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Determine the company value

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Reference no: EM133000525

The following sheet presents the balance sheet and value drivers of Little India, a company that operates Indian food restaurants (you love Indian food, don't you ?!)

Additional model assumptions are as follows: 

  • The FCF evaluation is for a 5-year period. In addition, a terminal value should be determined
  • using the long-term FCF growth rate.
  • The debt principal repayments are $200,000 each year.
  • Cash is a plug in the model.
  • The depreciation rate is 5% of the average fixed assets at cost.
  • The net fixed assets have a 15% growth rate.
  • Interest payed on debt and interest earned on cash are based on the average balances.

Make a pro forma model including a DCF valuation to determine the company value and its estimated share value.

Reference no: EM133000525

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