Corporate Finance Dr.
Ridha Esghaier
Unlevered Free Cash Flow Schedule
All figures in USD thousands unless stated 2020A 2021A 2022A 2023F 2024F 2025F 2026F 2027F
PROFIT METRICS
EBITDA Growth 5.4% 7.3% 7.5% 7.0% 6.0% 5.0% 4.0%
EBITDA 16,247 17,128 18,379 19,757 21,140 22,409 23,529 24,470
Tax Depreciation 2,960 3,196 3,452 3,700 3,700 3,700 3,700 3,700
Operating Profit 13,287 13,932 14,927 16,057 17,440 18,709 19,829 20,770
Tax Rate 18% 16% 16% 17% 17% 17% 17% 17%
Current Tax 2,458 2,270 2,358 2,730 2,965 3,181 3,371 3,531
UNLEVERED FREE CASH FLOW
EBITDA 19,757 21,140 22,409 23,529 24,470
Current Taxes (2,730) (2,965) (3,181) (3,371) (3,531)
Capital Expenditure 1
(3,700) (3,700) (3,700) (3,700) (3,700)
Cash from Working Capital (100) (100) (100) (100) (100)
Unlevered Free Cash Flow 13,228 14,376 15,428 16,358 17,140
Capital expenditure has been set equal to tax deprecia
Discounted Cash Flow Schedule
All figures in USD thousands unless stated Valuation Discrete Forecast
(YY-MM-DD) (YY-MM-DD) (YY-MM-DD) (YY-MM-DD) (YY-MM-DD) (YY-MM-DD)
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23/01/01 23/12/31 24/12/31 25/12/31 26/12/31 27/12/31
UNLEVERED FREE CASH FLOW
13,228 14,376 15,428 16,358 17,140
ASSUMPTIONS CASH FLOW PROFILES
First Year of Forecast 2023 Discrete Forecast 13,228 14,376 15,428 16,358 17,140
Terminal Growth Rate 2.0% Terminal Value 2 – – – – 153,454
WACC 1 13.5% Total Cash Flow 13,228 14,376 15,428 16,358 170,594
ENTERPRISE VALUE EQUITY VALUE PER SHARE
PV of Discrete 52,322 39% NPV(WACC;UFCF1:UFCF5) Equity Value 115,151
PV of Terminal 81,470 61% NPV(WACC;TV1:TV5) Shares Outstanding (FD 000) 34,200
Enterprise Value 133,793 100% Equity Value (USD/sh) 3.37
EQUITY VALUE PREMIUM (DISCOUNT)
Enterprise Value 133,793 Equity Value (USD/sh) 3.37
Less: Net Debt (18,642) Current Price (USD/sh) 2.71
Equity Value 115,151 Premium (Discount) 24.2%
WACC = Weighted Average Cost of Capital. ⁽¹⁾
The growing perpetuity method was used to calculate the terminal value. ⁽²⁾
Sensitivity Analysis
All figures in USD thousands unless stated
Terminal Growth Rate 2.0% Shares Outstanding (FD 000) 34,200
WACC 1 13.5% Current Price ($/sh) 2.71
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Enterprise Value 133,793
Net Debt 18,642
ENTERPRISE VALUE 2
EQUITY VALUE PER SHARE
Terminal Growth Rate Terminal Growth Rate
133,793 1.0% 1.5% 2.0% 2.5% 3.0% 1.0% 1.5% 2.0% 2.5% 3.0%
11.5% 11.5% 3.92 #VALUE! #VALUE! #VALUE! #VALUE!
12.5% 12.5% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
WACC
WACC
13.5% 13.5% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
14.5% 14.5% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
15.5% 15.5% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
EQUITY VALUE PREMIUM (DISCOUNT) TO CURRENT PRICE
Terminal Growth Rate Terminal Growth Rate
1.0% 1.5% 2.0% 2.5% 3.0% 1.0% 1.5% 2.0% 2.5% 3.0%
11.5% 133,968 #VALUE! #VALUE! #VALUE! #VALUE! 11.5% 44.5% #VALUE! #VALUE! #VALUE! #VALUE!
12.5% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 12.5% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
WACC
WACC
13.5% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 13.5% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
14.5% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 14.5% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
15.5% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 15.5% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
WACC = Weighted Average Cost of Capital. ⁽¹⁾
This table requires the workbook calculation to be set to automatic to update. ⁽²⁾
Data Table
1- Enter the formula of the Enterprise Value in the right corner of the table (then we can Hide it by changing the Font Color)
2- Select the hole table with the formula in the corner
3- Press Alt + A + W + T or Alt + D + T (to open the Data Table)
4- Put the Cell to change (input of Terminal Growth Rate in the initial Table) by the Inputs in Row in Row input Cell ( use the firs
5- Put the Cell to change (WACC in the initial Table) by the Inputs in Column in Column Cell
6- Once the Enterprise Value Data table is completed, complete the other sensitivity tables by simply entering the required formula
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Check in Excel Options (Alt + F + T) that Formulas / Workbook Calculation/ is set at automatic
use the first a
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Dr. Ridha Esghaier
Term
2.5%
25,082
3,700
21,382
17%
3,635
25,082
(3,635)
(3,700)
(100)
17,647
diture has been set equal to tax depreciation. ⁽¹⁾
Term
(YY-MM-DD)
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28/12/31
17,647
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w in Row input Cell ( use the first assumption)
ly entering the required formula in the first Cell then copy and paste Formula (Alt E+S+F) in the other cells of the table
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use the first assumption
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