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Saito Solar-Teaching Notes Exhibits
Saito Solar-Teaching Notes Exhibits
¥6,700.00
¥6,600.00 4.8% 4.8%
Actual Projected
Income Item 2012 2013 2014 2015 2016 2017
Sales 6,234.1 7,792.6 9,351.2 10,753.8 11,829.2 12,420.7
COGS 4,041.9 4,994.8 5,993.8 6,892.8 7,582.1 7,961.2
Gross margin 2,192.2 2,797.8 3,357.4 3,861.0 4,247.1 4,459.5
Gross margin (%) 35.2% 35.9% 35.9% 35.9% 35.9% 35.9%
¥396
¥8,000 ¥400
¥6,000 ¥12,421 ¥300
¥250 ¥10,754¥11,829
¥9,351
¥4,000 ¥7,793 ¥200
¥6,234
¥2,000 ¥100
¥0 ¥0
2012 2013 2014 2015 2016 2017
C1 /(r-g) 8,830.5
[1-(1+g)/(1+r)] ^n
0.6
(Using Growing Annuity) Total Firm Value 5,347.8
aito Solar based on Growing Perpetuity Projection
en, year ending June 30)
420.5
10%
5%
or Firm Value 8,830.5 Using C0 as the base, increase it by g
or Firm Value 8,830.5 Using C1 as the base C1/(r-g)
Exhibit TN-2a. Valuation of Saito Solar based on Projected Free Cash Flows
(millions of Yen, year ending June 30)
Actual Projected
Income Item 2012 2013 2014 2015 2016
Sales 6,234.1 7,792.6 9,351.2 10,753.8 11,829.2
COGS 4,041.9 4,994.8 5,993.8 6,892.8 7,582.1
Gross margin 2,192.2 2,797.8 3,357.4 3,861.0 4,247.1
Gross margin (%) 35.2% 35.9% 35.9% 35.9% 35.9%
WACC 10%
PV of FCF 1,954.5
Terminal Value Growth R 1%
PV of Terminal Value 4,378.5 4,378.5 or using NPV formula
Total Firm Value (EV) 6,333.0
Exhibit TN-2b. Valuation of Saito Solar with different WACCs and terminal growth ra
1,875.0
1,200.0
1,384.5
11.1%
250.0
1,134.5
9.1%
431.1
703.4
5.7%
953.4
(275.0)
(50.0)
628.4
7,051.7
Cs and terminal growth ra
e
3.0%
9,020.6
7,695.5
6,702.6