Question
Company A needs to be valued for an IPO. Year 1 revenues are $85 million Year 2 revenues are $346 million Year 3 Revenues are
Company A needs to be valued for an IPO.
Year 1 revenues are $85 million Year 2 revenues are $346 million Year 3 Revenues are $533 million
Revenue growth is projected at 50% for the next 10 years
Long Term steady Cash Flow growth rate of 6% after 10th year
Working capital will grow 40% per year
Rf = 4%
Beta 1.2
Expected market return is 10%
COGS are 10.4% of revenue
R&D expenditures are 36.8% of revenue
Depreciation is 5.5% of revenue
EBITDA is 32% of revenue
Discount rate is 15%
Company A will issue an addition 5 million shares at IPO.
Based on the information provided, how would I calculate an IPO price?
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