Current Ye 1 2

2011 2012 2013 2014 2015 2016 2017

Net Sales 63 65 76 92 100 125 156
Less:COGS 38.76 40.18 47.72 60.43 64.32
Gross Prof 24.04 25.14 28.77 31.72 35.44
S&A 10.35 11.78 13.97 16.78 18.05
Non-operat 0.36 0.97 0.65 1.1 1.02
EBIT 14 14 15 16 18 31 39
Interest 12 12

PBT 19 27
Less: Tax 7.25 7.65 7.6 8 9.1 10 13
PAT 6.8 6.68 7.85 8.04 9.31 10 13
Add: Dep 7.5 9.4
CFO 17 23
Less: Change in Capex 0 0
Less: Change in NWC 1 1
Net Cash Flow 16 22
Repayment
FCFE (cash flow available to owners) 16 22

Loan Repayment Assumption: Paying Principal in last 4 yrs (equal instalments of 25)
Non-operating surplus where to put? Not in EBIT Value of shares expected after
FCFF=Net Income+Dep+Int(1-t)-Capex-Change in NWC
Tax % assumed to be 50%

NPV = PV of Interest + PV of Repayment + PV of shares - Investment = 0

0.25 1 2 3 4 5 6 7
PVF 1 1 1 1 1 1 1
PV of Inter 12 12 12 12 12 12 12
PV of Repayment 25
Value of S -102

0.35 1 2 3 4 5 6 7
PVF 1 1 1 1 1 1 1
PV of Inter 12 12 12 12 12 12 12
PV of Repayment 25
Value of S -102
 3 4 5 6 7 8 9 10
2018 2019 2020 2021 2022 2023 2024 2025
195 244 304 381 476 595 743 929

49 61 76 95 119 149 186 232

12 12 12 12 12 9 6 3
100 75 50 25
37 49 64 83 107 140 180 229
18 24 32 42 53 70 90 115
18 24 32 42 53 70 90 115
11.8 14.5 18.2 22.9 28.6 35.7 44.6 0
30 39 50 64 82 106 135 115
0 0 0 0 0 0 0 0
1 2 4 5 6 8 10 0
29 37 47 60 76 98 124 115
25 25 25 25
29 37 47 60 51 73 99 90

Value of shares expected after 5 years?

8 9 10
1 1 1
9 6 3 102
25 25 25 100

8 9 10
1 1 1
9 6 3 102
25 25 25 100