DCF — MAYO CLINIC HOSPITAL ROCHESTER
Enterprise Value: $2.2B
🛡️ Public data only — no PHI permitted on this instance.
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$2.2B
Enterprise Value
$558.9M
PV of Cash Flows
$1.6B
PV of Terminal Value
$2.6B
Terminal Value
10.0%
WACC
2.5%
Terminal Growth
Cash Flow Projections
PROJ| Year | Revenue | EBITDA | Margin | FCF | PV(FCF) |
|---|---|---|---|---|---|
| Year 1 | $3.5B | $301.6M | 8.0% | $98.2M | $89.3M |
| Year 2 | $3.7B | $347.2M | 9.0% | $128.6M | $106.2M |
| Year 3 | $3.8B | $395.3M | 10.0% | $160.6M | $120.7M |
| Year 4 | $3.9B | $426.6M | 11.0% | $180.0M | $122.9M |
| Year 5 | $4.0B | $449.3M | 11.0% | $192.9M | $119.8M |
Interpretation
INTAt a WACC of 10.0% and terminal growth of 2.5%, enterprise value is $2.2B. Terminal value accounts for 75% of total EV — typical range (60-80%).
Next steps: Check the LBO model to see equity returns at this entry price, or the EBITDA bridge to model value creation levers.
Assumptions
ASSMrevenue base$3.4B
revenue growth rates[0.03, 0.03, 0.03, 0.03, 0.03]
ebitda margin base0.07999999994195149
ebitda margin improvement bps[50, 100, 100, 50, 25]
capex pct revenue0.04
nwc pct revenue0.08
tax rate0.25
projection years5