Business Valuation Exercises Strictly Confidential

Table of Contents

EV and Equity Value

EV vs Equity Multiples
Info for Beta
WACC
Industry Beta
Terminal Value
DCF XNPV XIRR

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Starting with Share Price Starting with Enterprise Value
$000s $000s
Share Price ($/sh) $25.00 Share Price ($/sh) $25.00
Shares Outstanding (000) 20,000 Shares Outstanding (000) 20,000
Market Capitalization $500,000 Market Capitalization 500,000

Short Term Debt $0 Short Term Debt $0

Long Term Debt $30,000 Long Term Debt $30,000
Cash $2,395 Cash $2,395
Net Debt $27,605 Net Debt $27,605

Enterprise Value $527,605 Enterprise Value (DCF/Comps) $527,605

Income Statement Multiples
All figures in USD thousands unless stated Company ACompany B All figures in USD thousands unless stated Company ACompany B

2023F 2023F Market Cap 1 160,000 178,000

Net Debt 20,000 2,000
Enterprise Value 180,000 180,000
Revenue 56,481 56,481 EBITDA 20,914 20,914
COGS (27,111) (27,111) Enterprise Value/EBITDA 8.6x 8.6x
Gross Profit 29,370 29,370

SG&A (6,359) (6,359) Company ACompany B

Other (2,097) (2,097)
EBITDA 20,914 20,914 Market Cap 160,000 178,000
Net Income 12,175 13,040
Depreciation (4,288) (4,288) Price/Earnings 13.1x 13.6x
EBIT 16,626 16,626

Interest Expense (1,200) (120)

EBT 15,426 16,506
Model assumes Company B's market cap
Provision for Taxes (3,252) (3,466) is exactly higher than Company A's due to the difference in debt.⁽¹⁾

