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    Valuation for Investment Banking

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    As an investment banking analyst at Deutsche Bank, you are asked to perform a discounted
    cash flow analysis. Your associate provides you with the following information from the
    company's operating model and asks you to calculate the present value of the company's
    first five years of unlevered free cash flows assuming a 10% discount rate and a 40% tax
    Projections (millions)
    Fiscal Year (FY) FY+1 FY+2 FY+3 FY+4 FY+5
    Net Sales â?¬300.0 â?¬374.1 â?¬417.7 â?¬466.5 â?¬521.0
    EBITDA 66.0 84.2 94.0 105.0 117.3
    Depreciation & Amortization 10.0 12.5 15.0 17.5 20.0
    Capital Expenditures 7.5 10.6 13.5 16.6 20.0
    Net Change in Working Capital 0.0 0.0 0.0 0.0 0.0

    What is the present value of the company's free cash flows in millions?

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    Solution Summary

    The expert examines the valuation for investment banking.