Axial - Discounted Cash Flow Business Valuation Calculator

$ million, unless otherwise noted

Inputs
Date of Valuation 12/31/2015
End Date of Latest Year of Financials 12/31/2015
Operating Inputs ($M)
Revenue $50.0
EBITDA (Earnings) $10.0
Depreciation $3.0
Amortization $2.0
Capital Expenditures $3.5
Working Capital $0.5
Rate Inputs (%)
Discount Rate 15.00%
Short Term Revenue Growth Rate (still growing) 6.00%
Long Term Revenue Growth Rate (at maturity) 3.00%
Tax Rate 35.00%

Operating Summary

Revenue
% growth

EBITDA
% of sales
Depreciation
% of sales
Amortization
% of sales
EBIT
% of sales

Income Taxes
% tax rate
Net Operating Profit After Tax ("NOPAT")
% of sales

Plus: Depreciation
% of sales
Plus: Amortization
% of sales
Less: Capital Expenditures
% of sales
Less: Change in Working Capital
% of sales
Plus/Less: Change in Other Operating Assets/Liabilities
% of sales
Free Cash Flow ("FCF")
% of sales

Note: Working Capital

% of sales

This Discounted Cash Flow Analysis Template (Template) and all components thereof are provided on an a
sufficiency, or accuracy of the Template. In no event shall Axial be liable to you, or to any third party, for any l
Axial - Master Discounted Cash Flow Analysis Template (continued)
$ million, unless otherwise noted

Projection Period Calculation

Discount Period
Discounted FCF, Assuming Discount Rates as Shown
13.00%
15.00%
17.00%

Cumulative Discounted FCF over Projection Period

13.00%
15.00%
17.00%

Terminal Value Calculation

Terminal Year EBITDA 15.5

Terminal Year FCF 7.4
Terminal Year Discount Period 9.5
Discount Rate 15.00%
Discount Rate Sensitivity Step 2.00%
Perpetual Growth Rate 3.00%
Perpetual Growth Rate Sensitivity Step 1.00%

Discounted Cash Flow Summary

Discount Rate
Company Value Calculation
FCF over Projection Period
Terminus
Company Value
Company Value Attribution
% Value in Projection Period
% Value in Terminus
Implied Valuation Multiples
Company Value / 2015 Revenue
Company Value / 2016 Revenue
Company Value / 2015 EBITDA
Company Value / 2016 EBITDA
Implied Terminal EBITDA Multiple

This Discounted Cash Flow Analysis Template (Template) and all components thereof are provided on an a
sufficiency, or accuracy of the Template. In no event shall Axial be liable to you, or to any third party, for any l
Instructions
Discounted cash flow (DCF) is a valuation technique that values your business based on its future cash flows
Step 1: Input the date of valuation (defaults to today), latest year end, operating figures, discount rate (refle
average cost of capital to your specific business), short term revenue growth rate, long term revenue growt
the long term, steady state growth of your company), and tax rate.
Step 2: Forecast the company's key financials and calculate the corresponding free cash flows.
Step 3: The spreadsheet discounts the projection period and terminal cash flows to today using the discoun
Step 4: The sum of future cash flows determines the aggregate value of the business today (summarized be

Outputs
Company Value $48.6
Company Value / 2015 Revenue 1.0x
Company Value / 2015 EBITDA 4.9x

Twelve Month Period Ending

12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019
50.0 53.0 56.0 59.0 61.9
-- 6.0% 5.7% 5.3% 5.0%

10.0 10.6 11.2 11.8 12.4

20.0% 20.0% 20.0% 20.0% 20.0%
3.0 3.2 3.4 3.5 3.7
6.0% 6.0% 6.0% 6.0% 6.0%
2.0 2.1 2.2 2.4 2.5
4.0% 4.0% 4.0% 4.0% 4.0%
5.0 5.3 5.6 5.9 6.2
10.0% 10.0% 10.0% 10.0% 10.0%

1.8 1.9 2.0 2.1 2.2

35.0% 35.0% 35.0% 35.0% 35.0%
3.3 3.4 3.6 3.8 4.0
 6.5% 6.5% 6.5% 6.5% 6.5%

3.0 3.2 3.4 3.5 3.7

6.0% 6.0% 6.0% 6.0% 6.0%
2.0 2.1 2.2 2.4 2.5
4.0% 4.0% 4.0% 4.0% 4.0%
(3.5) (3.7) (3.9) (4.1) (4.3)
(7.0%) (7.0%) (7.0%) (7.0%) (7.0%)
0.0 (0.0) (0.0) (0.0) (0.0)
0.0% (0.1%) (0.1%) (0.1%) (0.0%)
0.0 0.0 0.0 0.0 0.0
0.0% 0.0% 0.0% 0.0% 0.0%
4.8 5.0 5.3 5.6 5.9
9.5% 9.4% 9.4% 9.4% 9.5%

0.5 0.5 0.6 0.6 0.6

1.0% 1.0% 1.0% 1.0% 1.0%

s thereof are provided on an as is basis and your use of the Template is at your own risk. Axial makes no guarantees or warra
, or to any third party, for any lost profits, incidental, consequential, punitive, special, or indirect damages arising out of or in co

0.5 1.5 2.5 3.5

4.7 4.4 4.1 3.8

4.7 4.3 3.9 3.6
4.6 4.2 3.8 3.4

34.4
31.9
29.7

Terminal Value ("TV")

