Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 3K views

    Lady M Case - 08.07.2016

    Uploaded by

    Sabyasachi Mukerji
    This document provides financial projections for a new business over 5 years. It includes projections for revenue, costs, profits, and cash flows. It shows that the required sales growth to recover the initial investment is 13.19%, which is lower than the projected first year growth of 81.27%. Therefore, the analysis indicates the business should be opened. It also calculates the firm value using a discounted cash flow model and shows the equity value based on the investor's percentage stake.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Lady M Case - 08.07.2016

    Uploaded by

    Sabyasachi Mukerji
    3K views14 pages
    This document provides financial projections for a new business over 5 years. It includes projections for revenue, costs, profits, and cash flows. It shows that the required sales growth to recover the initial investment is 13.19%, which is lower than the projected first year growth of 81.27%. Therefore, the analysis indicates the business should be opened. It also calculates the firm value using a discounted cash flow model and shows the equity value based on the investor's percentage stake.

    Original Description:

    Lady M case

    Original Title

    Lady M Case_08.07.2016

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document provides financial projections for a new business over 5 years. It includes projections for revenue, costs, profits, and cash flows. It shows that the required sales growth to recover the initial investment is 13.19%, which is lower than the projected first year growth of 81.27%. Therefore, the analysis indicates the business should be opened. It also calculates the firm value using a discounted cash flow model and shows the equity value based on the investor's percentage stake.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    3K views14 pages

    Lady M Case - 08.07.2016

    Uploaded by

    Sabyasachi Mukerji
    This document provides financial projections for a new business over 5 years. It includes projections for revenue, costs, profits, and cash flows. It shows that the required sales growth to recover the initial investment is 13.19%, which is lower than the projected first year growth of 81.27%. Therefore, the analysis indicates the business should be opened. It also calculates the firm value using a discounted cash flow model and shows the equity value based on the investor's percentage stake.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 14
    At a glance
    Powered by AI
    The document discusses financial projections and analysis for a new business including revenues, costs, profits, growth rates and discounted cash flow valuation.

    Revenues are projected to grow from Rs. 1,888,000 in year 1 to Rs. 3,914,957 in year 5. Costs include costs of goods sold, rent, utilities and labour. Profits are projected to increase each year from Rs. 148,591 to Rs. 999,994 over the 5 years.

    The required sales growth rate to recover the initial investment is 13.19% which is lower than the observed growth rate in the example of 81.27%

    Fixed Cost

    Rent
    Utility
    Labour
    Contribution / unit
    BEP units
    Selling Price
    BEP Sales

    Y1
    310600
    38644
    594750
    40
    23600 Cash BEP
    80
    ###

    Including setup cost 5 yrs depreciation


    Depreciation
    200000 Non cash item
    New fixed cost
    1143994
    BEP units
    28600

    20% sales growth


    Revenue
    CoGS
    Rent
    Utility
    Labour
    Profit
    Initial investment uncovered

    5% sales growth
    Revenue
    CoGS
    Rent
    Utility
    Labour
    Profit
    Initial investment uncovered

    Y1
    1888000
    944000
    310600
    38644
    594750
    6
    999994

    Y2
    2265600
    1132800
    319918
    39803
    624488
    148591
    851403

    Y3
    2718720
    1359360
    329516
    40997
    655712
    333135
    518268

    Y4
    3262464
    1631232
    339401
    42227
    688497
    561106
    -42839

    Y5
    3914957
    1957478
    349583
    43494
    722922
    841479
    -884317

    Y1
    1888000
    944000
    310600
    38644
    594750
    6
    999994

    Y2
    1982400
    991200
    319918
    39803
    624488
    6991
    993003

    Y3
    2081520
    1040760
    329516
    40997
    655712
    14535
    978468

    Y4
    2185596
    1092798
    339401
    42227
    688497
    22672
    955795

    Y5
    2294876
    1147438
    349583
    43494
    722922
    31438
    924357

    Required growth rate

    13.19% Using Goal Seek

    Sales growth reqd


    Revenue
    CoGS
    Rent
    Utility
    Labour
    Profit
    Initial investment uncovered

