Question

What is Company XYZ's intrinsic equity value under the Low Case, using the WACC as the discount rate and assuming the terminal value is based on the EBITDA exit multiple assumption outlined on the "Control Panel" tab?

Answer 1

To calculate the intrinsic equity value of Company XYZ under the Low Case, use the WACC as the discount rate and assume the terminal value based on the EBITDA exit multiple assumption.

Step-by-step explanation:

To calculate the intrinsic equity value of Company XYZ under the Low Case, we need to use the Weighted Average Cost of Capital (WACC) as the discount rate and assume the terminal value based on the EBITDA exit multiple assumption outlined on the 'Control Panel' tab. The steps to calculate the intrinsic equity value are as follows:

1. Determine the free cash flows to equity (FCFE) for each year.
2. Calculate the present value of each year's FCFE using the WACC as the discount rate.
3. Add up all the present values to get the total present value.
4. Divide the total present value by the number of shares to get the intrinsic equity value per share.

It's important to note that to perform these calculations, you would need more specific information about Company XYZ's financials and the EBITDA exit multiple assumption.