| Intrinsic Share Price Value of Advanced Energy |
| |
| | | | | | | | | | | | | | Terminal |
| | 2014 Actual | | 2015 | | 2016 | | 2017 | | 2018 | | 2019 | | Value |
| Proforma cash flow |
| Growth rate | | | 0.0% | | 0.0% | | 0.0% | | 0.0% | | 0.0% | | 4.0% |
| Revenue | $ 583.1 | | $ 583.1 | | $ 583.1 | | $ 583.1 | | $ 583.1 | | $ 583.1 |
| Cost of Sales | $ 389.1 | 66.7% | $ 389.1 | 66.7% | $ 389.1 | 66.7% | $ 389.1 | 66.7% | $ 389.1 | 66.7% | $ 389.1 | 66.7% |
| Gross Margin | $ 194.0 | 33.3% | $ 194.0 | 33.3% | $ 194.0 | 33.3% | $ 194.0 | 33.3% | $ 194.0 | 33.3% | $ 194.0 | 33.3% |
| | | | | | | | | | | | | |
| R&D | $ 59.0 | 10.1% | $ 58.9 | 10.1% | $ 58.9 | 10.1% | $ 58.9 | 10.1% | $ 58.9 | 10.1% | $ 58.9 | 10.1% |
| SG&A | $ 83.9 | 14.4% | $ 84.0 | 14.4% | $ 84.0 | 14.4% | $ 84.0 | 14.4% | $ 84.0 | 14.4% | $ 84.0 | 14.4% |
| Amortization of intangibles | $ 8.4 | 1.4% | $ 8.4 | 1.4% | $ 8.4 | 1.4% | $ 8.4 | 1.4% | $ 8.4 | 1.4% | $ 8.4 | 1.4% |
| Restructuring | $ 2.3 | 0.4% | $ 2.3 | 0.4% | $ 2.3 | 0.4% | $ 2.3 | 0.4% | $ 2.3 | 0.4% | $ 2.3 | 0.4% |
| | $ 153.6 | 26.3% | $ 153.6 | 26.3% | $ 153.6 | 26.3% | $ 153.6 | 26.3% | $ 153.6 | 26.3% | $ 153.6 | 26.3% |
| Other | $ 0.7 | | $ 0.7 | | $ 0.7 | | $ 0.7 | | $ 0.7 | | $ 0.7 |
| Profit before tax | $ 39.7 | 6.8% | $ 39.7 | 6.8% | $ 39.7 | 6.8% | $ 39.7 | 6.8% | $ 39.7 | 6.8% | $ 39.7 | 6.8% |
| Tax | $ (7.3) | -18.4% | $ (7.3) | -18.4% | $ (7.3) | -18.4% | $ (7.3) | -18.4% | $ (7.3) | -18.4% | $ (7.3) | -18.4% |
| Net income | $ 47.0 | | $ 47.0 | | $ 47.0 | | $ 47.0 | | $ 47.0 | | $ 47.0 |
| EPS | $ 1.82 | | $ 1.82 | | $ 1.82 | | $ 1.82 | | $ 1.82 | | $ 1.82 |
| | |
| Add back non cash expenses (depr and amort) | $ 20.9 | | $ 20.9 | | $ 20.9 | | $ 20.9 | | $ 20.9 | | $ 20.9 |
| Add back non cash stock comp | $ 5.0 | | $ 5.0 | | $ 5.0 | | $ 5.0 | | $ 5.0 | | $ 5.0 |
| Other non cash expenses | $ - 0 | | $ - 0 | | $ - 0 | | $ - 0 | | $ - 0 | | $ - 0 |
| Capital expenditures | $ (6.1) | | $ (6.1) | | $ (6.1) | | $ (6.1) | | $ (6.1) | | $ (6.1) |
| Investment in working capital (a) | $ 0.2 | | $ - 0 | | $ - 0 | | $ - 0 | | $ - 0 | | $ - 0 |
| Cash Flow | $ 67.0 | | $ 66.8 | | $ 66.8 | | $ 66.8 | | $ 66.8 | | $ 66.8 | | $ 485.1 |
| | | | | | | | | | | | | | Terminal value estimated as 8X EBITDA of prior year |
| Ending cash | $ 128.4 |
| a) Cash conversion cycle days | - 0 |
| Intrinsic share price |
| | WACC | | 0% |
| | NPV of future cash flows | | $ 819.4 |
| | Plus cash on hand | | $ 128.4 |
| | = Total Value | | $ 947.8 |
| | Less debt on balance sheet | | $ - 0 |
| | = Equity Value | | $ 947.8 |
| | Divided by the number of outstanding shares (M) | | 41.0 |
| | = Intrinsic share price | | $ 23.1 |
| | | | |
fatma.3
final_exam_aeis_valuation_template1_2.xlsx
