2020

Revenue 250,000,000
COGS 150,000,000
Gross profit 100,000,000
Operating expanses 40,000,000
EBITDA 60,000,000
Interest expense 5,000,000
Depreciation 7,000,000
Non-operating expense/income (3,000,000)
Net income 51,000,000

Company A Company B
Price 60 88
Book 28 40

P/B 2.14 2.20

Average P/B 2.17

book value of Boston techniques inc 800,000,000

market value by Multiplier Method 1,737,142,857

g for next 6 years 10%

g 6%
CAPEX 4,000,000
NWC bgn 25,000,000
NWC end 15,000,000
change in NWC (10,000,000)
wd 70%
we 30%
cost of debt 9%
cost of equity 15%
tax rate 30%
WACC 8.91%

FCF 50,100,000
0 1 2 3
2020 2021 2022 2023
FCF 50,100,000 55,110,000 60,621,000 66,683,100
PV 50,100,000 50,601,414 51,107,846 51,619,347
PV of DCF 311,307,103
PV of terminal value 1,937,314,660
EV 2,248,621,763

Answer There is a difference between 2 methods

511,478,905
 4 5 6
2024 2025 2026 Terminal Value
73,351,410 80,686,551 88,755,206 3,233,007,507
52,135,967 52,657,758 53,184,770 1,937,314,660