Brand Name Generic Company

Market value of Equity 98160 949

Debt 7178 344.7
Cash 6707 26.6
Enterprise Value 98631 1267.1
Sales 21962 1646
EBITDA 7760 186.2
Capital Invested 16406 775.4

EV/Sales 4.49 0.77

EV/EBITDA 12.71 6.81
EV/Capital Invested 6.01 1.63

Brand Company Input

Value of brand name
Sales 21962 81724.53
EBITDA 7760 45823.82
Capital Invested 16406 71821.56
 Brand NameNo brand name
Brand Name Value
Current Tax Rate = 40.00% 40.00% (in percent)
Current Revenues = $21,962.00 $21,962.00 (in $)
Capital Invested (Book values of debt$16,406.00
and equity) $16,406.00
High Growth Period
Length of high-growth period (n) = 10 10 (Number of periods)
Reinvestment Rate (as % of EBIT(1-t)) =50% 50%
Return on capital (After-tax) = 20.84% 7.65%
Growth rate during period (g) = 10.42% 3.83% (in percent)
Cost of Equity during period = 8.00% 8.00% (in percent)
After-tax Cost of Debt = 2.88% 2.88% (in percent)
Debt Ratio (D / (D + E)) = 6.81% 6.81% (in percent)
Stable Growth Period
Growth rate in steady state = 4.00% 4.00% (in percent)
Return on capital in steady state = 7.65% 7.65%
Reinvestment Rate in Stable growth = 52.28% 52.28%
Cost of Equity in steady state = 8.00% 8.00% (in percent)
After-tax Cost of Debt = 2.88% 2.88% (in percent)
Debt Ratio (D / (D + E)) = 6.81% 6.81% (in percent)

Value of Firm = $79,620.29 $17,053.55 $62,566.73

umber of periods)

Cost of Capital = 7.65% 7.65%

Cost of capital = 7.6511% 7.6511%

 Brand Name Generic Brand Name Value
Current Tax Rate = 40.00% 40.00% (in percent)
Current Revenues = $21,962.00 $21,962.00 (in $)
Capital Invested (Book values of debt and equity) $16,406.00 $16,406.00
High Growth Period
Length of high-growth period (n) = 10 10 (Number of periods)
Reinvestment Rate (as % of EBIT(1-t)) = 50% 50.00%
Return on capital (After-tax) = 20.84% 9.20%
Growth rate during period (g) = 10.42% 4.60% (in percent)
Cost of Equity during period = 8.00% 8.00% (in percent)
After-tax Cost of Debt = 2.88% 2.88% (in percent)
Debt Ratio (D / (D + E)) = 6.81% 6.81% (in percent)
Stable Growth Period
Growth rate in steady state = 4.00% 4.00% (in percent)
Return on capital in steady state = 7.65% 7.65%
Reinvestment Rate in Stable growth = 52.28% 52.28%
Cost of Equity in steady state = 8.00% 8.00% (in percent)
After-tax Cost of Debt = 2.88% 2.88% (in percent)
Debt Ratio (D / (D + E)) = 6.81% 6.81% (in percent)

Value of Firm = $79,611.25 $21,854.65 $57,756.60

umber of periods)

Cost of Capital = 7.65% 7.65%

Cost of capital = 7.6511% 7.6511%

 Brand Name GenericBrand Name Value
Current Tax Rate = 40.00% 40.00% (in percent)
Current Revenues = $21,962.00 $21,962.00 (in $)
Capital Invested (Book values of debt and equity)
$16,406.00 $16,406.00
High Growth Period
Length of high-growth period (n) = 10 10 (Number of periods)
Reinvestment Rate (as % of EBIT(1-t)) = 50% 50%
Return on capital (After-tax) = 20.84% 11.20%
Growth rate during period (g) = 10.4194% 5.60% (in percent)
Cost of Equity during period = 8.00% 8.00% (in percent)
After-tax Cost of Debt = 2.88% 2.88% (in percent)
Debt Ratio (D / (D + E)) = 6.81% 6.81% (in percent)
Stable Growth Period
Growth rate in steady state = 4.00% 4.00% (in percent)
Return on capital in steady state = 7.65% 7.65%
Reinvestment Rate in Stable growth = 52.28% 52.28%
Cost of Equity in steady state = 8.00% 8.00% (in percent)
After-tax Cost of Debt = 2.88% 2.88% (in percent)
Debt Ratio (D / (D + E)) = 6.81% 6.81% (in percent)

Value of Firm = $79,611.25 $28,883.10 $50,728.15

ber of periods)

Cost of Capital = 7.65% 7.65%

Cost of capital = 7.6511% 7.6511%

 Firm Value Multiples

Brand Name Company Generic Brand Name Value

Current Tax Rate = 40.00% 40.00%
Current Revenues = $21,962.00 $21,962.00
High Growth Period
Length of high-growth period (n) = 10 10
Reinvestment Rate (as % of EBIT(1-t)) = 50% 50%
Operating Margin (after-tax) 15.57% 5.28%
Sales/Capital (Turnover ratio) 1.34 1.34
Growth rate during period (g) = 10.42% 3.53%
Cost of Equity during period = 8.00% 8.00%
After-tax Cost of Debt = 2.88% 2.88%
Debt Ratio (D / (D + E)) = 6.81% 6.81%
Stable Growth Period
Growth rate in steady state = 4.00% 4.00%
Return on capital in steady state = 7.65% 7.65%
Reinvestment Rate in Stable growth = 52.28% 52.28%
Cost of Equity in steady state = 8.00% 8.00%
After-tax Cost of Debt = 2.88% 2.88%
Debt Ratio (D / (D + E)) = 6.81% 6.81%

Value of Firm = $79,611.25 $15,371.24 $64,240.01

Page 8
 Firm Value Multiples

ame Value
(in percent)
(in $)

(Number of periods)

Brand Name Generic

(in percent) Return on Capital = 20.84% 7.06%

(in percent)
(in percent) Cost of Capital = 7.65% 7.65%
(in percent)

(in percent)

(in percent)
(in percent)
(in percent) Cost of capital = 7.6511% 7.6511%

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