Get documents about "Investment_Valuation
Description
Business Plans
Shared by: tauben
Categories
Tags
Personal Finance, Business Tax, event planner, free space, free storage, free resource, Model Template, LBO Model, balance sheet, DMCA Notification, E-mail address, share files, ftp uploading, upload images, Critical upgrade, Business Plan, balance sheet, market research, marketing strategy, company image, the Marketing Plan, access file, Success Stories, Credit Policies, Grow Your Business, Buying a Business, New Business, Start A Business, American Legal, Local County, Los Angeles,
-
Stats
- views:
- 52
- posted:
- 10/15/2010
- language:
- English
- pages:
- 13
Document Sample
KEY ASSUMPTIONS
Investment Details
New New Investment Name of Investment
Existing Status Quo
2011 First Year of Investment Input Denomination $000
Taxation & Amortisation
Rate 33.00% Company/Business Tax Rate Goodwill Amort (Yrs) 10
Credits Carry forward tax credits (if any) on operational losses?
Capital and Cost of Capital
Equity 10,000 Current level of Company Equity (in denomination above)
Ke 15.00% Cost of Equity, or Calculate Risk-Free Rate 7.00%
Market Risk Premium 8.00%
Debt 9,000 Current level of Company Debt Equity Beta 1.00
Kd 7.00% Cost of Debt
Timing End Discount cash flow evenly through Weighted Average Cost of Capital
the year (Mid) or at the end (End). WACC = 10.12%
CE Beg Capital Employed calculated at the start Include existing asset input data in
of the year (Beg) or averaged (Avg). EVA capital charge?
Terminal Value
Include Include a terminal value after 5 years? Calculation Type
Infinite Finite
Rate 2.00% Growth Rate after Yr 5 (or omit to use Yr 5 Growth Rate as per forecast).
Capex 0 Ongoing annual capital expenditure requirement into perpetuity
Comparable Investment Score
Optimal Weight
10.00% 40% Return on Invested Capital (> WACC)
500 25% Net Present Value of cash flows
3.0 5% Cost/Benefit Ratio
5.0 15% Payback Period for cash invested
500 15% Free cash flow after 2 years
100% Apply default weightings: Capital Constrained
0
2
TRUE 1
Mid
End
Beg
Avg
FALSE 0
TRUE 1
1
1
1 Capital Constrained
Capital Constrained
Capital Constrained No Capital Constraint
40 40 20
25 25 40
5 5 20
15 15 10
15 15 10
100 100 100
INPUT ASSUMPTIONS FOR Status Quo (Before New Investment)
$000 Description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Total Assumptions
2010 2011 2012 2013 2014 2015
Taxable Revenue
0
0
Non-Taxable Revenue
0
0
Operating Expenses
0
0
Investment Expenses Amort Yrs
1
1
1
Existing Assets Existing Asset Accounting Taxation Unamort.
Life (yrs) Age (Yrs) Disposal Current BV Rate Method Current BV Rate Method Goodwill
Capital Expenditure New Asset Accounting Taxation Equity
Life (yrs) Yr of Acq Acq Price Actg BV Disposal Rate Method Rate Method Funding
52.6%
52.6%
52.6%
52.6%
52.6%
Page 4 of 13 0993d78a-e807-4e0e-80cd-6812f7135d8f.xlsBefore 10/15/2010
FINANCIAL ANALYSIS FOR Status Quo
$000 Accounting Impact 2010 2011 2012 2013 2014 2015 Total
Total Revenue 0 0 0 0 0 0 0
less Expenditure 0 0 0 0 0 0 0
EBITDA 0 0 0 0 0 0 0
less Accounting Depreciation 0 0 0 0 0 0 0
less Goodwill Amortisation 0 0 0 0 0 0 0
EBIT 0 0 0 0 0 0 0
less Interest Expense 0 0 0 0 0 0 0
