DCF — MEMORIAL HERMANN HOSPITAL SYS
Enterprise Value: $1.2B
🛡️ Public data only — no PHI permitted on this instance.
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$1.2B
Enterprise Value
$299.0M
PV of Cash Flows
$902.3M
PV of Terminal Value
$1.5B
Terminal Value
10.0%
WACC
2.5%
Terminal Growth
Cash Flow Projections
PROJ| Year | Revenue | EBITDA | Margin | FCF | PV(FCF) |
|---|---|---|---|---|---|
| Year 1 | $2.2B | $171.5M | 8.0% | $48.9M | $44.5M |
| Year 2 | $2.3B | $199.4M | 9.0% | $67.4M | $55.7M |
| Year 3 | $2.3B | $228.8M | 10.0% | $87.0M | $65.4M |
| Year 4 | $2.4B | $247.8M | 10.0% | $98.7M | $67.4M |
| Year 5 | $2.5B | $261.4M | 11.0% | $106.3M | $66.0M |
Interpretation
INTAt a WACC of 10.0% and terminal growth of 2.5%, enterprise value is $1.2B. 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$2.1B
revenue growth rates[0.03, 0.03, 0.03, 0.03, 0.03]
ebitda margin base0.07261780627316156
ebitda margin improvement bps[50, 100, 100, 50, 25]
capex pct revenue0.04
nwc pct revenue0.08
tax rate0.25
projection years5