Net Income 12,175 13,040

Simplified Balance Sheet

All figures in USD thousands unless stated Company ACompany B

2023F 2023F

Total Assets 100,000 100,000

Debt 20,000 2,000

Shareholder's Equity 80,000 98,000
 Index % Change Stock % Change
Date Close Price Weekly Close Price Weekly
1/31/2017 176.73 30.90
2/7/2017 176.71 (0.0%) 30.92 0.1%
2/14/2017 178.15 0.8% 31.17 0.8%
2/21/2017 178.44 0.2% 31.22 0.1%
2/28/2017 178.59 0.1% 30.37 (2.7%)
3/7/2017 180.32 1.0% 30.36 (0.0%)
3/14/2017 180.87 0.3% 29.88 (1.6%)
3/21/2017 181.80 0.5% 29.79 (0.3%)
3/28/2017 180.87 (0.5%) 29.19 (2.0%)
4/4/2017 182.03 0.6% 29.38 0.6%
4/11/2017 184.81 1.5% 30.27 3.0%
4/18/2017 186.05 0.7% 31.50 4.1%
4/25/2017 185.94 (0.1%) 30.82 (2.2%)
5/2/2017 185.77 (0.1%) 31.13 1.0%
5/9/2017 185.94 0.1% 31.01 (0.4%)
5/16/2017 188.05 1.1% 31.27 0.8%
5/23/2017 187.18 (0.5%) 31.18 (0.3%)
5/30/2017 187.93 0.4% 31.34 0.5%
6/6/2017 187.63 (0.2%) 31.35 0.0%
6/13/2017 187.75 0.1% 31.59 0.8%
6/20/2017 190.05 1.2% 34.35 8.7%
6/27/2017 190.81 0.4% 34.00 (1.0%)
7/4/2017 193.88 1.6% 33.67 (1.0%)
7/11/2017 193.63 (0.1%) 33.56 (0.3%)
7/18/2017 193.77 0.1% 35.80 6.7%
7/25/2017 194.56 0.4% 36.73 2.6%
8/1/2017 195.32 0.4% 36.86 0.4%
8/8/2017 193.76 (0.8%) 38.44 4.3%
8/15/2017 195.60 0.9% 37.69 (2.0%)
8/22/2017 195.62 0.0% 37.62 (0.2%)
8/29/2017 194.56 (0.5%) 37.83 0.6%
9/5/2017 197.49 1.5% 40.22 6.3%
9/12/2017 196.96 (0.3%) 39.02 (3.0%)
9/19/2017 196.74 (0.1%) 36.09 (7.5%)
9/26/2017 195.71 (0.5%) 34.46 (4.5%)
10/3/2017 197.30 0.8% 35.33 2.5%
10/10/2017 197.75 0.2% 35.83 1.4%
10/17/2017 197.92 0.1% 35.82 (0.0%)
10/24/2017 199.29 0.7% 36.04 0.6%
10/31/2017 197.96 (0.7%) 35.76 (0.8%)
11/7/2017 199.44 0.7% 36.17 1.1%
11/14/2017 198.58 (0.4%) 37.43 3.5%
11/21/2017 196.87 (0.9%) 37.10 (0.9%)
11/28/2017 194.19 (1.4%) 36.65 (1.2%)
12/5/2017 195.88 0.9% 38.95 6.3%
12/12/2017 198.20 1.2% 37.73 (3.1%)
12/19/2017 199.40 0.6% 38.90 3.1%
12/26/2017 199.08 (0.2%) 39.58 1.7%
 Index % Change Stock % Change
Date Close Price Weekly Close Price Weekly
1/2/2018 202.83 1.9% 39.93 0.9%
1/9/2018 202.89 0.0% 41.34 3.5%
1/16/2018 203.93 0.5% 40.02 (3.2%)
1/23/2018 203.86 (0.0%) 40.25 0.6%
1/30/2018 205.40 0.8% 41.72 3.7%
2/6/2018 205.12 (0.1%) 41.33 (0.9%)
2/13/2018 205.20 0.0% 41.26 (0.2%)
2/20/2018 204.40 (0.4%) 41.31 0.1%
2/27/2018 204.71 0.2% 41.29 (0.0%)
3/6/2018 208.35 1.8% 41.78 1.2%
