Calculating Enterprise Value All figures in USD thousands unless stated Levered free Cashflow Debt Unlevered Free Cash Flow Cash WACC Cost of Equity 8.75% 12.00% Year 0 24,043 33,222 38,212 9,700 Year 1 25,245 34,304 39,549 10,782 Year 2 26,507 38,058 40,933 14,536 Given only the above information, what is the Enterprise Value at the end of Year O? Assume end-of-year discounting. Year 3 27,832 43,234 42,366 19,712 Year 4 29.224 50,517 43,849 26,995 Year 5 30,685 55,480 45,383 31,958 Year 6 32,219 60,198 46,972 36,676

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter14: Security Structures And Determining Enterprise Values
Section: Chapter Questions
Problem 9EP
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Discounted Cash Flow Valuation - Calculating Enterprise Value

A discounted cash flow can be used to calculate either enterprise value or equity value.

Open the attached Excel file found above the question and go to the worksheet labeled: EV (Blank)

Calculate the company’s enterprise value at the end of Year 0 given the information in the Excel file. Assume end-of-period-discounting.

Calculating Enterprise Value
All figures in USD thousands unless stated
Levered free Cashflow
Debt
Unlevered Free Cash Flow
Cash
WACC
Cost of Equity
8.75%
12.00%
Year 0
24,043
33,222
38,212
9,700
Year 1
25,245
34,304
39,549
10,782
Year 2
26,507
38,058
40,933
14,536
Given only the above information, what is the Enterprise Value at the end of Year O? Assume end-of-year discounting.
Year 3
27,832
43,234
42,366
19,712
Year 4
29,224
50,517
43,849
26,995
Year 5
30,685
55,480
45,383
31,958
Year 6
32,219
60,198
46,972
36,676
Transcribed Image Text:Calculating Enterprise Value All figures in USD thousands unless stated Levered free Cashflow Debt Unlevered Free Cash Flow Cash WACC Cost of Equity 8.75% 12.00% Year 0 24,043 33,222 38,212 9,700 Year 1 25,245 34,304 39,549 10,782 Year 2 26,507 38,058 40,933 14,536 Given only the above information, what is the Enterprise Value at the end of Year O? Assume end-of-year discounting. Year 3 27,832 43,234 42,366 19,712 Year 4 29,224 50,517 43,849 26,995 Year 5 30,685 55,480 45,383 31,958 Year 6 32,219 60,198 46,972 36,676
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