Sr. No.

Particulars
1 Revenue Growth
2 Gross Margin
3 SG&A
4 Depreciation/PPE
5 NWC Turnover
6 PPE* Turnover
7 Tax Rate
8 Discount Rate (WACC)
9 Terminal Growth Rate

Year 0

4.4
1.8
35%
8%
4.50%

Year 1
2.50%
33%
25%
10%
5
1.8

The Revenues in Year 0 are $140 mn

*Gross PPE, i.e., Gross Fixed assets

Revenue
Gross Margin
SGA
PPE
NWC
DEP
DPPE
DNWC
EBIT
EBT
FCF
Terminal Value
EV

140

143.5
47.355
35.875
77.77778 79.72222
31.81818
28.7
7.972222
1.944444
-3.118182
3.507778
2.280056
11.42602
$309.65

Year 2 Year 3
###
6.50%
34%
35%
25%
25%
10%
10%
5.2
5.5
1.9
2

149.958
50.9856
37.4894
78.925
28.838
7.8925
-0.79722
0.13798
5.60368
3.64239
12.1941

159.70474
55.896658
39.926184
79.852369
29.037225
7.9852369
0.9273688
0.1992442
7.9852369
5.190404
12.049028

Year 4
5.50%
36%
24%
10%
5.8
2

168.4885
60.655859
40.43724
84.244249
29.049741
8.4244249
4.3918803
0.012516
11.794195
7.6662267
11.686255

Year 5
4.50%
36%
23%
10%
6
2
PPE - Property, plant and Equipment

176.0705
63.38537
40.49621
88.03524
29.34508
8.803524
3.790991
0.295339
14.08564
9.155665
13.87286
414.2039260766

Sr. No. Particulars

1 Revenue Growth
2 Gross Margin
3 SG&A
4 Depreciation/PPE
5 NWC Turnover
6 PPE Turnover*
7 Tax Rate
8 Discount Rate
9 Terminal Growth Rate

Year 0

4.4
1.8
35%
8%
4.50%

Year 1
2.50%
33%
25%
10%
5
1.8

The Topline is $140 mn

10 Revenue
11 Cost of Goods Sold
12 Gross profit
13 Sales, General & Admin Exps
14 Dep
15 Operating Profit
16 Net Operating Profit after tax

17 Net Working Capital

18
19 PPE

Cash flows
20 NOPAT
21 Add. Dep
22 Less. Capex
23 Less. Increase in NWC
24 Free Cash Flow
25 Year 6 Steady State FCF
26 Terminal Value
P.V. of Terminal Value
Discounted Cash Flow
Enterprise Value

Calculation (Sr. no referenYear 0

Year 1
140
143.5
`12-10
`10x2
47.355
`10x3
35.875
`19x4
7.972222
`12-13-14
3.507778
`15(1-7)
2.280056

`10/5

31.81818

28.7

77.77778 79.72222

16
14

2.280056
7.972222
1.944444
-3.118182
11.42602

(Change in 19)
Change in 17
`20+21-22-23
Ref. 9
25/ (8-9)

10.57964
309.6492

Year 2
Year 3
Year 4
Year 5
4.50%
6.50%
5.50%
4.50%
34%
35%
36%
36%
25%
25%
24%
23%
10%
10%
10%
10%
5.2
5.5
5.8
6
1.9
2
2
2

Year 2
Year 3
Year 4
Year 5
149.9575 159.7047 168.4885 176.0705
50.98555
37.48938
7.8925
5.603675
3.642389

55.89666
39.92618
7.985237
7.985237
5.190404

60.65586
40.43724
8.424425
11.79419
7.666227

63.38537
40.49621
8.803524
14.08564
9.155665

28.83798 29.03723 29.04974 29.34508

Revenue/NWC Turnover

78.925 79.85237 84.24425 88.03524 *This is gross PPE

3.642389
7.8925
-0.797222
0.137981
12.19413

5.190404
7.985237
0.927369
0.199244
12.04903

7.666227
8.424425
4.39188
0.012516
11.68626

9.155665
8.803524
3.790991
0.295339
13.87286
14.4971374127
414.2039260766
261.0187335492

10.4545 9.564907 8.589746 9.441635

Asset turnover = Revenue

evenue/NWC Turnover

Because, NWC Turnover = Revenue/NWC

sset turnover = Revenue/Asset Asset = Revenue/Asset Turnover