DCF — METHODIST HOSPITAL
Enterprise Value: $1.5B
🛡️ Public data only — no PHI permitted on this instance.
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$1.5B
Enterprise Value
$392.1M
PV of Cash Flows
$1.1B
PV of Terminal Value
$1.8B
Terminal Value
10.0%
WACC
2.5%
Terminal Growth
Cash Flow Projections
PROJ| Year | Revenue | EBITDA | Margin | FCF | PV(FCF) |
|---|---|---|---|---|---|
| Year 1 | $2.5B | $211.6M | 8.0% | $68.9M | $62.6M |
| Year 2 | $2.6B | $243.6M | 9.0% | $90.2M | $74.5M |
| Year 3 | $2.6B | $277.3M | 10.0% | $112.7M | $84.7M |
| Year 4 | $2.7B | $299.3M | 11.0% | $126.3M | $86.3M |
| Year 5 | $2.8B | $315.3M | 11.0% | $135.3M | $84.0M |
Interpretation
INTAt a WACC of 10.0% and terminal growth of 2.5%, enterprise value is $1.5B. 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$2.4B
revenue growth rates[0.03, 0.03, 0.03, 0.03, 0.03]
ebitda margin base0.07999999983452424
ebitda margin improvement bps[50, 100, 100, 50, 25]
capex pct revenue0.04
nwc pct revenue0.08
tax rate0.25
projection years5