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(+) Changes in finished goods, inventories and work in progress 14.4 17.2 11.8
(+) Balance sheet profit at the beginning of the financial year 41.0 54.1 65.8
Balance sheet profit at the end of the financial year 54.1 65.8 83.1
Total Assets of Automotive Supplier GmbH (actual)
365.2
Depreciation expense ratio (average year -1 and 0 of fixed assets of the previous year) 25.1% 28.6%
fixed costs
Pay-out ratio
Total Assets of Automotive Supplier GmbH: Assumptions
Cost of equity
Cost of debt
t1 t2 t3 t4 t5
t1 t2 t3 t4 t5
t1 t2 t3 t4 t5
H280: Input:
WACC less 1%
I254: Note:
Present value discount factor based on the discount rate / WACC and the number of months remaining this year
I259: Note:
Input from WACC calculation schedule
I260: Input:
Growth rate to perpetuity based on, inter alia, the long term inflation rate and the maturity of the company
M262: Note : Equity value in main model differs by c.1% from equity value in sensitivity table for the same perpetuity rate as in the table the discount rate is
an input and in the main model the discount rate /WACC is a calculation from the WACC calculation sheet. As a result there is a rounding difference
Q253: Note:
Calculated on the year 5 cash flow, the discount rate / WACC and the perpetuity growth rate
=Year 5 cash flow * (1+perpetuity growth rate) / (WACC - perpetuity growth rate)
R260: Input:
Company historic net debt from latest Balance Sheet
Profit and loss statement of Automotive Supplier GmbH
(+) Changes in finished goods, inventories and work in progress 14.4 17.2 11.8
(+) Balance sheet profit at the beginning of the financial year 41.0 54.1 65.8
Balance sheet profit at the end of the financial year 54.1 65.8 83.1
Total Assets of Automotive Supplier GmbH
t1 t2 t3 t4 t5
t1 t2 t3 t4 t5
t1 t2 t3 t4 t5
t1 t2 t3 t4 t5
t1 t2 t3 t4 t5
t1 t2 t3 t4 t5
diture
t1 t2 t3 t4 t5
t1 t2 t3 t4 t5
in million t-1 t0
in million t1 t2 t3
in million t1 t2 t3
in million year 5 TV
Financial debt
= Flow to equity
*Attention: In the calculation of the interest expenses in year 5, the financial debt at the end of year 4 is here included as well
The interest expenses in the terminal value in the equity approach is calculated by multiplying the interest rate of 6.5% with t
** For the determination of the discount rates necessary for the calculation of the TV compare 3.3
flows
t4 t5 TV
t4 t5 TV
Equity Approach
FtE FtE
year 5 TV
74.4 75.1
11.9 11.0
24.2 24.8
92.0 92.9
78.7 79.5
3.1 0.8
54.5 54.5
3.0 0.0
361.3 364.9
81.9 96.6
192.5 194.4
6.5 1.9
166.8 166.8
-31.6 1.7
16.4 36.3
434.7
included as well.
Cost of equity
Company-specific risk
7.1775%
WACC Approach (target capital structure)
Cost of equity
Company-specific risk
7.7957%
TV(%) 72.85%
Weighting of the capital structure in the terminal value 86.43%
Cost if equity
Company-specific risk
Cost if equity
Company-specific risk
Cost of debt
Cost of debt
in million t1 t2
1 2
Terminal Value
in million t1 t2
1 2
Terminal Value
in million t1 t2
1 2
Terminal Value
Terminal value
Present value of cash flows of the tax shield and terminal value of the tax shie 6.2 5.6
in million t1 t2
1 2
Terminal value
Present value of flows to equity and present value of the terminal value 8.6 10.1
3 4 5 5
666.8
3 4 5 5
606.2
3 4 5 5
547.8
65.1
3 4 5 5
433.1
Value 01.01.t6
Operating free cash flow (t+1) 34.9 24.0 38.7 44.9 55.3
9.35%
3.99%
168.5
72.0%
28.0%
7.85%
601.8
41.2