As an Analyst you are requried to perform the valaution of Agri Ltd.

The company is a conglomerate dealing in diffe

For the same financials of 2021 have been presented below:-

Amt in lakhs
Particulars Garden Hose Segment Potting Soil Segment Total
Revenue 100 80 180
(-) COGS& Operating Expenses 50 30 80
EBITDA 50 50 100
(-) Depreciation & Ammortisation 20 30 50
EBIT 30 20 50

(-) Corporate Overheads 5

(-) Interest 15

EBT 30
(-) Tax 10
PAT 20

Total Debt 200

Cash & Cash Equivalents 50

Comparable for Garden Hose Segment EV (in lakhs) EBITDA (in lakhs)
Aqua ltd 120 24
Flora ltd 80 12
Leaf ltd 60 6

Comparable for Potting Soil Segment EV (in lakhs) EBITDA (in lakhs)
Earth ltd 96 16
Worm ltd 64 8
Dirt ltd 48 4

The corporate overheads are expected to grow at the rate of inflation which currently stands at 3.5% p.a
The discounting rate applicable is the cost of capital of the company which currently stands at 18% p.a
conglomerate dealing in different segments associated with agrian sector

stands at 3.5% p.a

ands at 18% p.a
 Amt in lakhs
Particulars Garden Hose Segment Potting Soil Segment Total
Revenue 100 80 180
(-) COGS& Operating Expenses 50 30 80
EBITDA 50 50 100
(-) Depreciation & Ammortisation 20 30 50
EBIT 30 20 50

(-) Corporate Overheads 5

(-) Interest 15

EBT 30
(-) Tax 10
PAT 20

Total Debt 200

Cash & Cash Equivalents 50

Comparable for Garden Hose Segment EV (in lakhs) EBITDA (in lakhs) EV/EBITDA Multiple
Aqua ltd 120 24 5
Flora ltd 80 12 6.666667
Leaf ltd 60 6 10
Average EV/EBITDA 7.222222

Comparable for Potting Soil Segment EV (in lakhs) EBITDA (in lakhs)
Earth ltd 96 16 6
Worm ltd 64 8 8
Dirt ltd 48 4 12
Average EV/EBITDA 8.666667

Particulars Garden Hose Segment Potting Soil Segment Total

EBITDA 50 50
Applicable EV/EBITDA 7.22 8.67
EV 361.11 433.33 794.44
Less: PV of Corporate OH 35.69
Less: Net Debt 150
Value of Equity 608.75
EV/EBITDA Multiple