3/13/2018 208.20 (0.1%) 43.63 4.4%
3/20/2018 207.18 (0.5%) 43.02 (1.4%)
3/27/2018 206.54 (0.3%) 41.64 (3.2%)
4/3/2018 206.28 (0.1%) 42.84 2.9%
4/10/2018 208.16 0.9% 43.01 0.4%
4/17/2018 207.75 (0.2%) 42.63 (0.9%)
4/24/2018 204.72 (1.5%) 42.22 (1.0%)
5/1/2018 205.54 0.4% 42.73 1.2%
5/8/2018 203.31 (1.1%) 42.73 0.0%
5/15/2018 199.59 (1.8%) 42.16 (1.3%)
5/22/2018 201.27 0.8% 42.64 1.1%
5/29/2018 203.88 1.3% 43.41 1.8%
6/5/2018 200.93 (1.4%) 42.13 (2.9%)
6/12/2018 199.40 (0.8%) 40.80 (3.2%)
6/19/2018 203.03 1.8% 39.91 (2.2%)
6/26/2018 202.27 (0.4%) 40.24 0.8%
7/3/2018 200.68 (0.8%) 40.08 (0.4%)
7/10/2018 200.20 (0.2%) 39.87 (0.5%)
7/17/2018 198.20 (1.0%) 39.35 (1.3%)
7/24/2018 197.61 (0.3%) 39.35 0.0%
7/31/2018 202.15 2.3% 39.74 1.0%
8/7/2018 203.55 0.7% 39.62 (0.3%)
8/14/2018 204.79 0.6% 39.86 0.6%
8/21/2018 203.27 (0.7%) 42.44 6.5%
8/28/2018 203.54 0.1% 41.81 (1.5%)
9/4/2018 204.17 0.3% 41.44 (0.9%)
9/11/2018 201.79 (1.2%) 41.08 (0.9%)
9/18/2018 197.26 (2.2%) 40.04 (2.5%)
9/25/2018 197.36 0.0% 40.18 0.3%
10/2/2018 196.59 (0.4%) 37.05 (7.8%)
10/9/2018 195.82 (0.4%) 37.61 1.5%
10/16/2018 195.75 (0.0%) 37.93 0.9%
10/23/2018 195.76 0.0% 38.77 2.2%
10/30/2018 193.67 (1.1%) 38.40 (1.0%)
11/6/2018 193.08 (0.3%) 37.47 (2.4%)
11/13/2018 191.77 (0.7%) 37.52 0.1%
11/20/2018 187.74 (2.1%) 36.62 (2.4%)
11/27/2018 185.41 (1.2%) 36.82 0.6%
12/4/2018 189.98 2.5% 37.47 1.8%
12/11/2018 189.44 (0.3%) 37.70 0.6%
12/18/2018 190.17 0.4% 37.66 (0.1%)
12/25/2018 189.46 (0.4%) 37.74 0.2%
 Index % Change Stock % Change
Date Close Price Weekly Close Price Weekly
1/1/2019 189.33 (0.1%) 37.00 (2.0%)
1/8/2019 191.57 1.2% 36.48 (1.4%)
1/15/2019 189.32 (1.2%) 34.55 (5.3%)
1/22/2019 188.65 (0.4%) 34.43 (0.4%)
1/29/2019 183.32 (2.8%) 35.77 3.9%
2/5/2019 184.16 0.5% 35.64 (0.3%)
2/12/2019 185.37 0.7% 34.95 (1.9%)
2/19/2019 189.81 2.4% 35.68 2.1%
2/26/2019 188.90 (0.5%) 35.44 (0.7%)
3/5/2019 190.73 1.0% 35.68 0.7%
3/12/2019 187.48 (1.7%) 34.85 (2.3%)
3/19/2019 189.70 1.2% 34.01 (2.4%)
3/26/2019 188.07 (0.9%) 33.31 (2.1%)
4/2/2019 189.25 0.6% 34.09 2.3%
4/9/2019 191.69 1.3% 32.28 (5.3%)
4/16/2019 193.19 0.8% 33.60 4.1%
4/23/2019 195.49 1.2% 33.83 0.7%
4/30/2019 195.53 0.0% 34.71 2.6%
5/7/2019 190.77 (2.4%) 33.76 (2.7%)
5/14/2019 193.00 1.2% 34.16 1.2%
5/21/2019 189.24 (1.9%) 33.25 (2.6%)
5/28/2019 190.44 0.6% 33.46 0.6%
