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Using the following information, estimate the total value of this privately held company. Estimates of Year 1 (next year) financial performance (Unit: $ million) Revenue

Using the following information, estimate the total value of this privately held company.

Estimates of Year 1 (next year) financial performance (Unit: $ million)

Revenue

900

Costs of goods sold

100

Selling, general and administrative expenses including R&D

200

Depreciation

50

Property and equipment

1100

Working capital

150

Current (Year 0) financial data (Unit: $ million)

Property and equipment

950

Working capital

110

Other information for valuation

Operating tax rate

21%

The estimated growth rate of cash flows

(Assume that this growth rate is constant)

6%

This company has no debt.

Assume that 14% is the required return on this companys assets.

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