Airbus calulation template.xls

Simplified Valuation Analysis for Airbus A3XX $ millions Year 2000 2001 2002 2003 2004 2005 Research and Dev 1100 2200 2200 2200 1320 Capital Exp. 0 250 350 350 50 Net Working Capital 0 150 300 300 200 Required Investment 1100 2600 2850 2850 1570 From Ex 10 Find C. I for R&D 1100 3300 5500 7700 9020 Find C. I for Cap Exp 0 250 600 950 1000 Find C. I for NWC 0 150 450 750 950 Cumulative investment From Ex 10 Cash Flows (A) R & D Expense -1100 -2200 -2200 -2200 -1320 Depreciation (B) 0 -25 -60 -95 -100 EBT -1100 -2225 -2260 -2295 -1420 Taxes (C) 38% -418 -845.5 -858.8 -872.1 -539.6 EBAT -682 -1379.5 -1401.2 -1422.9 -880.4 Depreciation add 0 25 60 95 100 Capital Expenditure subtract 0 250 350 350 50 increase in NWC subtract 0 150 300 300 200 Free Cash Flow -682 -1754.5 -1991.2 -1977.9 -1030.4 Discount Rate (E) Rf (pg 8) beta (pg 8 risk Prem 0.11 0.06 0.84 0.06 PV of Investment ### A3XX sales Revenues Price per plane No. of planes Operating margin 0.18 Operating Profit Dep. Adjustment (F) Adj Op. Profit Tax rate 0.38 Cash flows Growing Perpetuity

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Transcript of Airbus calulation template.xls

Simplified Valuation Analysis for Airbus A3XX

$ millionsYear 2000 2001 2002 2003 2004 2005 2006

Research and Dev 1100 2200 2200 2200 1320 880Capital Exp. 0 250 350 350 50 0Net Working Capital 0 150 300 300 200 50Required Investment 1100 2600 2850 2850 1570 930From Ex 10

Find C. I for R&D 1100 3300 5500 7700 9020 9900Find C. I for Cap Exp 0 250 600 950 1000 1000Find C. I for NWC 0 150 450 750 950 1000Cumulative investmentFrom Ex 10

Cash Flows (A)R & D Expense -1100 -2200 -2200 -2200 -1320 -880Depreciation (B) 0 -25 -60 -95 -100 -100

EBT -1100 -2225 -2260 -2295 -1420 -980

Taxes (C) 38% -418 -845.5 -858.8 -872.1 -539.6 -372.4

EBAT -682 -1379.5 -1401.2 -1422.9 -880.4 -607.6

Depreciation add 0 25 60 95 100 100Capital Expenditure (D) subtract 0 250 350 350 50 100increase in NWC subtract 0 150 300 300 200 50

Free Cash Flow -682 -1754.5 -1991.2 -1977.9 -1030.4 -657.6

Discount Rate (E) Rf (pg 8) beta (pg 8) risk Prem0.11 0.06 0.84 0.06

PV of Investment ($6,132.57)

A3XX salesRevenuesPrice per planeNo. of planesOperating margin 0.18Operating ProfitDep. Adjustment (F)Adj Op. ProfitTax rate 0.38Cash flows

Growing Perpetuity

value in 2007growth rate (pg 8) 0.02present value $6,244.65

NPV $112.08

A) The cashflows ignore the tax impact of launch aid, which is taxable when received. It also ignoress cashflow associated with pre-payments and progress payments of for planes.

B) Assumes straight line depreciation over 10 yrs (pg 8). After 2005 Depriciation equals net working capital. The co. is in full capacity in 2008 and hrowth comes from inflation 2%.

C) Assume Airbus can use tax loss. The tax rate is 38%

D) After 2005 Depriciation equals net working capital.

E) Cost of capital assumption are in page 8 and computed above.

F) Add back depriciation to avoid double counting.

2007 2008 Total

660 440 110000 0 10000 0 1000

660 440 13000

10560 110001000 10001000 1000

-660 -440-100 -100

-760 -540

-288.8 -205.2

-471.2 -334.8

100 100100 100

0 0

-471.2 -334.8

9900225

1782100

1882715.16

1166.84

12964.89

A) The cashflows ignore the tax impact of launch aid, which is taxable when received. It also ignoress cashflow associated with pre-payments and progress payments of for planes.

B) Assumes straight line depreciation over 10 yrs (pg 8). After 2005 Depriciation equals net working capital. The co. is in full capacity in 2008 and hrowth comes from inflation 2%.