inventory (60% OF SALES)

sales
PAT(8%)
EXPENSE
EBIT

COST OF CAPITAL
CALCULATION
CASH FLOW
PV OF CASH INFLOW FLOW
PV OF CASH OUTFLOW
INVENTORY EXTRA
NET CASH OUT FLOW
NOTE*
NOTE*

1200000
2000000
160000
800000

15%
32000
213333.33333333
150000
240000
390000

WORKING CAPITAL IS MISSING

HERE NET OUFLOW IS 390000 SO NATASHA CANNOT CO

Lets say 2021 cash flow will grow at terminal growth rate ( assume 7%)
after discounting all cash flow of 5 years
than deivided by no. of shares to find intrinsic value of share.

more cap ex means less valuation, more working capital means less valuation.

2/10 net 45 means supplier gave 45 days creditor or if u pay after 11 day ttill 45 day pa

#
#

if CL dec W.C inc but CASH FLOW dec. and operating cycle effect

ONLINE RETAIL
TOTAL
240000 1440000
400000 2400000
32000
192000
150000

S MISSING
S 390000 SO NATASHA CANNOT CONTUNUE ONLINE MARKET DUE TO LACK OF WORKIN CAPITAL.

rate ( assume 7%)

ital means less valuation.

if u pay after 11 day ttill 45 day pay the some amount, if you pay within 10 days you have to pay less ( eg pa

cycle effect

KIN CAPITAL.

u have to pay less ( eg paid wituin 10 days then instead of 100 pay 98