Question: Could you help with how to determine terminal value? Step by step instructions would be helpful. The Walt Disney Company Project Income Statements 2023-2027 millions
Could you help with how to determine terminal value? Step by step instructions would be helpful.
The Walt Disney Company Project Income Statements 2023-2027 millions Financial Statements 2023 2024 2025 2026 2027 Terminal Total Revenue (or Sales) $ 94,137.64 $ 110,329.31 $ 131,347.04 $ 154,989.51 $ 183,197.60 #VALUE! Estimated Annual Revenue Growth Rate 13.80% 17.20% 19.05% 18.00% 18.20% [insert value] Gross Profit $ 32,006.80 $ 38,615.26 $ 48,598.41 $ 55,796.22 65,951.14 #VALUE! Estimated Annual Gross Profit Margin 34.00% 35.00% 37.00% 86.00% 36.00% [insert value] Sales, General, and Administrative Expenses (SG&A) $ 20,710.28 $ 24,272.45 $ 32,836.76|$ 41,847.17 $ 49,463.35 #VALUE! Estimated Annual SG&A (% of Sales) 22.00% 22.00% 25.00% 27.00% 27.00% [insert value] Other Income (Expense) *If expense is reported, enter as a negative number. Interest Income / (Expense) $ (1,883.00) $ (2,207.00) $ (2,627.00) $ (3,100.00) (3,664.00) [insert value] Other Income (Expense) (2,824.00) $ (3,309.00) $ (3,940.00) $ 5,166.00) $ (5,495.00) [insert value] Net Income (Loss) S 6,589.52 8,826.81 |$ 9,194.65 $ 5,683.06 7,328.78 #VALUE!The Walt Disney Company Development of Discount Rate and Capitalization Rate Table 2022 Rate Note Risk-free long term U.S. Government bond rate 2.60% A Equity risk premium 6.00% B Industry premium estimate 1.50% 3.00% D Cost of equity (Discount Rate) 13.10% Sum of A - D above Less: Long-term sustainable growth rate -2.50% E Capitalization Rate 10.60% NOTES (A) Yield on the twenty-year U.S. Treasury bond as of December 31, 20XX, per the U.S. Treasury (B) Long-horizon expected return of large stocks over risk free securities, U.S. Equity Risk Premium (6.0%) (C) SIC code XX, 1.5% (D) Appraiser's judgement concerning company-specific risk (E) Estimated long-term growth rate based on inflation, Federal Reserve Bank of Philadelphia
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