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    DCFTemplate

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    Rob Keith
    The document provides a discounted cash flow analysis to value a company. It forecasts the company's operating income, earnings, free cash flows, sales and EBITDA from 2005 to 2008. It then uses the 2008 forecasted EBITDA and sales as terminal values, applying multiple exit multiples. This results in implied enterprise values ranging from $129,963 to $216,031 depending on the discount rate and exit multiples used. It also compares the company to public comparables and acquisition comparables to determine appropriate discount rates and multiples.

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    DCFTemplate

    Uploaded by

    Rob Keith
    427 views5 pages
    The document provides a discounted cash flow analysis to value a company. It forecasts the company's operating income, earnings, free cash flows, sales and EBITDA from 2005 to 2008. It then uses the 2008 forecasted EBITDA and sales as terminal values, applying multiple exit multiples. This results in implied enterprise values ranging from $129,963 to $216,031 depending on the discount rate and exit multiples used. It also compares the company to public comparables and acquisition comparables to determine appropriate discount rates and multiples.

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    The document provides a discounted cash flow analysis to value a company. It forecasts the company's operating income, earnings, free cash flows, sales and EBITDA from 2005 to 2008. It then uses the 2008 forecasted EBITDA and sales as terminal values, applying multiple exit multiples. This results in implied enterprise values ranging from $129,963 to $216,031 depending on the discount rate and exit multiples used. It also compares the company to public comparables and acquisition comparables to determine appropriate discount rates and multiples.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    427 views5 pages

    DCFTemplate

    Uploaded by

    Rob Keith
    The document provides a discounted cash flow analysis to value a company. It forecasts the company's operating income, earnings, free cash flows, sales and EBITDA from 2005 to 2008. It then uses the 2008 forecasted EBITDA and sales as terminal values, applying multiple exit multiples. This results in implied enterprise values ranging from $129,963 to $216,031 depending on the discount rate and exit multiples used. It also compares the company to public comparables and acquisition comparables to determine appropriate discount rates and multiples.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    of 5
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    The document contains a discounted cash flow valuation of a company using projections of income, sales, and multiples. It also compares the company to peers using debt, sales, EBITDA multiples, and other financial metrics.

    The document uses a discounted cash flow valuation based on projected income and sales figures. It also values the company using EBITDA and sales exit multiples.

    Company data provided for comparables includes debt-to-equity ratios, tax rates, betas, and financial metrics like sales, EBITDA, LTM interest-bearing debt.

    Valuation Summary

    Preliminary Discounted Cash Flow Analysis: Using EBITDA & Sales Exit Multiple for Terminal Value
    Projected
    Fiscal Year Ended FY2005E 2006E 2007E 2008E
    Operating Income $13,988 $16,983 $21,777 $27,895
    Less: Taxes 2,297 2,898 3,729 5,396
    Debt Free Earnings $11,691 $14,085 $18,048 $22,499
    Plus: Depreciation & Amortization 1,078 2,097 3,260 3,098
    Less: Capital Expenditures 2,619 3,000 3,500 4,250
    (Increase) in Working Capital 1,521 (661) 363 167
    Free Cash Flow to the Firm $8,629 $13,843 $17,445 $21,180

    Forecasted Sales (for terminal value) $165,732


    Forecasted EBITDA (for terminal value) $27,895
    Discount Rate (IRR) 20.0% 25.0% 30.0%
    EBITDA Exit Multiple 10.2x 8.2x 13.3x 10.2x 8.2x 13.3x 10.2x 8.2x 13.3x
    2008E EBITDA $27,895 $27,895 $27,895 $27,895 $27,895 $27,895 $27,895 $27,895 $27,895
    Terminal Value 284,977 228,739 371,004 284,977 228,739 371,004 284,977 228,739 371,004
    PV of Terminal Value 137,431 110,310 178,918 116,726 93,691 151,963 99,778 80,088 129,899
    PV of Free Cash Flows 37,114 37,114 37,114 33,370 33,370 33,370 30,185 30,185 30,185
    Implied Value of the Enterprise 174,545 147,424 216,031 150,096 127,061 185,333 129,963 110,273 160,084
    PV of Terminal as % of Implied Value 78.7% 74.8% 82.8% 77.8% 73.7% 82.0% 76.8% 72.6% 81.1%

