year 0 year 1 year 2 year 3
Revenues 10% 4000 4400 4840 5324
EBIT 10% 500 550 605 665.5
Corporate tax rate (for all time) 40% 200 220 242 266.2
EBIT(1-tax) 300 330 363 399.3
Capital expenditure 10% 300 330 363 399.3
Depreciation 10% 200 220 242 266.2
Net working capital as a percentage of reven 30% 1200.0 1320.0 1452.0 1597.2
change in NWC 120.0 132.0 145.2
FCFF 100.0 110.0 121.0
PV of FCFF ₹ 86.96 ₹ 83.18 ₹ 79.56
1 2 3
cost of debt 15%
after tax cost of debt 9.00%
Risk free rate 13%
Market risk premium 6%
Equity beta 1.333
cost of equity 20.99800%
debt to equity 1
debt/total capital 0.5
equity/total capital 0.5
WACC 15.00%
Enterprise value ₹ 2,587.29
year 4 year 5 terminal year
5856.4 6442.04 6828.5624 6%
732.05 805.255 853.5703 6%
292.82 322.102 341.42812
439.23 483.153 512.14218
439.23 483.153
292.82 322.102
1756.9 1932.6 2048.6
159.7 175.7 116.0
133.1 146.4 396.2 4402.1 terminal value
₹ 76.10 ₹ 72.79 ₹ 2,188.70
4 5
15%
9.00%
12%
7%
100%
1.00
19.0000%
2/3
0.4
0.6
15.00%
growth rate base year
high transition stable year 0
Revenues 25% annualy -3% 10% 1000
EBIT 25% annualy -3% 10% 250
Corporate tax rate (for all time) 40% 40% 40% 100.00
EBIT(1-tax) 150.00
Capital expenditure 25% annualy -3% 10% 295
Depreciation 25% annualy -3% 10% 240
Net working capital as a percentage of reven 20% 20% 20% 200
change in NWC
FCFF
PV of FCFF
cost of debt
after tax cost of debt
Risk free rate
Market risk premium
Equity beta
cost of equity
debt to equity
debt/total capital
equity/total capital
WACC
Enterprise value 3512.61336
high growth transition period
year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year 9 year 10
1250 1562.5 1953.125 2441.406 3051.758 3723.145 4430.542 5139.429 5807.554 6388.31
312.5 390.625 488.2813 610.3516 762.9395 930.7861 1107.635 1284.857 1451.889 1597.077
125.00 156.25 195.31 244.14 305.18 372.31 443.05 513.94 580.76 638.83
187.50 234.38 292.97 366.21 457.76 558.47 664.58 770.91 871.13 958.25
368.75 460.9375 576.1719 720.2148 900.2686 1098.328 1307.01 1516.131 1713.229 1884.551
300 375 468.75 585.9375 732.4219 893.5547 1063.33 1233.463 1393.813 1533.194
250 312.5 390.625 488.2813 610.3516 744.6289 886.1084 1027.886 1161.511 1277.662
50 62.5 78.125 97.65625 122.0703 134.2773 141.4795 141.7773 133.6251 116.1511
68.75 85.94 107.42 134.28 167.85 219.42 279.42 346.47 418.09 490.74
60.3074408 66.12704 72.50823 79.5052 87.17736 100.8536 113.6566 124.7152 133.1833 138.3403
1 2 3 4 5 1 2 3 4 5
15% 14%
9.00% 8.4%
12% 11%
6% 6%
1.58 1.1
21.5% 17.6%
3:2 1:1
0.60 0.5
0.40 0.5
14.00% 13.00%
terminal year
stable growth
7027.141
1756.785
702.71
1054.07
2073.007
1686.514
1405.428
127.7662
539.81 8996.87 terminal value
2536.239
12%
7.2%
10%
6%
1.00
16.0%
0:1
0
1
16.00%