6/4/2019 191.85 0.7% 33.85 1.1%
6/11/2019 190.13 (0.9%) 33.44 (1.2%)
6/18/2019 195.84 3.0% 34.38 2.8%
6/25/2019 196.92 0.6% 34.60 0.7%
7/2/2019 198.58 0.8% 35.83 3.5%
7/9/2019 198.58 0.0% 35.83 0.0%
7/16/2019 195.99 (1.3%) 35.29 (1.5%)
7/23/2019 195.62 (0.2%) 35.96 1.9%
7/30/2019 193.66 (1.0%) 36.68 2.0%
8/6/2019 192.70 (0.5%) 36.72 0.1%
8/13/2019 191.25 (0.8%) 36.55 (0.5%)
8/20/2019 194.07 1.5% 36.80 0.7%
8/27/2019 193.30 (0.4%) 36.80 0.0%
9/3/2019 194.17 0.5% 38.18 3.8%
9/10/2019 196.34 1.1% 38.46 0.7%
9/17/2019 197.90 0.8% 39.76 3.4%
9/24/2019 195.19 (1.4%) 39.42 (0.9%)
10/1/2019 192.84 (1.2%) 36.97 (6.2%)
10/8/2019 191.03 (0.9%) 36.03 (2.5%)
10/15/2019 190.45 (0.3%) 37.00 2.7%
10/22/2019 193.05 1.4% 37.51 1.4%
10/29/2019 197.38 2.2% 38.54 2.7%
11/5/2019 196.56 (0.4%) 38.49 (0.1%)
11/12/2019 196.14 (0.2%) 38.41 (0.2%)
11/19/2019 194.85 (0.7%) 37.85 (1.5%)
11/26/2019 194.15 (0.4%) 37.68 (0.5%)
12/3/2019 198.03 2.0% 41.07 9.0%
12/10/2019 199.50 0.7% 41.34 0.7%
12/17/2019 201.23 0.9% 41.70 0.9%
12/24/2019 200.92 (0.2%) 41.60 (0.3%)
12/31/2019 201.42 0.2% 41.49 (0.3%)
 Index % Change Stock % Change
Date Close Price Weekly Close Price Weekly
1/7/2020 201.57 0.1% 41.52 0.1%
1/14/2020 201.68 0.1% 41.63 0.3%
1/21/2020 201.31 (0.2%) 41.13 (1.2%)
1/28/2020 202.24 0.5% 41.53 1.0%
2/4/2020 204.34 1.0% 42.00 1.1%
2/11/2020 205.28 0.5% 41.32 (1.6%)
2/18/2020 205.26 (0.0%) 41.31 (0.0%)
2/25/2020 204.66 (0.3%) 41.56 0.6%
3/3/2020 205.09 0.2% 43.02 3.5%
3/10/2020 203.74 (0.7%) 41.71 (3.1%)
3/17/2020 204.83 0.5% 41.14 (1.4%)
3/24/2020 205.06 0.1% 41.06 (0.2%)
3/31/2020 205.32 0.1% 40.82 (0.6%)
4/7/2020 205.59 0.1% 40.92 0.2%
4/14/2020 203.42 (1.1%) 40.28 (1.6%)
4/21/2020 204.64 0.6% 39.68 (1.5%)
4/28/2020 205.18 0.3% 41.69 5.1%
5/5/2020 204.80 (0.2%) 41.82 0.3%
5/12/2020 209.24 2.2% 43.56 4.2%
5/19/2020 209.28 0.0% 43.57 0.0%
5/26/2020 207.11 (1.0%) 42.81 (1.7%)
6/2/2020 207.15 0.0% 44.28 3.4%
6/9/2020 207.80 0.3% 44.59 0.7%
6/16/2020 210.57 1.3% 45.28 1.5%
6/23/2020 212.45 0.9% 45.59 0.7%
6/30/2020 212.10 (0.2%) 45.51 (0.2%)
7/7/2020 212.04 (0.0%) 45.41 (0.2%)
7/14/2020 212.36 0.2% 45.71 0.7%
7/21/2020 211.91 (0.2%) 44.10 (3.5%)
7/28/2020 212.18 0.1% 44.11 0.0%
8/4/2020 210.90 (0.6%) 44.07 (0.1%)
8/11/2020 208.03 (1.4%) 43.20 (2.0%)
8/18/2020 206.43 (0.8%) 43.22 0.0%
8/25/2020 209.29 1.4% 44.25 2.4%
9/1/2020 207.93 (0.6%) 45.29 2.4%
