DCF — STRONG MEMORIAL HOSPITAL
Enterprise Value: $1.1B
🛡️ Public data only — no PHI permitted on this instance.
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$1.1B
Enterprise Value
$249.9M
PV of Cash Flows
$888.0M
PV of Terminal Value
$1.4B
Terminal Value
10.0%
WACC
2.5%
Terminal Growth
Cash Flow Projections
PROJ| Year | Revenue | EBITDA | Margin | FCF | PV(FCF) |
|---|---|---|---|---|---|
| Year 1 | $3.4B | $194.3M | 6.0% | $22.6M | $20.5M |
| Year 2 | $3.5B | $235.3M | 7.0% | $49.6M | $41.0M |
| Year 3 | $3.6B | $278.6M | 8.0% | $78.3M | $58.8M |
| Year 4 | $3.7B | $305.6M | 8.0% | $94.6M | $64.6M |
| Year 5 | $3.8B | $324.4M | 8.0% | $104.6M | $65.0M |
Interpretation
INTAt a WACC of 10.0% and terminal growth of 2.5%, enterprise value is $1.1B. Terminal value accounts for 78% 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$3.3B
revenue growth rates[0.03, 0.03, 0.03, 0.03, 0.03]
ebitda margin base0.05191404657023475
ebitda margin improvement bps[50, 100, 100, 50, 25]
capex pct revenue0.04
nwc pct revenue0.08
tax rate0.25
projection years5