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DCF Slide

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Pooja Dhumal
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4 views

DCF Slide

Uploaded by

Pooja Dhumal
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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### Happy Hour Co - DCF Analysis PowerPoint Slide

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**Slide Title: Discounted Cash Flow (DCF) Analysis**

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**1. Overview of DCF Methodology**


- **Purpose**: To estimate the intrinsic value of Happy Hour Co based on future cash flows.
- **Key Components**:
- **Free Cash Flow (FCF) Projections**: Cash available after capital expenditures.
- **Discount Rate**: Reflects the company’s risk profile (WACC).
- **Terminal Value**: Value at the end of the projection period.

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**2. Free Cash Flow Projections (FY20 - FY24)**

| Year | Free Cash Flow ($K) |


|-------|---------------------|
| FY20 | 43 |
| FY21 | 27 |
| FY22 | 50 |
| FY23 | 89 |
| FY24 | 55 |

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**3. Calculation of Discounted Cash Flow**


- **Assumed Discount Rate (WACC)**: [Insert Value]%
- **Present Value of Cash Flows**:

| Year | FCF ($K) | Discount Factor | Present Value ($K) |


|-------|----------|----------------|---------------------|
| FY20 | 43 | [Factor] | [PV] |
| FY21 | 27 | [Factor] | [PV] |
| FY22 | 50 | [Factor] | [PV] |
| FY23 | 89 | [Factor] | [PV] |
| FY24 | 55 | [Factor] | [PV] |

- **Total Present Value of FCF**: [Total PV]

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**4. Terminal Value Calculation**


- **Formula**: TV = (FCF in Final Year x (1 + g)) / (r - g)
- **Assumptions**:
- **Growth Rate (g)**: [Insert Value]%
- **Terminal Value ($K)**: [Insert Value]

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**5. Total Enterprise Value (EV)**


- **Sum of Present Value of FCFs** + **Present Value of Terminal Value**
- **EV Calculation**:
- Total Present Value of FCF: [Insert Value]
- Present Value of Terminal Value: [Insert Value]
- **Total Enterprise Value**: [Insert Value]

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**6. Conclusion**
- **Valuation Summary**:
- DCF indicates an intrinsic value of Happy Hour Co.
- Comparison with market valuation will determine investment attractiveness.

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**7. Next Steps**


- Further analysis on growth drivers and market conditions.
- Sensitivity analysis to assess impact of key assumptions.

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**[End of Slide]**

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### Notes for Presentation


- Customize numbers in brackets based on your calculations.
- Visual aids like charts or graphs can enhance understanding.
- Be prepared to discuss assumptions and methodologies used in the analysis.

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