less Tax Payable 0 0 0 0 0 0 0
Net Profit B4 Ab. Items 0 0 0 0 0 0 0
add Profit on Asset disposal 0 0 0 0 0 0 0
Net Profit 0 0 0 0 0 0 0
$000 Cash Flow Analysis 2010 2011 2012 2013 2014 2015 Total PV of Capital Commitments after Year 5
Taxable Revenue 0 0 0 0 0 0 0
less Total Expenditure 0 0 0 0 0 0 0
less Tax Payable 0 0 0 0 0 0 0 0
less Interest Expense 0 0 0 0 0 0 0 0
Operating Cash Flow 0 0 0 0 0 0 0 0
add Non Taxable Income 0 0 0 0 0 0 0
less Capital Expenditure 0 0 0 0 0 0 0
add Asset Disposal Proceeds 0 0 0 0 0 0 0 0
Net Cash Flow 0 0 0 0 0 0 0 0
5 Yr NPV 0
Total NPV of Cash Flow 0
Page 5 of 13 0993d78a-e807-4e0e-80cd-6812f7135d8f.xlsBefore 10/15/2010
$000 Economic Value Added 2010 2011 2012 2013 2014 2015 Total PV of Capital Commitments after Year 5
Total Revenue 0 0 0 0 0 0 0
less Total Expenditure 0 0 0 0 0 0 0
less Tax Payable 0 0 0 0 0 0 0 0
less Interest Expense 0 0 0 0 0 0 0 0
add Asset Disposal Proceeds 0 0 0 0 0 0 0 0
add Economic Adjustments 0 0 0 0 0 0 0 0
Economic Profit 0 0 0 0 0 0 0 0
Capital Employed 0 0 0 0 0 0 0 0
less Capital Charge 0 0 0 0 0 0 0 0
Economic Value Added 0 0 0 0 0 0 0 0
5 Yr PV of EVA 0
Page 6 of 13 0993d78a-e807-4e0e-80cd-6812f7135d8f.xlsBefore 10/15/2010
INPUT ASSUMPTIONS FOR New Investment
$000 Description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Total Assumptions
2010 2011 2012 2013 2014 2015
Taxable Revenue
0
0
Non-Taxable Revenue
0
0
Operating Expenses
0
0
Investment Expenses Amort Yrs
1
1
1
Existing Assets Existing Asset Accounting Taxation Unamort.
Life (yrs) Age (Yrs) Disposal Current BV Rate Method Current BV Rate Method Goodwill
Capital Expenditure New Asset Accounting Taxation Equity
Life (yrs) Yr of Acq Acq Price Actg BV Disposal Rate Method Rate Method Funding
52.6%
52.6%
52.6%
52.6%
52.6%
Page 7 of 13 0993d78a-e807-4e0e-80cd-6812f7135d8f.xlsAfter 10/15/2010
FINANCIAL ANALYSIS FOR New Investment
$000 Accounting Impact 2010 2011 2012 2013 2014 2015 Total
Total Revenue 0 0 0 0 0 0 0
less Expenditure 0 0 0 0 0 0 0
EBITDA 0 0 0 0 0 0 0
less Accounting Depreciation 0 0 0 0 0 0 0
less Goodwill Amortisation 0 0 0 0 0 0 0
EBIT 0 0 0 0 0 0 0
less Interest Expense 0 0 0 0 0 0 0
less Tax Payable 0 0 0 0 0 0 0
Net Profit B4 Ab. Items 0 0 0 0 0 0 0
add Profit on Asset disposal 0 0 0 0 0 0 0
Net Profit 0 0 0 0 0 0 0
$000 Cash Flow Analysis 2010 2011 2012 2013 2014 2015 Total PV of Capital Commitments after Year 5
Taxable Revenue 0 0 0 0 0 0 0
less Total Expenditure 0 0 0 0 0 0 0
less Tax Payable 0 0 0 0 0 0 0 0
less Interest Expense 0 0 0 0 0 0 0 0
Operating Cash Flow 0 0 0 0 0 0 0 0
add Non Taxable Income 0 0 0 0 0 0 0
less Capital Expenditure 0 0 0 0 0 0 0
add Asset Disposal Proceeds 0 0 0 0 0 0 0 0
Net Cash Flow 0 0 0 0 0 0 0 0
5 Yr NPV 0
Total NPV of Cash Flow 0
Page 8 of 13 0993d78a-e807-4e0e-80cd-6812f7135d8f.xlsAfter 10/15/2010
$000 Economic Value Added 2010 2011 2012 2013 2014 2015 Total PV of Capital Commitments after Year 5
Total Revenue 0 0 0 0 0 0 0
less Total Expenditure 0 0 0 0 0 0 0
less Tax Payable 0 0 0 0 0 0 0 0
less Interest Expense 0 0 0 0 0 0 0 0
add Asset Disposal Proceeds 0 0 0 0 0 0 0 0
add Economic Adjustments 0 0 0 0 0 0 0 0
Economic Profit 0 0 0 0 0 0 0 0