9/8/2020 207.75 (0.1%) 45.25 (0.1%)
9/15/2020 208.18 0.2% 45.34 0.2%
9/22/2020 209.20 0.5% 47.38 4.5%
9/29/2020 210.15 0.5% 46.27 (2.3%)
10/6/2020 209.26 (0.4%) 48.89 5.7%
10/13/2020 207.67 (0.8%) 48.23 (1.4%)
10/20/2020 204.51 (1.5%) 46.63 (3.3%)
10/27/2020 203.63 (0.4%) 48.71 4.5%
11/3/2020 203.47 (0.1%) 45.12 (7.4%)
11/10/2020 203.12 (0.2%) 46.93 4.0%
11/17/2020 204.46 0.7% 49.68 5.9%
11/24/2020 206.92 1.2% 50.22 1.1%
12/1/2020 207.12 0.1% 52.73 5.0%
12/8/2020 205.04 (1.0%) 52.09 (1.2%)
12/15/2020 200.55 (2.2%) 51.58 (1.0%)
12/22/2020 201.31 0.4% 51.62 0.1%
12/29/2020 199.54 (0.9%) 53.23 3.1%
 Index % Change Stock % Change
Date Close Price Weekly Close Price Weekly
1/5/2021 198.95 (0.3%) 56.69 6.5%
1/12/2021 199.25 0.1% 56.78 0.1%
1/19/2021 199.37 0.1% 56.53 (0.4%)
1/26/2021 198.65 (0.4%) 54.18 (4.2%)
2/2/2021 201.51 1.4% 52.57 (3.0%)
2/9/2021 198.98 (1.3%) 54.80 4.2%
2/16/2021 200.15 0.6% 59.13 7.9%
2/23/2021 200.97 0.4% 60.67 2.6%
3/2/2021 195.99 (2.5%) 56.98 (6.1%)
3/9/2021 193.21 (1.4%) 56.91 (0.1%)
3/16/2021 193.83 0.3% 53.97 (5.2%)
3/23/2021 193.78 (0.0%) 55.09 2.1%
3/30/2021 192.43 (0.7%) 54.37 (1.3%)
4/6/2021 189.95 (1.3%) 55.30 1.7%
4/13/2021 189.29 (0.3%) 57.05 3.2%
4/20/2021 190.37 0.6% 56.00 (1.8%)
4/27/2021 194.57 2.2% 56.01 0.0%
5/4/2021 194.61 0.0% 56.36 0.6%
5/11/2021 195.27 0.3% 56.88 0.9%
5/18/2021 197.96 1.4% 61.31 7.8%
5/25/2021 198.62 0.3% 63.78 4.0%
6/1/2021 198.02 (0.3%) 63.91 0.2%
6/8/2021 199.63 0.8% 63.85 (0.1%)
6/15/2021 200.98 0.7% 64.28 0.7%
6/22/2021 200.86 (0.1%) 64.56 0.4%
6/29/2021 200.32 (0.3%) 66.20 2.5%
7/6/2021 199.95 (0.2%) 66.61 0.6%
7/13/2021 198.42 (0.8%) 65.96 (1.0%)
7/20/2021 199.46 0.5% 69.54 5.4%
7/27/2021 198.71 (0.4%) 71.02 2.1%
8/3/2021 199.30 0.3% 69.88 (1.6%)
8/10/2021 201.66 1.2% 70.29 0.6%
8/17/2021 201.09 (0.3%) 67.35 (4.2%)
8/24/2021 199.65 (0.7%) 65.65 (2.5%)
8/31/2021 198.26 (0.7%) 67.30 2.5%
9/7/2021 200.88 1.3% 68.39 1.6%
9/14/2021 203.81 1.5% 70.21 2.7%
9/21/2021 203.13 (0.3%) 69.83 (0.5%)
9/28/2021 203.54 0.2% 70.39 0.8%
10/5/2021 201.58 (1.0%) 71.12 1.0%
10/12/2021 201.01 (0.3%) 70.92 (0.3%)
10/19/2021 199.52 (0.7%) 70.04 (1.2%)
10/26/2021 199.23 (0.1%) 72.25 3.2%
11/2/2021 197.53 (0.9%) 71.63 (0.9%)
11/9/2021 201.48 2.0% 69.70 (2.7%)
11/16/2021 207.66 3.1% 71.14 2.1%
11/23/2021 206.88 (0.4%) 70.02 (1.6%)
11/30/2021 206.96 0.0% 74.04 5.7%
