2001 Asset Value ( in $76.436 $74.314 $74.31
BCF EBITDA After-tax CashFlow
aluation Using DCF - APV DCF Valuation DCF Valuation
VALUATION Using Multiple Analysis Industry Average Industry Avg (Corrected) Mutiple Value Multiple Value 18.1 $1,383 17.25 $1,319 19.4 $1,442 17.42 $1,295 26.1 $1,940 23.55 $1,750
$1,465 Billion
Valuation Based on similar market acquisition Infinity 1.4 billion or 21.5 X 2000BCF 21.5 65041000 Cost per station station
Ra Multiple 22.1 24.2 36.5
Assuming BCF multiple Assuming growing perpetuity
1,398.38 Billion
18 stations
$77.69 $77.69 Million Million 70
CFO CFO Anti Antici cipa pate ted d offe offerr
Aftertax cash flow
20X2 20X200 000 0 BCF BCF 20 65041000
16303 1999
$1,300.82 billion
$61.94
Per station dio One Value $1,689 $1,798 $2,712
$62.79 $61.65 $83.34
Year BCF-New Markets
2001 76,436,000
2002 89,711,000
2003 101,966,000
2004 115,277,000
Total BCF
76,436,000
89,711,000
101,966,000
115,277,000
2,121,750
24,402,585
2,805,938
3,226,905
EBITDA
74,314,250
65,308,415
99,160,063
112,050,095
Depr. & Amort.
90,447,000
90,447,000
90,447,000
90,447,000
(16,132,750)
(25,138,585)
8,713,063
21,603,095
3,049,572
7,561,083
5,663,491
14,042,012
Corporate Expenses
EBIT Tax Net Income Depr. & Amort. Capital Expenditure Cash Flow
-
-
(16,132,750)
(25,138,585)
90,447,000
90,447,000
90,447,000
90,447,000
2,100,000
2,100,000
2,100,000
2,100,000
72,214,250
63,208,415
94,010,491
102,389,012
$ in million PV Cash Flow =
$235
TV BCF Multiples =
$2,087
PV TV BCF Multiples
$1,230
DCF VALUATION
$1,465
Sensitivity Analysis - Varying Growth Rate (Growing Perpetuity) Growth Rate PV Cash Flow
3.20%
4%
6%
8%
10%
$235
$235
$235
$235
$235
$1,088.67
$1,183.78
$1,503.44
$2,031.78
$3,072.12
PV TV BCF (g)
$641.70
$697.76
$886.18
$1,197.60
$1,810.82
DCF Valuation
$877.10
$933.16
$1,121.58
$1,433.00
$2,046.22
TV BCF (g)
$ in million
Cor Ratios assumed to be constant Corporate Xpense to Potential mar Depreciation & Amort to Potential
Radio 1 Radio1 & Acquisitions Acquisitions Ratio
Equity
Debt+Equity
420,256,000
527,536,000 107,280,000
Capital Structure to be maintained WD = weight of Debt WE= Weight of Equity NOT Cannot easily establish tax interest deferred interest (82.6M) and Defe
After Tax Cashflow NetIncome 74314250 (16,132,750) 12% $235 $6,068.35
BEquity
$3,576.91
Rate of Debt=
$3,812.31
WACC=
0.9625 0.91 15.51%
Risk Free Rate= Risk Premium= Asset Beta= Asset Return =
6% 9.68% 0.82 14.13%
Growth Rate= 3.20% porate Tax Rate= 35%
et -RatioCE arket -RatioD&A Corporate Expense 4,155,000 6,000,000 1,845,000 30.75%
Depr. & Amort.
17,073,000 Exhibit 6, 1999 107,520,000 Exhibit 9, 1999 90,447,000 Held constant for the 84.12%
WD 20.34% <=Total liability
Data Source
WE 79.66%
throughout the projection Rd =Debt interest rate??? USED IN OUR ANALYSIShen looking at Balance sheet, I see LT debt & red income tax 14.5 M, what is my tax shield?
+ Depreciation 90,447,000