Escolar Documentos
Profissional Documentos
Cultura Documentos
org
(in million) Actual CAGR Forecast period
2006 2007 2008 2009 (06 - 09) 2010 2011
Sales 2,955 3,568 4,102 4,663 16% 5,036 5,438
% growth 20.7% 15.0% 13.7% 8.0% 8.0%
WACC 8.1%
Discount Period 0.5 1.5
Discount Factor 0.96 0.89
Present value of free cash flow 386 370
Terminal Value
Terminal Year Free Cash Flow 524
Perpetuity Growth Rate 3.0%
Terminal Year EBITDA 980
Terminal Value 10,598
Implied Exit Multiple 11.2x
Discount Period 5.0
Discount Factor 0.7
Present Value of Terminal Value 7,182
% of Enterprise Value 79%
Account payable
Accrued Liabilities
Other Current Liabilities
Total Current Liabilities -509 -505 -530 -666 -735 -794
% sales 17.2% 14.1% 12.9% 14.3% 14.6% 14.6%
449 485 524 (1) Obtained from Beta and Capital Structure tab
(2) Interpolated Yield on 10-year Treasury bond
(3) Obtained from PWC market risk study 2010
2.5 3.5 4.5 (4) Obtained from Beta and Capital Structure tab
0.82 0.76 0.70 (5) Obtained from PWC market risk study 2010
370 370 369
Forecast period
2012 2013 2014
WACC
Terminal Value 10,598 8.1%
Discount Factor 0.68 9.1%
Present Value of Terminal Value 7,182 10.1%
% of Enterprise Value 79%
Annual sales growth %
Enterprise value 9,047 9,047 7.0% 7.5% 8.0% 8.5%
Less: Total debt 100 12.3%
EBITDA %
Plus: Cash and Cash Equi. 300 13.3%
Net Debt -200 14.3%
15.3%
Implied Equity Value 9,247 16.3%
Outstanding shares 1,000
Implied share price 9.25
Implied multiples
Enterprise Value 9,047
SALES 2010 5,036
EBITDA 2010 720
Implied EV/SALES 1.8x
Implied EV/EBITDA 12.6x
ardering.org
is
growth %
4.0%
growth %
9.0%
Comparable Companies Unlevered Beta
Target
Relevered Mean Unlevered Mean Target Relevered
Marginal
Beta Beta Debt/ Equity Beta
Tax Rate
Target Company 0.94 41.8% 30% 1.22
0
Unlevered
Beta4
0.94
0.99
0.82
0.91
1.05
0.94
0.94
3.40%
5%
0.70%