Now is the second month of your internship at the investment bank. You are well trained in calculating FCF and you are now familiar with different valuation methods. You want to apply what you have learned to calculate the enterprise value of the firm called SoulBiking. SoulBiking is operating in the health and fitness space. Its closest competitor is SoulCycling, another indoor fitness club that provides membership classes.

You have applied the FCF formulas and calculated the following FCFs for SoulBiking: (units are all in $Million)

Year (nth) 1 2 3 4 5 6 Year 2018 2019 2020 2021 2022 2023 FCF 30 35 38 40 44 50 You assume that the free cash flows will grow at 3% from 2023 on. The cost of capital is assumed to be 7%.

Besides using the growth method and discounting future cash flows, you are also interested in using the multiples approach. SoulBikings EBIT in year 2017 and 2018 (forecast) are 20 and 140 respectively.

Heres some related information you gathered for SoulCycling:

SoulCycling data as of end of 2017 Market Cap 1200 Debt 300 Cash 100 Sales in 2017 800 EBIT in 2017 -10 EBIT in 2018 (forcast) 160

What percentage of the EV computed in the previous question is contributed by the terminal value component?

Input the percentage of the EV: ____% (discard any decimal points. For example, if your computation gives 71.2%, then enter 71 here.)