I'm trying to calculate the FCF to find the enterprise value of this small company.
The financial statements in the case are so condensed I'm not even sure how to calc NOWC & Cap Ex without some reference to current assets and liabilities. Any help is appreciated.
Projected balance statement
Year 0 1 2 3 4 5
Equity 6000 6375 6754 7104 7429 7734
Debt 2000 2125 2251 2368 2476 2578
Total Liabilities 8000 8500 9005 9472 9905 10312
Gr fixed ass. 6000 7200 8400 9600 10800 12000
Accum Deprec 0 900 1845 2828 3844 4887
Net Fixed Ass 6000 6300 6555 6772 6956 7113
Working Cap 2000 2200 2450 2700 2950 3200
Total Assets 8000 8500 9005 9472 9906 10313
Projected Income
Year 1 2 3 4 5
Revenue 4400 4900 5400 5900 6400
Expenses 2400 2700 3000 3300 3600
EBITDA 2000 2200 2400 2600 2800
Interest @8% 165 175 185 194 202
Deprec @ 15% 900 945 983 1016 1043
EBT 935 1080 1232 1390 1555
Tax @ 30% 281 324 370 417 466
Net Income 654 756 862 973 1089
My feeble attempt:
Net Income 654 756 862 973 1089
+ Depreciation 900 945 983 1016 1043
+- NOWC 300 300 300 300 300 (Change in forecasted expenses?)
Cap Ex 1200 1200 1200 1200 1200 (Change in gross fixed assets?)
+ Net Debt 125 126 117 108 102
FCF 529 675 828 981 1130