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Need help with value of operations and estimated intrinsic value of equity Boston Beer Company Valuation Using Free Cash Flow (FCF) Model (Millions of $
Need help with value of operations and estimated intrinsic value of equity
| Boston Beer Company Valuation Using | ||||||
| Free Cash Flow (FCF) Model | ||||||
| (Millions of $ Except Per Share Values) | ||||||
| Fiscal Year | 2019 | 2020 | 2021 | 2022 Projection | 2023 Projection | 2024 Projection |
| Earnings Before EBIT | $ 145.00 | $ 244.00 | $ 73.00 | $ 282.76 | $ 333.67 | $ 395.34 |
| NOPAT=EBIT(1-Tax rate) | (2.80) | (2.99) | 0.39 | 0.39 | 0.39 | 0.39 |
| Net Operating Profit After Taxes (NOPAT) | $ 551.00 | $ 973.20 | $ 44.53 | $ 172.48 | $ 203.54 | $ 241.16 |
| Operating Current Assets (Cash+Accounts Receivables+Inventories). | $ 208.00 | $ 383.00 | $ 323.00 | $ 379.19 | $ 447.46 | $ 530.17 |
| (Subtract) Operating Current Liabilities (Accounts Payables+Accurals). | $ 111.00 | $ 173.00 | $ 107.00 | $ 125.61 | $ 148.23 | $ 175.63 |
| Net Operating Working Capital (NOWC) | $ 97.00 | $ 210.00 | $ 216.00 | $ 253.58 | $ 299.23 | $ 354.54 |
| (Add) Operating Long-Term Assets | $ 595.00 | $ 682.00 | $ 718.00 | $ 842.90 | $ 994.66 | $ 1,178.52 |
| Total Net Operating Capital | $ 692.00 | $ 892.00 | $ 934.00 | $ 1,096.48 | $ 1,293.89 | $ 1,533.06 |
| NOPAT | $ 551.00 | $ 973.20 | $ 44.53 | $ 172.48 | $ 203.54 | $ 241.16 |
| (Subtract) Net Investment In Total Operating Capital | $ (113.00) | $ (6.00) | $ (37.58) | $ (45.65) | $ (55.31) | |
| Free Cash Flow | $ 1,086.20 | $ 38.53 | $ 134.90 | $ 157.89 | $ 185.85 | |
| Assumptions | ||||||
| Weighted Average Cost of Captial (WACC) | 6.80% | |||||
| Long-Term Growth Rate | 4.80% | If based on projected growth: 17.39%, 18%, and 18.48% | ||||
| Net Present Value of Explicit FCF Forecast Period 2022-2024 | $417.30 | |||||
| 2019 | 2020 | 2021 | 2022 Projection | 2023 Projection | 2024 Projection | |
| Horizon Value for 2024 VHV=Vop,2024=[FCFt=185.85(1+.0480)]/0.0680-0.0480). | $ 9,738.54 | |||||
| Present Values of Free Cash Flows | $ 36.08 | $ 126.31 | $ 147.73 | $174.02 | ||
| Present Value of Horizon Value | $ 9,912.56 | |||||
| Value of Operations | $ 344.74 | |||||
| (Add) Short-Term Investments | $ - | $ - | $ - | $ - | ||
| Estimated Total Intrinsic Value | $ 344.74 | |||||
| (Subtract) All Debt (Long Term Debt and Added Line of Credit) | $ (148.00) | $ (195.48) | $ (252.92) | $ (323.52) | ||
| (Subtract) Preffered Stock | $ - | $ - | $ - | $ - | ||
| Estimated Intrinsic Value of Equity | $ 196.74 | |||||
| (Divide) Number of Shares | $ 2.40 | $ 2.40 | $ 2.40 | $ 2.40 | ||
| Estimated Intrinisic Stock Price | $ 168.93 | $ 336.15 | $ 352.84 | $ 367.97 |
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3rd Edition
076372758X, 9780763727581
