note:
- For any shortfall in cash, please assume 100% financed by debt. Also assume cash sweep for debt r
- For calculation of interest expense/income, please use average of opening and closing debt/cash bal
- For calculation of working capital days, please use year end balance as reference
Forecast Forecast Forecast Forecast
FY 2024 FY 2025 FY 2026 FY 2027
6% 7% 8% 9%
48% 46% 44% 42%
15% 15% 15% 15%
30.0% 30.0% 30.0% 30.0%
80.0 50.0 50.0 50.0
50.0 50.0 50.0 50.0
75.0 70.0 70.0 70.0
50.0 50.0 45.0 45.0
35.0 40.0 40.0 40.0
10.0 10.0 - -
9.0% 9.0% 9.0% 9.0%
1.0% 1.0% 1.0% 1.0%
years
years
years
days
x Income Statement
Revenue 300.0
Cost of goods sold (150.0)
Gross profit 150.0
Operating expenses (50.0)
EBITDA 100.0
Depreciation & amortization (40.0)
EBIT 60.0
Net interest expense (5.0)
Profit before taxation 55.0
Taxation (16.5)
Profit after taxation 38.5
x Balance Sheet
Cash 30.0
Inventories 33.0
Trade receivable 50.0
Other receivable 20.0
Total current assets 133.0
Net PPE 255.5
Total assets 388.5
Capex
Cash flow from investing
Opening Cash
Change in cash
Closing Cash 30.0
1 2
New PPE Depreciation Waterfall 5.3 10.7
FY 2023 0 80.0 5.3 5.3
FY 2024 1 80.0 5.3
FY 2025 2 50.0
FY 2026 3 50.0
FY 2027 4 50.0
Forecast
2025 F 2026 F 2027 F
243.9 212.7 242.0
3 4 5
14.0 17.3 20.7
5.3 5.3 5.3
5.3 5.3 5.3
3.3 3.3 3.3
3.3 3.3
3.3
Navigation
Working Capital Schedule Actual Forecast
in SGD M 2022 A 2023 F 2024 F
Inventories 33.0 12.9 4.8
Trade receivable 50.0 43.2 39.5
Trade payables 20.0 7.8 2.9
Total WC 63.0 48.2 41.4
Change in WC 14.8 6.9
1 2 3
Debt
Opening 70.0 23.0 -
Mandatory repayment (17.5) (17.5) 0.0
Balance 52.5 5.5 -
Drawdown / (repayment) of debt (29.5) (5.5) 0.0
Closing 23.0 0.0 0.0
Interest
Average debt balance 46.5 11.5 0.0
Interest expense 4.2 1.0 0.0
4 5
- -
0.0 0.0
- -
0.0 0.0
0.0 0.0
0.0 0.0
0.0 0.0
191.4 310.0
1.9 3.1
Navigation
WACC Calculaton
Cost of Debt After Tax 0.049
Risk free rate 0.03
Beta 0.8
Market return 0.15
Cost of Equity 0.126
Debt 70
Debt % 37%
Equity 120
Equity % 63%
WACC 9.8%
EBIT
(-) Taxes
(+) Depreciation
(-) Capex
(-) Change in NWC
(-) Change in OWC
FCF
Discounted FCF
Terminal value
Enterprise Value
(-) Debt
(+) Cash
Equity Value
2023E EBITDA
Implied EV/EBITDA
413.1
1,996.5
2,409.6
(70.0)
30.0
2,369.6
125.3
19.2x
36.4
65.0x