Capital Employed 0 0 0 0 0 0 0 0
less Capital Charge 0 0 0 0 0 0 0 0
Economic Value Added 0 0 0 0 0 0 0 0
5 Yr PV of EVA 0
Page 9 of 13 0993d78a-e807-4e0e-80cd-6812f7135d8f.xlsAfter 10/15/2010
FINANCIAL RESULTS FOR DIFFERENCE BETWEEN Status Quo AND New Investment
$000 Accounting Impact 2010 2011 2012 2013 2014 2015 Total
Total Revenue 0 0 0 0 0 0 0
less Expenditure 0 0 0 0 0 0 0
EBITDA 0 0 0 0 0 0 0
less Accounting Depreciation 0 0 0 0 0 0 0
less Goodwill Amortisation 0 0 0 0 0 0 0
EBIT 0 0 0 0 0 0 0
less Interest Expense 0 0 0 0 0 0 0
less Tax Payable 0 0 0 0 0 0 0
Net Profit B4 Ab. Items 0 0 0 0 0 0 0
add Profit on Asset disposal 0 0 0 0 0 0 0
Net Profit 0 0 0 0 0 0 0
$000 Cash Flow Analysis 2010 2011 2012 2013 2014 2015 Total PV of Capital Commitments after Year 5
Taxable Revenue 0 0 0 0 0 0 0
less Total Expenditure 0 0 0 0 0 0 0
less Tax Payable 0 0 0 0 0 0 0 0
less Interest Expense 0 0 0 0 0 0 0 0
Operating Cash Flow 0 0 0 0 0 0 0 0
add Non Taxable Income 0 0 0 0 0 0 0
lessCapital Expenditure 0 0 0 0 0 0 0
add Asset Disposal Proceeds 0 0 0 0 0 0 0 0
Net Cash Flow 0 0 0 0 0 0 0 0
5-Yr NPV of Cash Flow 0
Infinite Terminal Value 0
Total NPV of Cash Flow 0
Page 10 of 13 0993d78a-e807-4e0e-80cd-6812f7135d8f.xlsResults 10/15/2010
$000 Economic Value Added 2010 2011 2012 2013 2014 2015 Total PV of Capital Commitments after Year 5
Total Revenue 0 0 0 0 0 0 0
less Total Expenditure 0 0 0 0 0 0 0
less Tax Payable 0 0 0 0 0 0 0 0
less Interest Expense 0 0 0 0 0 0 0 0
add Asset Disposal Proceeds 0 0 0 0 0 0 0 0
add Economic Adjustments 0 0 0 0 0 0 0 0
Economic Profit 0 0 0 0 0 0 0 0
Capital Employed 0 0 0 0 0 0 0 0
less Capital Charge 0 0 0 0 0 0 0 0
Economic Value Added 0 0 0 0 0 0 0 0
Total PV of EVA 0
Infinite Terminal Value 0
Total PV of EVA 0
COMPARABLE INVESTMENT SCORE ADDITIONAL ANALYSIS
Result Score Implicit Annual Growth Rates Change in Company Gearing
Return on Invested Capital (> WACC) No Capital 40.00% Total Revenues Before (Year 0) 47.37%
Net Present Value of Cash Flows 0 0.00% Total Expenses After (Year 5) 47.37%
Cost/Benefit Ratio No Upfront 5.00% Operating Cash Flow Change 0.00%
Payback Period (Year) 5 0.00% Net Cash Flow
Free Cash Flow after 2 years 0 0.00% Economic Profit Modified Internal Rate of Return
Comparable Investment Score 45.00% EVA No solution
Page 11 of 13 0993d78a-e807-4e0e-80cd-6812f7135d8f.xlsResults 10/15/2010
Cash Flow Chart Analysis
Annual Cash Flow Cumulative Cash Flow
1 1
1 1
1 1
1 1
1 1
1 1
0 0
0 0
0 0
0 0
0 0
2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015
Annual Cash Flow with Terminal Value
1
1
1
0
0
0
1
7
4
100
10
16
19
25
28
34
37
40
43
46
49
52
55
58
61
64
67
70
73
76
79
82
85
88
91
94
97
13
22
31
Year
Page 12 of 13 0993d78a-e807-4e0e-80cd-6812f7135d8f.xlsResults 10/15/2010
Economic Value Added Chart Analysis
Annual Economic Value Added Cumulative Economic Value Added
1 1
1 1
1 1
1 1
1 1
1 1
0 0
0 0
0 0
0 0
0 0
2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015
Annual EVA with Terminal Value
1
1
1
0
0
0
1
4
7
100
10
13
16
19
22
25
28
31
34
37
40
43
46
49
52
55
58
61
64
67
70
73
76
79
82
85
88
91
94
97
Year
Page 13 of 13 0993d78a-e807-4e0e-80cd-6812f7135d8f.xlsResults 10/15/2010
Related docs
