2020 2021 2022 2023 2024

Profit 50,000 55,000 60,000 60,000 60,000

Seller’s Discretionary Earnings (SDE) 5,000 5,000 5,000 7,000 7,000
Depreciation 2,000 2,000 2,000 2,000 2,000
Working Capital 10,000 12,000 15,000 15,000 15,000
Change in Working Capital 0 2,000 3,000 0 0
Loans paid back 0 0 10,000 10,000 0
New loans taken 0 0 0 0 0
Free Cash Flow to Equity (FCFE) 57,000 60,000 54,000 59,000 69,000
Present Value of FCFE 49,565 45,369 35,506 33,733 34,305
Total Present Value of FCFE 198,478
Terminal Value 231,299
Present Value of Terminal Value 114,996
Business Value 313,000 (circa)

Cost of Equity 15%

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