Calculation of FCF ($ Million)

Operating Current Asset (OCA)

Operating Current Liabilties (OCL)
Net operating Working Capital (NOWC)
Net Plant and Equipment
Net Operating Capital
Investment in Operation Capital
NOPAT
Free Cash Flow
PV of FCF
Sum of PV of FCF
Terminal Value / Continuing Value
PV of Terminal Value
Value of Opertion
Value of Non Operating Asset
Company's Value
Value of Common Equity
No of Shares Outstanding
Internic value or Equity Value per Share
 1 2
Formula 2010 2011 2012
Total Current Asset - Marketable Sec. or Short-term Investments 272 320 352
Total Current Liabilities - Notes Payable or short term loans 60 70 77
NOWC = OCA -OCL 212 250 275
279 310 341
NOC= NOWC + Net Plant and Equiment 491 560 616
Investment in Operating Capital = Change in Net Operating Capital 69 56
EBIT * (1-tax rate) 44 51 33
FCF= NOPAT - Investment in Operating Capital 44 -18 -23
FCF/(1+WACC)^n 43.80 -16.24 -18.72
75.38
FCF * (1+g) / (Ke - g) or FCF Last Year * (1+g) / (WACC-g) 881.0
Terminal Value / (1+WACC)^n 526.61
Sum PV of FCF + Pv of Terminal Value 601.99
Marketable Secutries
Company Value = Value of Operations + Value of Non-Operating Assets
Value of Common Equity = Company Value – Debt – Preferred Equity
 3 4 4
2013 2014 Terminal Value
370 388 g 5%
81 85 wacc 10.84%
289 303
358 376
647 679
31 32 Additional Investment in Operating Capital
77 81 Earning
46 49 51
34.07 32.46

49*(1+J3)/(J4-J3)