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Posted on Jul 18, 2024

Under the Base Case and using precedent trading metrics and 2021E amounts, what is the implied enterprise value if the median P/E ratio is used

Under the Base Case and using precedent trading metrics and 2021E amounts, what is the implied enterprise value if the median P/E ratio is used as the basis for valuation? $50,171; $93,963; $86,340; $80,171

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Model Inputs and Assumptions General Assumptions Forecast Scenario Transaction Date Fiscal Year-End Days Per Year 01/08/2021 31/12/2021 365 Current Capitalization Cash-on-Hand PP&E Total Debt $5,000 $60,000 $35,000 $100,000 Total Equity Valuation Assumptions Tax Rate Perpetual Growth Rate EBITDA Exit Multiple 28% 2% 8.5x Risk-Free Rate Equity Risk Premium Interest Rate 3% 5% 4% Investment Amount $105,000 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E 25 Base Case Income Statement Assumptions Sales Revenue Cost of Sales SG&A Expense Depreciation Expense $36.000 ($21,600) ($5,400) ($3,600) $38,160 ($22,896) ($5,724) ($3,816) $40.450 ($24,270) ($6,067) ($4,045) $42.877 ($25,726) ($6,431) ($4,288) $45,449 ($27,270) ($6,817) ($4,545) $48,176 ($28,906) ($7,226) ($4,818) $51,067 ($30,640) ($7,660) ($5,107) $54,131 ($32,478) ($8,120 ($5,413) $57,379 ($34,427) ($8,607) ($5,738) $60,821 ($36,493) ($9,123) ($6,082) 27 28 29 30 31 32 33 34 35 36 37 38 39 Other Assumptions Change in Non-Cash Working Capital Capital Expenditures Debt Issuance (Repayment) Dividends Share Issuance (Buy-Back) ($720) $5,000 $0 $0 $0. ($763) $5,075 $0 $0 $0 ($809) $5,151 $0 $0 $0 ($858) $5,228 $0 $0 $0 ($909) $5,307 ($3,000) $0 $0 ($964) $5,386 ($3,000) $0 ($1,021) $5,467 SO $0 $0 ($1,083) $5,549 $0 $0 $0 ($1,148) $5,632 $0 $0 $0 ($1,216) $5,717 ($2,000) SO $0 $0 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E Balance Sheet Items PP&E Schedule PP&E, Opening Balance Capital Expenditures Depreciation Expense PP&E, Ending Balance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Debt Schedule Total Debt, Opening Balance Issuance (Repayment) Total Debt, Ending Balance Interest Expense $0 $0 $0 $0 50" $0 $0 $0 $0 $0 Equity Schedule Total Equity, Opening Balance Net Income Dividends Share Issuance (Buy-Back) Total Equity, Ending Balance $0 $0 $0 SO $0 $0 $0 $0 $0 $0 Income Statement Sales Revenue Cost of Sales Gross Profit $0 $0 $0 $0 $0 $0 $0 $0' $0 $0 $0 $0 $0 $0' $0 $0 $0' $0 $0 $0' $0 $0' $0 $0 $0' $0 $0 $0 $0 $0 $0" $0 $0" $0 $0 $0' $0 $0 $0' $0 $0" $0 $0 $0 $0' $0 $0' $0' $0 $0 SG&A Expense Depreciation Expense Interest Expense Income Before Income Taxes Income Taxes Net Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Comparable Trading Metrics Company Name Transaction 1 Transaction 2 Transaction 3 Transaction 4 Transaction 5 Median Transaction Value [S] $150,000 $200,000 $80,000 $110,000 $96,000 Net Debt S] $15,669 $35,263 $11,247 $14,884 $5,623 Financial Data EBITDA Earnings [S] [S] $17,654 $8,231 $15,345 $7,917 $6,589 $3,567 $11,256 $5,623 $9.932 $5,188 Transaction Multiples EBITDA Earnings [x] [x] 8.5x 18.2x 13.0x 25.3x 12.1x 22.4x 9.8x 19.6x 9.7x 18.5x 9.8x 19.6x Comparable Trading Metrics Company Name 2.8% Company A Company B Company C Company D Company E Median Price {$/sh.] $58.23 $71.54 $66.21 $45.68 $26.78 Market Data Market Cap Net Debt IS] [$] $168,041 ($2,719) $123,883 ($7,920) $10.326 $5,301 $11,618 $5,385 $964 $42 EV [S] $165,322 $115,963 $15,627 $17,003 $1,006 Financial Data (2021E) Sales EBITDA Earnings [S] [S] (9) $58,887 $16,523 $7,381 $56,415 $11,324 $5,618 $4,569 $1,515 $520 $5,512 $1,725 $487 $386 $97 $41 Valuation (20215) EV/Sales EV/EBITDA [x] 10.0x 2.1x 10.2x 3.4x 10.3x 3.1x 9.9x 2.6x 10.4x 10.2x P/E [x] 22.8x 22.1x 19.9x 23.9x 23.5x 22.8x Model Inputs and Assumptions General Assumptions Forecast Scenario Transaction Date Fiscal Year-End Days Per Year 01/08/2021 31/12/2021 365 Current Capitalization Cash-on-Hand PP&E Total Debt $5,000 $60,000 $35,000 $100,000 Total Equity Valuation Assumptions Tax Rate Perpetual Growth Rate EBITDA Exit Multiple 28% 2% 8.5x Risk-Free Rate Equity Risk Premium Interest Rate 3% 5% 4% Investment Amount $105,000 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E 25 Base Case Income Statement Assumptions Sales Revenue Cost of Sales SG&A Expense Depreciation Expense $36.000 ($21,600) ($5,400) ($3,600) $38,160 ($22,896) ($5,724) ($3,816) $40.450 ($24,270) ($6,067) ($4,045) $42.877 ($25,726) ($6,431) ($4,288) $45,449 ($27,270) ($6,817) ($4,545) $48,176 ($28,906) ($7,226) ($4,818) $51,067 ($30,640) ($7,660) ($5,107) $54,131 ($32,478) ($8,120 ($5,413) $57,379 ($34,427) ($8,607) ($5,738) $60,821 ($36,493) ($9,123) ($6,082) 27 28 29 30 31 32 33 34 35 36 37 38 39 Other Assumptions Change in Non-Cash Working Capital Capital Expenditures Debt Issuance (Repayment) Dividends Share Issuance (Buy-Back) ($720) $5,000 $0 $0 $0. ($763) $5,075 $0 $0 $0 ($809) $5,151 $0 $0 $0 ($858) $5,228 $0 $0 $0 ($909) $5,307 ($3,000) $0 $0 ($964) $5,386 ($3,000) $0 ($1,021) $5,467 SO $0 $0 ($1,083) $5,549 $0 $0 $0 ($1,148) $5,632 $0 $0 $0 ($1,216) $5,717 ($2,000) SO $0 $0 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E Balance Sheet Items PP&E Schedule PP&E, Opening Balance Capital Expenditures Depreciation Expense PP&E, Ending Balance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Debt Schedule Total Debt, Opening Balance Issuance (Repayment) Total Debt, Ending Balance Interest Expense $0 $0 $0 $0 50" $0 $0 $0 $0 $0 Equity Schedule Total Equity, Opening Balance Net Income Dividends Share Issuance (Buy-Back) Total Equity, Ending Balance $0 $0 $0 SO $0 $0 $0 $0 $0 $0 Income Statement Sales Revenue Cost of Sales Gross Profit $0 $0 $0 $0 $0 $0 $0 $0' $0 $0 $0 $0 $0 $0' $0 $0 $0' $0 $0 $0' $0 $0' $0 $0 $0' $0 $0 $0 $0 $0 $0" $0 $0" $0 $0 $0' $0 $0 $0' $0 $0" $0 $0 $0 $0' $0 $0' $0' $0 $0 SG&A Expense Depreciation Expense Interest Expense Income Before Income Taxes Income Taxes Net Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Comparable Trading Metrics Company Name Transaction 1 Transaction 2 Transaction 3 Transaction 4 Transaction 5 Median Transaction Value [S] $150,000 $200,000 $80,000 $110,000 $96,000 Net Debt S] $15,669 $35,263 $11,247 $14,884 $5,623 Financial Data EBITDA Earnings [S] [S] $17,654 $8,231 $15,345 $7,917 $6,589 $3,567 $11,256 $5,623 $9.932 $5,188 Transaction Multiples EBITDA Earnings [x] [x] 8.5x 18.2x 13.0x 25.3x 12.1x 22.4x 9.8x 19.6x 9.7x 18.5x 9.8x 19.6x Comparable Trading Metrics Company Name 2.8% Company A Company B Company C Company D Company E Median Price {$/sh.] $58.23 $71.54 $66.21 $45.68 $26.78 Market Data Market Cap Net Debt IS] [$] $168,041 ($2,719) $123,883 ($7,920) $10.326 $5,301 $11,618 $5,385 $964 $42 EV [S] $165,322 $115,963 $15,627 $17,003 $1,006 Financial Data (2021E) Sales EBITDA Earnings [S] [S] (9) $58,887 $16,523 $7,381 $56,415 $11,324 $5,618 $4,569 $1,515 $520 $5,512 $1,725 $487 $386 $97 $41 Valuation (20215) EV/Sales EV/EBITDA [x] 10.0x 2.1x 10.2x 3.4x 10.3x 3.1x 9.9x 2.6x 10.4x 10.2x P/E [x] 22.8x 22.1x 19.9x 23.9x 23.5x 22.8x