The estimated value per share of Bel Vino in the base
case is $38.53 per share. What is the estimated value per
share of Bel Vino if the estimated EV/EBITDA multiple at the end of
five years is 8.90x?
The Estimated Value Per Share Of Bel Vino In The Base Case Is 38 53 Per Share What Is The Estimated Value Per Share Of 1 (167.93 KiB) Viewed 28 times
M&A in Wine Country Bel Vino Base Case Valuation 2010 330 29 359 160 24 23 107 45 10 98 310 7 90 335 45 144 20 24 140 Operating Forecasts US Sales International Sales Net Sales Cost of Goods Sold Depreciation Marketing Expense Other SG&A EBIT Supplementary Schedules Net Working Capital working cash A/R Inventory Other CA A/P Net working capital Other assets Beginning net PP&E Capital Expenditures. Depreciation Ending Net PP&E Free Cash Flow Calculation EBIT EBIT(1-t) Depreciation Capital expenditures A NWC A Other assets. Free cash flow Terminal value Discount factor PV(FCF + TV) PV Enterprise Less EOY 2012 Debt Estimated Equity Value number of shares (000,000s) Value per share A NWC A Other assets tax rate= Perp. g = 2011 328 32 360 150 9 24 108 69 10 99 291 7 90 317 45 140 20 28 132 40% 3% 10.0 <=History Pro Forma => 2012 2013 330 332 36 41 366 372 140 141 25 23 26 112 68 10 102 274 9 24 111 82 10 100 272 7 90 299 45 132 20 26 126 7 69 325 26 47 2 126 20 25 121 Pro Forma => 2013 2014 333 46 379 144 24 27 114 71 11 104 280 68 41 25 20 26 8 70 332 6 47 1 121 20 24 117 2014 71 42 24 20 2015 335 52 387 147 23 27 116 73 11 106 285 8 72 338 7 2016 337 59 395 150 23 28 119 76 11 108 291 48 1 117 20 23 113 2015 73 44 23 20 8 73 346 7 49 8 51 1 111 20 22 109 2017 79.0 47 22.1 20 6 7 8 2 1 1 1 = 18 40 40 40 40 8.90 810 growing perpetuity 0.925 17 0.855 34 0.791 31 0.732 29 0.677 575 686.3 301.0 385 38.53 [Compare to $36.00, beginning Bel Vino stock price in Sim] Differs by 7.04% 2017 Pro forma assumptions 338 66 405 154 22 28 121 79 11 111 298 8 75 354 1 113 20 23 111 2016 76 46 23 20 7 . 1 0.5% annual growth 13.0% annual growth 38.0% of sales 20.0% of beginning net PP&E 7.0% of sales 30.0% of sales 2.8% of sales 100 days sales outstanding 708 days of COGS 2.0% of sales 90 days of cash op expenses 12.50% of sales given 20% of beginning net PP&E WACC Calculation Asset beta Risk-free rate Market Risk Premium Cost of debt Target D/V Implied debt beta Re-levered equity beta Cost of equity WACC 8.1200%
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