DCF — MERCY HOSPITAL - ST. LOUIS
Enterprise Value: $1.7B
🛡️ Public data only — no PHI permitted on this instance.
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$1.7B
Enterprise Value
$459.8M
PV of Cash Flows
$1.2B
PV of Terminal Value
$2.0B
Terminal Value
10.0%
WACC
2.5%
Terminal Growth
Cash Flow Projections
PROJ| Year | Revenue | EBITDA | Margin | FCF | PV(FCF) |
|---|---|---|---|---|---|
| Year 1 | $1.4B | $199.7M | 14.0% | $98.2M | $89.2M |
| Year 2 | $1.5B | $220.4M | 15.0% | $112.2M | $92.7M |
| Year 3 | $1.5B | $242.2M | 16.0% | $126.9M | $95.3M |
| Year 4 | $1.6B | $257.3M | 16.0% | $136.6M | $93.3M |
| Year 5 | $1.6B | $269.0M | 17.0% | $143.7M | $89.2M |
Interpretation
INTAt a WACC of 10.0% and terminal growth of 2.5%, enterprise value is $1.7B. Terminal value accounts for 73% 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$1.4B
revenue growth rates[0.03, 0.03, 0.03, 0.03, 0.03]
ebitda margin base0.1346332283454181
ebitda margin improvement bps[50, 100, 100, 50, 25]
capex pct revenue0.04
nwc pct revenue0.08
tax rate0.25
projection years5