Question
You are creating a DCF for a company with the following year 5 (2024) financial information: ($ millions) Year 2024 Depreciation 50 EBIT 200 Capital
You are creating a DCF for a company with the following year 5 (2024) financial information: ($ millions)
Year 2024
Depreciation 50
EBIT 200
Capital Expenditures 90
Investment in NWC 15
Discount Rate 9%
Long Term Growth Rate 3%
Tax rate = 29%
You have calculated a year 5 Terminal Value which is based on a perpetuity of unleveredFree Cash Flow growing at the long-term growth rate of 3%. Using this Terminal Value calculation, what is the implied valuation multiple of Year 5 (2024) EBITDA?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the implied valuation multiple of Year 5 2024 EBITDA using the Terminal ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