    Discount Rate 20.0% 25.0% 30.0%


    Sales Exit Multiple 1.3x 0.6x 2.8x 1.3x 0.6x 2.8x 1.3x 0.6x 2.8x
    2008E Sales $165,732 $165,732 $165,732 $165,732 $165,732 $165,732 $165,732 $165,732 $165,732
    Terminal Value 217,135 99,439 464,050 217,135 99,439 464,050 217,135 99,439 464,050
    PV of Terminal Value 104,714 47,955 223,789 88,939 40,730 190,075 76,025 34,816 162,477
    PV of Free Cash Flows 37,114 37,114 37,114 33,370 33,370 33,370 30,185 30,185 30,185
    Implied Value of the Enterprise 141,828 85,068 260,903 122,308 74,100 223,445 106,210 65,001 192,662
    PV of Terminal as % of Implied Value 73.8% 56.4% 85.8% 72.7% 55.0% 85.1% 71.6% 53.6% 84.3%
    Forecasted sales
    2005 2006 2007 2008
    85281 105630 133223 165732
    Change 20349 27593 32509
    % change 23.9% 26.1% 24.4%
    Average 24.8%

    Forecasted EBITDA
    2005 2006 2007 2008
    13771 16983 21777 27895
    Change 3212 4794 6118
    % change 23.3% 28.2% 28.1%
    Average 26.5%
    WACC IRR

    Spyder 20%
    Debt 0 25%
    Equity 4731 30%
    Preferreds 0
    D/E 0
    Kd 0
    Ke 14.42%
    WACC = Ke? 14.42%

    Ke-CAPM
    Rf 4.77%
    Beta 0.84
    Size Premium 5.00%
    MRP 5.50%
    Ke 14.42%

    Company Comparables

    LTM
    Market Interest-
    Value of Bearing
    Company Name Betab Equityc Debt D/E Tax rate UL Beta

    Adidas 0.81 4,302 1,459 0.34 0.35 0.66


    Columbia Sportswear Co. 1.48 2,239 20 0.01 0.35 1.47
    K2 Inc. 1.36 559 209 0.37 0.35 1.09
    Quiksilver Inc.f 1.01 1,217 138 0.11 0.35 0.94
    Skis Rossignol SAg 0.55 174 118 0.68 0.35 0.38
    VF Corp 0.59 5,113 994 0.19 0.35 0.52
    Average 0.97 0.28 0.84

    Financial Acquirors

    Avg
    Sales
    LTM LTM Sales EBITDA Multiple
    Company Name Sales EBITDA Multiple Multiple Finanical

    InvestCorp Int'l Inc.-Helly Hansen Asa 146 18 1.10x 8.90x 1.43


    Bain Capital-Jack Wolfskin 52 7 1.20x 9.30x
    Cerberus Partners-Fila Holding 954 44 0.60x 13.30x Avg Sales Multiple
    Bear Stearns- Camel Bak 74 25 2.80x 8.20x 1.31
    Average 306.50 23.50 1.43 9.93
    Five-Year
    Average
    Debt-to-
    Total LTM LTM Sales EBITDA
    Value Sales EBITDA Multiple Multiple

    0.39 6,221 586 0.93x 9.84x


    0.06 990 220 2.28x 10.29x
    0.41 839 63 0.92x 12.11x
    0.17 1,039 130 1.30x 10.44x
    0.44 479 25 0.61x 11.94x
    0.20 5,390 725 1.13x 8.42x
    1.20 10.51

    Avg Avg
    Avg Sales EBITDA EBITDA
    Multiple Multiple Multiple
    Company Finanical Company

    1.20 9.93 10.51

    Avg Sales Multiple Average EBITDA Multiple


    10.22

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