Historical earnings Growth
41
39 -0.04878 0.95122
47 0.205128 1.205128
39 -0.17021 0.829787
55 0.410256 1.410256
Average growth 9.9%
Geometric average growth 7.6%
Baltran
Baltran
Growth 7.6%
Tax rate 16%
Initial Revenues 1400
Earnings 55
Interest costs 18.4
Profit margin 5.2%
COGS 94.76%
WC 10%
Beta 1.20
Cost of debt 9.00%
Equity Market Value 133.756
Debt Market Value 218
T+1
Revenues 1507
-COGS 1428
-Depreciation 9
=EBIT 70
EBIT(1-Tax) 59
+Depreciation 9
-CapEx 0
-Change in WC -11
-Free Cash Flow to Firm 57
Cost of Equity (from CAPM) 16.40%
Cost of Debt 7.56%
WACC 10.92%
Firm Value 1731
Less Debt -218
Equity Value 1513
PE 28
Increase
Risk free 8%
Country risk premium 0%
Mkt risk premium 7.00%