12/7/2021 206.77 (0.1%) 76.63 3.5%
12/14/2021 206.30 (0.2%) 75.70 (1.2%)
12/21/2021 207.23 0.5% 75.81 0.2%
12/28/2021 208.30 0.5% 75.44 (0.5%)
 Index % Change Stock % Change
Date Close Price Weekly Close Price Weekly
1/4/2022 208.56 0.1% 76.37 1.2%
1/11/2022 208.01 (0.3%) 78.92 3.3%
1/18/2022 207.57 (0.2%) 73.06 (7.4%)
1/25/2022 208.02 0.2% 75.78 3.7%
2/1/2022 209.25 0.6% 76.61 1.1%
2/8/2022 209.16 (0.0%) 76.73 0.2%
2/15/2022 209.73 0.3% 76.78 0.1%
2/22/2022 210.43 0.3% 77.35 0.7%
3/1/2022 208.87 (0.7%) 77.47 0.2%
3/8/2022 210.16 0.6% 78.11 0.8%
3/15/2022 210.47 0.1% 81.58 4.4%
3/22/2022 210.43 (0.0%) 78.22 (4.1%)
3/29/2022 209.67 (0.4%) 77.31 (1.2%)
4/5/2022 209.66 (0.0%) 79.70 3.1%
4/12/2022 212.12 1.2% 83.43 4.7%
4/19/2022 208.93 (1.5%) 82.25 (1.4%)
4/26/2022 211.62 1.3% 80.68 (1.9%)
5/3/2022 211.42 (0.1%) 75.36 (6.6%)
5/10/2022 211.19 (0.1%) 75.43 0.1%
5/17/2022 213.11 0.9% 72.80 (3.5%)
5/24/2022 212.98 (0.1%) 72.75 (0.1%)
5/31/2022 212.62 (0.2%) 72.92 0.2%
6/7/2022 213.31 0.3% 72.72 (0.3%)
6/14/2022 213.43 0.1% 75.01 3.2%
6/21/2022 212.99 (0.2%) 69.91 (6.8%)
6/28/2022 214.43 0.7% 72.90 4.3%
7/5/2022 211.14 (1.5%) 73.46 0.8%
7/12/2022 208.95 (1.0%) 71.74 (2.3%)
7/19/2022 210.97 1.0% 72.58 1.2%
7/26/2022 207.93 (1.4%) 67.47 (7.0%)
8/2/2022 208.82 0.4% 67.89 0.6%
8/9/2022 211.00 1.0% 68.53 0.9%
8/16/2022 210.86 (0.1%) 68.76 0.3%
8/23/2022 211.50 0.3% 67.32 (2.1%)
8/30/2022 212.32 0.4% 66.10 (1.8%)
9/6/2022 215.13 1.3% 66.44 0.5%
9/13/2022 215.01 (0.1%) 66.67 0.3%
9/20/2022 215.66 0.3% 66.67 0.0%
9/27/2022 216.48 0.4% 63.06 (5.4%)
10/4/2022 217.05 0.3% 60.64 (3.8%)
10/11/2022 216.34 (0.3%) 61.23 1.0%
10/18/2022 216.53 0.1% 61.47 0.4%
10/25/2022 217.45 0.4% 61.24 (0.4%)
11/1/2022 216.79 (0.3%) 61.05 (0.3%)
11/8/2022 216.03 (0.4%) 60.47 (1.0%)
11/15/2022 215.46 (0.3%) 62.79 3.8%
11/22/2022 217.13 0.8% 62.97 0.3%
11/29/2022 215.03 (1.0%) 62.54 (0.7%)
12/6/2022 216.52 0.7% 62.67 0.2%
12/13/2022 215.87 (0.3%) 62.48 (0.3%)
12/20/2022 217.02 0.5% 62.69 0.3%
12/27/2022 217.29 0.1% 63.14 0.7%
 Index % Change Stock % Change
Date Close Price Weekly Close Price Weekly
1/3/2023 218.02 0.3% 66.51 5.3%
1/10/2023 216.13 (0.9%) 62.87 (5.5%)
1/17/2023 217.18 0.5% 63.24 0.6%
Weighted Average Cost of Capital Cost Value ($MM) Weighting
Risk Free Rate 2.5%
Equity Risk Premium 6.0%
Beta 0.9085
Equity 8.0% 29,000 72.5%

Yield on Debt 5.8%

Tax Rate 32.0%
Debt 3.9% 11,000 27.5%

Weighted Average Cost of Capital (WACC) 6.8% 40,000 100.0%

R-squared 0.0899

10.0%

8.0%

6.0%

4.0%

f(x)==0.0898831852478735
R² 0.908517034072778
2.0%x + 0.00203834517597991

–
(4.0%) (3.0%) (2.0%) (1.0%) – 1.0% 2.0% 3.0% 4.0%
(2.0%)

(4.0%)

(6.0%)

(8.0%)

(10.0%)
Unlevering and Relevering Beta

All figures in USD thousands unless stated

Average Debt/ Levered Unlevered

Name Region Debt Equity Tax Rate Equity Beta 1
Beta 2

Company ABC North America 63,000 370,000 31.5% 17.0% 1.01 0.90
Company DEF North America 90,000 300,000 26.5% 30.0% 1.09 0.89
Company XYZ North America 75,000 125,000 30.0% 60.0% 1.25 0.88

Average 0.89

Target Company Debt/Equity Ratio 15.0%

Target Company Tax Rate 25.0%
Levered Beta 3
0.99

Levered beta is based on 5-year monthly data. ⁽¹⁾

Unlevered Beta = Levered Beta / (1 + (1 - Tax Rate) × Debt-to-Equity) ⁽²⁾
Levered Beta = Unlevered Beta x (1 + (1 - Tax rate) x (Debt-to-Equity)) ⁽³⁾
Terminal Value
Terminal Value using a Perpetual Growth Rate
Discount Rate 11.3%
Perpetual Growth Rate 2.0%

Terminal FCF
Years 1 2 3 4 5 5
Cash Flows 9,987 10,594 10,711 11,077 12,120 12,362
Terminal Value – – – – – 133,302
Total Cash Flows 9,987 10,594 10,711 11,077 12,120 133,302
Present Value of Cash Flows 8,976 8,556 7,774 7,225 7,105 78,139

Enterprise Value 117,775

Terminal Value using a Terminal EBITDA Multiple

Discount Rate 11.3%
Terminal EBITDA Multiple 7.0x

Terminal Value
Years 1 2 3 4 5 5
EBITDA 13,012 13,923 14,759 15,497 16,116 16,116
Cash Flows 9,987 10,594 10,711 11,077 12,120 –
Total Cash Flows 9,987 10,594 10,711 11,077 12,120 112,812
Present Value of Cash Flows 8,976 8,556 7,774 7,225 7,105 66,128

Enterprise Value 105,764

DCF; NPV vs XNPV; IRR vs XIRR
Manual Discounting
Discount Rate 11.3%

Periods for Discounting – 1 2 3 4 5

Dates 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026 12/31/2027
Cash Flows (20,000) 9,987 10,594 10,711 11,077 149,219
Discounted Cash Flows (20,000) 8,976 8,556 7,774 7,225 87,469

Sum of DCF 100,001

Periodic Cashflow Timing - NPV and XNPV, and IRR and XIRR are nearly equal
Discount Rate 11.3%

Dates 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026 12/31/2027

Cash Flows (20,000) 9,987 10,594 10,711 11,077 149,219

NPV 100,001
XNPV 99,968
IRR 78.9%
XIRR 78.8%

Random Cashflow Timing - NPV and XNPV are not equal / IRR and XIRR are not equal
Discount Rate 11.3%

Dates 1/1/2023 6/30/2023 2/12/2025 3/17/2027 6/30/2027 9/9/2027

Cash Flows (20,000) 9,987 10,594 10,711 11,077 149,219

NPV 100,001
XNPV 102,020
IRR 78.9%
XIRR 85.3%