Valuation Multiples

HPG Jsc. Balance sheet

Assets billions
Cash and cash equivalents -
Other current assets 250
PPE 800
Total 1,050
Liabilities
Short-term debt 50
Other current liabilities 100
Long-term debt 250
Common stock 250
Retained earnings 400
Total equity 650
Total 1,050

ABC Jsc. Cashflow statement

Change in non-cash working capital 300
Capital Expenditure (Capex) 150

Calculation:
I. Equity value 2,000
II. Enterprise value 2,300
III. Enterprise Value Ratio
(i) EV/Sales 2.3
(ii) EV/EBITDA 3.5
(iii) EV/EBIT 9.2
IV. Equity Value Ratio
(i) P/E 16.7
(ii) P/B 3.1
(iii) P/CF 28.6
- FCFF 150
- FCFE 70
ABC Jsc. Income Statement
Income Statement millions
Sales 1,000
Operating expenses (350)
EBITDA 650
Depreciation (400)
EBIT 250
Interest expenses (100)
Earning before taxes 150
Taxes (30)
Earning after taxes 120

Number of share 100,000

Share price 20,000
Valuation Multiples (BCTC 2021)
HPG Jsc. Balance sheet
Assets billions
Cash and cash equivalents 22,471
Other current assets 71,684
PPE 84,082
Total 178,237
Liabilities
Short-term debt 73,459
Other current liabilities
Long-term debt 13,996
Common stock
Retained earnings
Total equity 90,781
Total 178,237

HPG. Cashflow statement

Change in non-cash working capital 26,304
Capital Expenditure (Capex) 11,621

Calculation:
I. Equity value 132,577
II. Enterprise value 197,561
III. Enterprise Value Ratio
(i) EV/Sales 1.3
(ii) EV/EBITDA 4.8
(iii) EV/EBIT 5.0
IV. Equity Value Ratio
(i) P/E 3.8
(ii) P/B 1.5
(iii) P/CF (18.7)
- FCFF (5,073)
- FCFE (7,093)
HPG. Income Statement
Income Statement billions
Sales 153,991
Operating expenses 116,933
EBITDA 40,769 check 37,058 ok
Depreciation (1,186)
EBIT 39,583 check 39,583 ok
Interest expenses (2,526)
Earning before taxes 37,057
Taxes (2,536)
Earning after taxes 34,521 check 34,521

Number of share 5,814,785,700

Share price 22,800