Assumptions:

Average Room Rent

Increase

15%

Depreciation (% of
NFA)

7%

F&B Revenue (% of
Room Rent)

65%

Management Fee
Revenue (% of
Room Rent)

7%

NWC (% Revenue)

30%

Tax Rate

20%

Growth Rate of FCFF

after 7 years

10%

Year

No. of Rooms

2190

2280

No. of rooms
occupied

1368

Room Rent Revenue

(in millions)

1043

1248

F&B Revenue (in

Millions)

678

811

Management Fee
Revenue (in
millions)

73

87

Total Revenue (in

millions)

1794

2147

Operating Expenses
(in millions)

1216

1359

EBITDA

578

788

D&A
EBIT
NOPAT
Delta NWC
FCFF
TERMINAL VALUE
(V7)
Total Cash Flow
PVIF

120
668
534
128
325.9590

326
0.8545

PV of Total Cash
Flow

ENTERPRISE
VALUE
LESS: DEBT
OUTSTANDING
EQUITY VALUE
No. of Shares

VALUE PER
SHARE
Fixed Assets:
Year
Gross Block
CAPEX
Acc. Depr.
Beg. Net Fixed
Assets
Additional Depr.
End. NFA

279

5046
900
4146
10

415

0
2110
600

1
2110
2110
200
600
1710

1510

WACC CALCULATION
YEAR 0
MARKET VALUE OF
EQUITY (in millions)

3090

MARKET VALUE OF
DEBT (in millions)

900

MARKET VALUE OF
SHC (in millions)

3990

Equity beta
rf

0.921
12%

Market risk premium

8%

Post-tax cost of debt

(kd)

9%

Cost of Equity (ke)

19%

WACC

17%

120
1590

2410

2490

2620

2806

1470

1544

1651

1796

1543

1863

2291

2866

1003

1211

1489

1863

108

130

160

201

2653

3204

3940

4930

1680

2029

2495

3121

973

1176

1445

1809

132
841
673
152
353.3089

140
1036
829
165
563.1319

165
1280
1024
221
468.6808

210
1599
1279
297
391.8036

353
0.7301

563
0.6239

469
0.5331

392
0.4555

258

351

250

178

2310
300
720

2610
240
852

2850
500
992

3350
800
1157

1890

1998

2358

2993

132
1758

140
1858

165
2193

210
2784

Operating
Expenses Rupees
(in million)
Materials
Personnel
Upkeep
services

and

Sales and general

administration
Total Operating
Expenses

Year

3161

3311

Rooms to be added

2055

2185

Investment
(Rs.Million)

3771

4612

2451

2998

264

323

6486

7933

4107

5023

Year

2380

2910

Average Room Rent

Per Day

293
2087
1669
467
95.2434

363
2547
2038
434
666.8625
10436

95
0.3893

11102
0.3326

Year
Occupancy Rate

37

3693

4150
1400
1366

5550
1300
1659

4184

5191

293
3891

363
4827

Delta NWC:
Year
Beg NCA
End NCA
Delta NWC

Year 0

Year 1 - 7

258

15%

258

15%

350
18%
350

18%

1216

66%

90

130

80

130

200

300

240

500

60%

61%

62%

63%

2500

2875

3306

3802

516

516
644
128

644
796
152

796
961
165

186

355

800

1400

64%

65%

4373

5028

961
1182
221

1182
1479
297

7
150
1300

7
66%

7
5783

1479
1946
467

1946
2380
434