1. 1. EBITDA is computed in the excel sheet attached..
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Added on 2019-09-18
11. EBITDA is computed in the excel sheet attached. Depreciation and Amortization Expense is a charge to Income Statement. It is the writing off of the Fixed Asset Value over useful life. It is added to EBIT to arrive at the Actual Cash Flows. 2. Company’s Free Cash Flow at the end of 2020 is 5,32,157.3. The company is valued at 9,87,252.4. Price per share is 44.405. P/E Ratio = Price per share/Earnings per share = 44.40/8.92 = 4.98Earnings per share = 1,78,435/20,000 = 8.926. Valuation under Multiples of EBITDA = 2,36,044 * 4.98 = 11,75,499.Valuation under Multiples of EBITDA is greater than that under DCF Method.7. Gross Margin for the year 2018 is 49.08% (5,64,388/11,50,000). The Gross Margin component isvery huge. This is also known as Contribution. 8. ROE = (1,78,435/1,98,435) = 89.92%
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