    Y1
    1888000
    944000
    310600
    38644
    594750
    6
    999994

    Y2
    2137038
    1068519
    319918
    39803
    624488
    84310
    915684

    Y3
    2418924
    1209462
    329516
    40997
    655712
    183237
    732447

    Y4
    2737994
    1368997
    339401
    42227
    688497
    298871
    433576

    Y5
    3099150
    1549575
    349583
    43494
    722922
    433576
    0

    Q3
    Sales Revenue
    Growth rate

    2012
    4132517
    81.27%

    2013
    7491187

    So the shop should be opened because our


    required growth rate to recover initial investment
    is 13.19% only against observed growth of
    81.27%

    Q4
    FCFF
    Opt 2
    Opt 3

    EBIT*(1-t)+D&A-Del Capex-Del NWC


    PAT+D&A-Del Capex-Del NWC
    Line by line projections in IS

    2012
    Sales
    4132517
    (-)CoGS
    1303416
    Gross Profit
    2829101
    (-)SGA
    2449200
    (-)R&D
    0
    EBITDA
    379901
    (-)D&A
    41800
    EBIT
    338101
    (-)Tax
    4421
    PAT
    333680
    %Change in Sales
    CoGS
    SGA
    Capex
    Depreciation
    5% rise in Depreciation
    Delta Sales
    Delta NWC

    EBIT*(1-t)
    (+)D&A
    (-)Del Capex
    (-)Del NWC
    FCFF

    Terminal Value
    perpetuity method
    DCF
    discount
    EV (taking PV of cashflows)
    Investor investment
    %stake
    Debt
    Equity Value
    %stake

    EBITDA multiple

    Year 2014 Terminal Value


    PV
    EV
    Debt
    Equity Value
    %stake

    2013
    7491187
    1632722
    5858465
    4342500
    0
    1515965
    149007
    1366958
    74191
    1292767

    Financial Projection - IS projections - FCFF


    2014
    2015
    2016
    11000000
    13200000
    18480000
    2397476 2876971.353138 4027759.8943932
    8602524 10323028.64686 14452240.105607
    6376493 7519791.364973 10342907.910963
    0
    13200
    18480
    2226031 2790037.281889 4090852.1946442
    24750
    800000
    47124
    2201281 1990037.281889 4043728.1946442
    770448
    696513
    1415305
    1430833
    1293524
    2628423
    0.4684
    0.2000
    0.4000

    % of Sales
    21.80%
    57.97%

    57.97%

    56.97%

    55.97%

    33000
    24750
    75

    1000000
    800000
    80

    55440
    47124
    85

    3508813
    68000
    1.94%

    2200000
    42636

    5280000
    102325

    1293524
    800000
    1000000
    42636
    1050889

    2628423
    47124
    55440
    102325
    2517782

    g=4%
    WACC = 12%
    12%

    Rs. 938,293.51 Rs. 2,007,160.49


    Rs. 53,269,243.90
    10000000
    18.8%
    1017615
    52251628.8963779
    19.14%
    12

    26712372.818887
    Rs. 15,157,317.72
    Rs. 26,476,036.19
    1017615
    Rs. 25,458,421.19
    39.28%

    ns - FCFF
    2017
    2018
    2019
    23100000
    28875000
    36093750
    5034699.8679916 6293374.8349894 7866718.5437368
    18065300.132009 22581625.165011 28227031.456263
    12697634.888703 15583293.610879 19118179.513599
    23100
    28875
    36094
    5344565.2433052 6969456.5541316 9072758.1926644
    62370
    82293.75
    108281
    5282195.2433052 6887162.8041316 8964476.9426644
    1848768
    2410507
    3137567
    3433427
    4476656
    5826910
    0.2500
    0.2500
    0.2500

    54.97%

    53.97%

    52.97%

    69300
    62370
    90

    86625
    82294
    95

    108281
    108281
    100

    4620000
    89535

    5775000
    111918

    7218750
    139898

    3433427
    62370
    69300
    89535
    3336962

    4476656
    82294
    86625
    111918
    4360406

    5826910
    108281
    108281
    139898
    5687012

    73931159.578054
    Rs. 2,375,183.89 Rs. 2,771,117.09 Rs. 3,226,963.49

    Rs. 41,950,525.42

    You might also like