Please fill out Assumptions with Formulas and Answers. Assumptions
Fantastic news! We've Found the answer you've been seeking!
Question:
Please fill out Assumptions with Formulas and Answers.
Assumptions | |||||||||||||||||
Historicals | Stage 1 | Stage 2 | |||||||||||||||
Assumption | 2017 | 2018 | 2019 | Average | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||
Revenue Growth | |||||||||||||||||
XYZ Tech | |||||||||||||||||
Operating Margin | |||||||||||||||||
Industry | |||||||||||||||||
XYZ Tech | |||||||||||||||||
Tax Rate | |||||||||||||||||
XYZ Tech | |||||||||||||||||
WC/Sales | |||||||||||||||||
Industry | |||||||||||||||||
XYZ Tech | |||||||||||||||||
CAPEX / Sales | |||||||||||||||||
Industry | |||||||||||||||||
XYZ Tech | |||||||||||||||||
Depreciation / CAPEX | |||||||||||||||||
Industry | |||||||||||||||||
XYZ Tech | |||||||||||||||||
Forecast Period Ending September | Total | ||||||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||
Operating Cash Flows | |||||||||||||||||
Revenue | 6,475.0 | ||||||||||||||||
Operating Income | |||||||||||||||||
Provision for Taxes | |||||||||||||||||
NOPAT | |||||||||||||||||
Change in Sales | |||||||||||||||||
Additional Working Capital Req's | |||||||||||||||||
CapEx | |||||||||||||||||
Depreciation | |||||||||||||||||
Net CapEx | |||||||||||||||||
Free Cash Flows | |||||||||||||||||
Present Value of Interim Cash Flows | |||||||||||||||||
Timing of Cash Flows | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5.5 | 6.5 | 7.5 | 8.5 | 9.5 | |||||||
Discount Rate | |||||||||||||||||
Discount Factors | |||||||||||||||||
Present Value of Cash Flows | |||||||||||||||||
Terminal Value Estimate | |||||||||||||||||
Terminal Cash Flow | |||||||||||||||||
Value of Perpetuity | |||||||||||||||||
Terminal Growth | |||||||||||||||||
Present Value of Perpetuity | |||||||||||||||||
Enterprise Value | |||||||||||||||||
Present Value of Cash Flows | |||||||||||||||||
Present Value of Perpetuity | |||||||||||||||||
Enterprise Value | |||||||||||||||||
Equity Value | |||||||||||||||||
Enterprise Value | |||||||||||||||||
Less Cash and Cash Equivalents | |||||||||||||||||
Less Debt | |||||||||||||||||
Equity Value |
Balance Sheet Item | 2016 | 2017 | 2018 | 2019 |
Cash and cash equivalents | 1,015.0 | 1,264.0 | 1,078.0 | 1,185.0 |
Marketable securities | 230.0 | 211.0 | 178.0 | 226.0 |
Accounts receivable, net | 578.0 | 610.0 | 630.0 | 695.0 |
Inventories, net | 302.0 | 320.0 | 508.0 | 705.0 |
Prepaid expenses | 100.0 | 109.0 | 57.0 | 77.0 |
Total current assets | 2,225.0 | 2,514.0 | 2,451.0 | 2,888.0 |
Property and equipment, net | 99.0 | 164.0 | 248.0 | 296.0 |
Goodwill | 0.0 | 289.0 | 289.0 | 289.0 |
Other assets | 303.0 | 279.0 | 321.0 | 310.0 |
Total assets | 2,627.0 | 3,246.0 | 3,309.0 | 3,783.0 |
Short-term debt | 0.0 | 440.0 | 136.0 | 201.0 |
Accounts payable | 350.0 | 483.0 | 503.0 | 552.0 |
Accrued liabilities | 98.0 | 135.0 | 203.0 | 398.0 |
Other current liabilities | 58.0 | 63.0 | 24.0 | 92.0 |
Total current liabilities | 506.0 | 1,121.0 | 866.0 | 1,243.0 |
Long-term debt, net | 852.0 | 940.0 | 1,114.0 | 1,125.0 |
Other long-term liabilities | 113.0 | 124.0 | 192.0 | 118.0 |
