A firm with EBITDA of 1.27m/yr and tax rate of 35%. All equity financed, 10% WACC. What is the firm value? I'm confused because I normally use EBIT, but have no information on D&A
| +299 | I Snuck Into UBS Office And Took A Shit On The Floor | 28 | 10h |
| +287 | TPH V.S. Mizuho [HOU] | 36 | 1d |
| +244 | Why leave restructuring for M&A? | 30 | 10h |
| +228 | Best Power/Renewables/Energy Teams? | 38 | 8h |
| +223 | Houston 2026 Oil & Gas Investment Banking Rankings | 52 | 41m |
| +187 | Centerview HC group falling off? | 30 | 9h |
| +183 | Actual EB List | 27 | 19h |
| +177 | Predicted 1Q 2027 Story - UBS IB blames Outlook Outage for Down Quarter | 35 | 29m |
| +172 | Incoming TPH Analysts Larping as PWP on LinkedIn | 24 | 1h |
| +167 | How does getting staffed on an "account" work? | 40 | 34m |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
assuming no growth--> (1.27(1+0)(1-.35))/(.1-0)=8.255MM
dont over think it. The point of the question is probably to see if you know how to do the most basic dcf. For a sanity check--> 8.255/1.27=6.5x seems reasonable
If growth is zero and its a mature company, D&A should be offset by capex on a cash basis. Assuming theres no change in NWC as well.
Great, thanks. I was thinking to much into it
Why use the perpetuity formula? Surely that will only calculate the terminal value not the full value of the company.
The assumption is that they will make 1.27mm ebitda each year for perpetuity. Read the question again
hang on, where is this mentioned? Would you just mind explaining your methodology behind this answer, thats all I am after
Et officia quia officiis numquam unde architecto. Vero iusto nobis cupiditate explicabo. Eaque sed sed sequi in quaerat aperiam repudiandae. Et atque perspiciatis pariatur et nemo hic.
Aperiam eum esse quis quam excepturi et. Sed nobis sapiente assumenda quidem vero. Sit dolores neque quisquam quia consectetur pariatur.
Minima iure consequatur excepturi impedit. Qui perferendis repudiandae molestiae ullam voluptatum voluptatem harum. Assumenda quidem voluptatibus incidunt tenetur. Ut quod vel officiis dolores est sed. Esse velit ut nihil voluptates neque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...