Perpetual Growth Rate
2.00% 3.00% 4.00%
 13.00% 68.2 75.7 84.9
Discount Rate 15.00% 57.7 63.1 69.5
17.00% 50.0 54.1 58.8

Implied EBITDA Multiple

Perpetual Growth Rate
2.00% 3.00% 4.00%
13.00% 4.7x 5.2x 5.8x
Discount Rate 15.00% 4.0x 4.4x 4.8x
17.00% 3.5x 3.8x 4.1x

Perpetual Growth Rate = 2.00% Perpetual Growth Rate = 3.00%

13.00% 15.00% 17.00% 13.00%

34.4 31.9 29.7 34.4

21.3 15.3 11.2 23.7
55.7 47.2 41.0 58.1

61.7% 67.6% 72.6% 59.2%

38.3% 32.4% 27.4% 40.8%

1.1x 0.9x 0.8x 1.2x

1.1x 0.9x 0.8x 1.1x
5.6x 4.7x 4.1x 5.8x
5.3x 4.5x 3.9x 5.5x
4.7x 4.0x 3.5x 5.2x

s thereof are provided on an as is basis and your use of the Template is at your own risk. Axial makes no guarantees or warran
, or to any third party, for any lost profits, incidental, consequential, punitive, special, or indirect damages arising out of or in co
 Legend
siness based on its future cash flows. Blue = Inputs
perating figures, discount rate (reflects the weighted Green = Linked to Inputs
owth rate, long term revenue growth rate (reflects Orange = Linked to Projections
Black = Calculations
nding free cash flows.
ash flows to today using the discount rate.
the business today (summarized below).

Notes on Model Assumptions

Model assumes that the following are constant a
Model assumes that revenue growth adjusts from
Model assumes a flat discount rate

Twelve Month Period Ending

12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025
64.8 67.6 70.3 72.9 75.4 77.6
4.7% 4.3% 4.0% 3.7% 3.3% 3.0%

13.0 13.5 14.1 14.6 15.1 15.5

20.0% 20.0% 20.0% 20.0% 20.0% 20.0%
3.9 4.1 4.2 4.4 4.5 4.7
6.0% 6.0% 6.0% 6.0% 6.0% 6.0%
2.6 2.7 2.8 2.9 3.0 3.1
4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
6.5 6.8 7.0 7.3 7.5 7.8
10.0% 10.0% 10.0% 10.0% 10.0% 10.0%

2.3 2.4 2.5 2.6 2.6 2.7

35.0% 35.0% 35.0% 35.0% 35.0% 35.0%
4.2 4.4 4.6 4.7 4.9 5.0
 6.5% 6.5% 6.5% 6.5% 6.5% 6.5%

3.9 4.1 4.2 4.4 4.5 4.7

6.0% 6.0% 6.0% 6.0% 6.0% 6.0%
2.6 2.7 2.8 2.9 3.0 3.1
4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
(4.5) (4.7) (4.9) (5.1) (5.3) (5.4)
(7.0%) (7.0%) (7.0%) (7.0%) (7.0%) (7.0%)
(0.0) (0.0) (0.0) (0.0) (0.0) (0.0)
(0.0%) (0.0%) (0.0%) (0.0%) (0.0%) (0.0%)
0.0 0.0 0.0 0.0 0.0 0.0
0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
6.1 6.4 6.7 6.9 7.1 7.4
9.5% 9.5% 9.5% 9.5% 9.5% 9.5%

0.6 0.7 0.7 0.7 0.8 0.8

1.0% 1.0% 1.0% 1.0% 1.0% 1.0%

xial makes no guarantees or warranties of any kind as to the adequacy, completeness,

rect damages arising out of or in connection with the use of the Template.

4.5 5.5 6.5 7.5 8.5 9.5

3.5 3.3 3.0 2.8 2.5 2.3

3.3 3.0 2.7 2.4 2.2 1.9
3.0 2.7 2.4 2.1 1.9 1.7

Present Value of TV
Perpetual Growth Rate
2.00% 3.00% 4.00%
 13.00% 21.3 23.7 26.6
Discount Rate 15.00% 15.3 16.7 18.4
17.00% 11.2 12.2 13.2

Perpetual Growth Rate = 3.00% Perpetual Growth Rate = 4.00%

15.00% 17.00% 13.00% 15.00% 17.00%

31.9 29.7 34.4 31.9 29.7

16.7 12.2 26.6 18.4 13.2
48.6 41.9 61.0 50.3 42.9

65.6% 71.0% 56.4% 63.4% 69.2%

34.4% 29.0% 43.6% 36.6% 30.8%

1.0x 0.8x 1.2x 1.0x 0.9x

0.9x 0.8x 1.2x 0.9x 0.8x
4.9x 4.2x 6.1x 5.0x 4.3x
4.6x 4.0x 5.8x 4.7x 4.1x
4.4x 3.8x 5.8x 4.8x 4.1x

xial makes no guarantees or warranties of any kind as to the adequacy, completeness,

rect damages arising out of or in connection with the use of the Template.
he following are constant as a % of revenue for all future years of the business: EBITDA, depreciation, amortization, capital expe
evenue growth adjusts from short to long term growth rate linearly over 10 years
discount rate
n, amortization, capital expenditures, level of working capital