Total Liabilities | 1,471.0 | 2,185.0 | 2,172.0 | 2,486.0 |
Common stock, par value | 9.0 | 9.0 | 9.0 | 9.0 |
Additional paid-in capital | 2,123.0 | 2,334.0 | 2,650.0 | 2,464.0 |
Accumulated deficit | (976.0) | (1,282.0) | (1,522.0) | (1,176.0) |
Total stockholders' equity | 1,156.0 | 1,061.0 | 1,137.0 | 1,297.0 |
Total liabilities and stockholders' equity | 2,627.0 | 3,246.0 | 3,309.0 | 3,783.0 |
Income Statement Item | 2017 | 2018 | 2019 | 2020F | 2021F | 2022F |
Net revenue | 4,319.0 | 5,253.0 | 6,475.0 | 7,446.3 | 8,190.9 | 8,764.2 |
Cost of sales | (3,316.0) | (3,466.0) | (4,028.0) | |||
Gross margin | 1,003.0 | 1,787.0 | 2,447.0 | |||
Research and development | (1,008.0) | (1,196.0) | (1,434.0) | |||
Marketing, general and administrative | (466.0) | (516.0) | (562.0) | |||
Operating income (loss) | (471.0) | 75.0 | 451.0 | 880.0 | 890.0 | 1,156.0 |
Interest expense | (156.0) | (126.0) | (135.0) | |||
Other income (expense), net | 80.0 | 9.0 | 0.0 | |||
Income (loss) before income taxes and equity loss | (547.0) | (42.0) | 316.0 | |||
Provision for income taxes | (20.0) | (25.0) | (130.0) | |||
Net income (loss) | (567.0) | (67.0) | 186.0 | |||
XYZ Tech Statement of Cash Flows (select items) | ||||||
Cash Flow Statement Items | 2017 | 2018 | 2019 | 2020F | 2021F | 2022F |
Depreciation and amortization | 99.0 | 124.0 | 170.0 | |||
Purchases of property and equipment (CAPEX) | (97.0) | (133.0) | (189.0) |
Company | XYZ Tech |
Industy | Tech |
Valuation Date | 12/31/19 |
Business Activities | VR Solutions |
Shares Outstanding (millions) | 550.00 |
Risk Free Rate | 2.5% |
Tax Rate | 25.0% |
Comparables | Revenues | Operating Income | Operating Margin | ||||||
2017 | 2018 | 2019 | 2017 | 2018 | 2019 | 2017 | 2018 | 2019 | |
VR Comp 1 | 2,950 | 4,316 | 4,582 | 165 | 347 | 345 | 5.58% | 8.05% | 7.53% |
VR Comp 2 | 2,238 | 2,408 | 2,731 | 426 | 493 | 539 | 19.01% | 20.47% | 19.72% |
VR Comp 3 | 71,293 | 76,137 | 84,048 | 9,914 | 12,189 | 11,653 | 13.91% | 16.01% | 13.86% |
VR Comp 4 | 6,087 | 6,614 | 7,159 | 598 | 732 | 804 | 9.82% | 11.07% | 11.23% |
VR Comp 5 | 3,021 | 3,347 | 3,489 | 169 | 230 | 249 | 5.58% | 6.88% | 7.12% |
VR Comp 6 | 3,975 | 4,756 | 5,162 | 555 | 692 | 709 | 13.95% | 14.54% | 13.74% |
Median | 11.86% | 12.81% | 12.48% | ||||||
Comparables | Shares Outstanding | Share Price | Earnings Per Share | Total Debt | Book Equity | Historical WC / Sales | Historical CAPEX / Sales | Historical Depreciation / CAPEX | |
VR Comp 1 | 756.76 | 10.46 | 0.70 | 9,776.17 | 13,664.25 | 12.0% | 3.0% | 88.2% | |
VR Comp 2 | 93.95 | 111.52 | 8.31 | 1,518.80 | 3,278.20 | 18.6% | 2.7% | 82.6% | |
VR Comp 3 | 1,050.00 | 45.60 | 0.90 | 24,125.00 | 26,187.50 | 15.7% | 4.2% | 86.4% | |
VR Comp 4 | 84.42 | 118.56 | 8.40 | 1,901.20 | 1,851.80 | 23.9% | 5.3% | 92.6% | |
VR Comp 5 | 49.87 | 81.46 | 4.26 | 1,852.10 | 1,778.15 | 21.4% | 1.9% | 89.4% | |
VR Comp 6 | 165.00 | 64.20 | 4.12 | 2,706.50 | 3,059.75 | 14.2% | 3.3% | 77.3% |
Related Book For
Principles Of Taxation For Business And Investment Planning 2020
ISBN: 9781259969546
23rd Edition
Authors: Sally Jones, Shelley Rhoades Catanach
Posted Date: