Problem
You have projected the following information on free cash flow for the firm's next three years. You have determined that the appropriate EV/EBITDA multiple at Year 3 is 7. What is the terminal value in Year 3 using the EBITDA multiple method? Round your answer to the nearest tenth and do not use any dollar signs or commas in your answers: input digits and decimals only.
|
Year
|
1
|
2
|
3
|
|
EBIT
|
5,806.1
|
6,857.3
|
8,165.1
|
|
tax rate
|
0.3705
|
0.3705
|
0.3705
|
|
Dep & Amort
|
634.5
|
821.3
|
879.0
|
|
Capex
|
807.3
|
874.7
|
946.2
|
|
Chg NWC
|
10.3
|
278.1
|
393.0
|
|
FCF
|
3,472.1
|
3,985.5
|
4,680.1
|