Final Exam Flashcards
How to find number of expected sales
Previous year sales * (1 + sales growth percentage)
EBIT
Sales * EBIT margin
Taxes
EBIT * Tax rate
Depr. & Provisions
Sales * Depr. & Provisions rate
Capex
Sales * Net capex rate
Changes in Working Capital
(Sales previous year - Sales current year)* Chg. in W. Capital rate
Free Cash Flow
EBIT - Taxes + Depr. - Capex - Chg. in W. Capital
Terminal Value
Last year FCF * ( 1 + Growth rate) / ( WACC - Growth rate)
Growth rate
Long term inflation + Expected real growth
WACC
Cost of equity * % of equity + Cost of debt * % of debt * (1 - tax rate)
Discount factor
1 / (1 + WACC) ^ year
Discounted Cash Flows
FCF * Discount factor
Enterprise value
FCF + TV
Equity beta
Beta company * (1+ (1- tax rate) * % debt / (1- % debt)
Cost of equity
Risk-free rate+ ( equity beta * equity risk premium)
Cost of debt
(Risk-free rate + debt spread) * (1- tax rate)
Net debt
Banking loans + issued bonds - cash position
Equity value
Enterprise value - net debt - minority interest + financial investments
Value per share
Equity value / shares outstanding
% price potential
(Value per share - market price) / market price
