4. The price discussed by the two CEOs is $28M. You must value PAN Airways using free cash flows to see if this price is fair or not. C B Actual 2020 H 2021 4.25 8.564 D Projected 2022 2023 4096 8,907 9,263 2024 3895 9.615 Notes 8.219 2025 14% 9.942 1 2 Income Statement in '000 $) Operating Revenue growth rate 4 Total Operating Revenues 5 6 Wages, benefits, payroll support, mcentives 7 Auerat foc, incl hedging gains/losses 8 Aircraft maintenance rent 9 Landing fees and other rentals 10 Depreciation amortization 11 All other expenses Total Operating Expenses 2201 1.700 565 437 324 100 6,677 2,277 1.844 582 458 385 1 365 6,911 2.346 1.899 599 480 2,416 1.956 617 503 409 1.30 7.406 2,488 2015 636 527 421 1880 7.667 2,563 2.075 055 552 434 1.650 7.93 Increase at a yearly rate of Tocrease at a yearly rate of Increase at a yearly rate of Increase at a yearly rate of Increase at a yearly rate of Increase at a yearly rate of 30 304 09 296 30 0 197 1413 7,154 1.753 2,004 Increase at a yearly rate 5:09 120 1,857 (50 1,307 274 1,013 000 1197 1.045 ED 1,370 288 LORS 2:58 971 1,104 1.542 1,053 (75) (400) 1,067 1.154 224 242 8:43 912 Balance Sheet 1934 2015 1,249 1:30 615 672 199 4,020 4189 2011 2,999 6,831 T118 2,262 1461 753 M Operating Income 15 Total non-operating income (expense) 16 Income before taxes 17 Income tax expense (benefit) 18. Net Income 19 20 Cash and investments 21 Accounts receivable 22 Inventory and supplies, net 23 Other 24 Current Assets 25 Other 26 Total Assets 27 20 Bank Loan Payables 30 CPLTD Othet 32 Current Liabilities 33 LTD 4 Equity Total Liabilities & Equity 36 37 Working Capital Increase Operating Revenue growth rate 2.096 1154 099 308 4350 3.040 7.103 2.180 1.408 927 SO 4.53 3.165 7.609 2319 1511 180 12 4163 3-400 3.269 4.703 3028 7.01 Increase at Operation Reprowth rate 1,005 Pesto matce sheet balance 146 100 33 3.619 248 44 9 4,034 1.577 920 3,054 258 46 03 3.455 181 940 200 51 100 1.390 Increase Operating Revenue growth rate 2.399 269 49 101 2.810 1.733 2,800 7.403 50 103 3.129 1.734 3336 7.699 4911 7,091 1.629 LTD of psy CPLTD of current 6,02 Equity of proses yes plus net income of content yea 3.763 6,831 19 3,939 3,635 100% Excade Bank Loan 3.785 E F G H 2024 2025 TV A B 1 D PAN Airways Cash Flow Valuation 2 3 (in '000 S) 2021 2022 2023 4 Income before taxes 5 + Interest 6 Income before interest and taxes (EBIT) 7 8 EBIAT 9 Change in Working Capital 10 Change in Other assets 11 Free Cash Flow (FCE) 12 PV of FCF 13 - Existing Debt 14 = Value of equity 15 16 17 18 19 20 21 Prob I WACC Pob2Gate NV and RA Pro PAN Anand Proba PAN Airways valuation Prother Pro comodations
