DCF — MERCY HEALTH SYSTEM CORPORATION
Enterprise Value: $23.3M
🛡️ Public data only — no PHI permitted on this instance.
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$23.3M
Enterprise Value
$10.8M
PV of Cash Flows
$12.6M
PV of Terminal Value
$20.2M
Terminal Value
10.0%
WACC
2.5%
Terminal Growth
Cash Flow Projections
PROJ| Year | Revenue | EBITDA | Margin | FCF | PV(FCF) |
|---|---|---|---|---|---|
| Year 1 | $-133.9M | $-0.7M | 1.0% | $4.3M | $3.9M |
| Year 2 | $-137.9M | $-2.1M | 1.0% | $3.4M | $2.8M |
| Year 3 | $-142.1M | $-3.6M | 3.0% | $2.5M | $1.8M |
| Year 4 | $-146.3M | $-4.4M | 3.0% | $1.8M | $1.2M |
| Year 5 | $-150.7M | $-4.9M | 3.0% | $1.5M | $0.9M |
Interpretation
INTAt a WACC of 10.0% and terminal growth of 2.5%, enterprise value is $23.3M. Terminal value accounts for 54% of total EV — consider sensitivity to terminal assumptions.
Next steps: Check the LBO model to see equity returns at this entry price, or the EBITDA bridge to model value creation levers.
Assumptions
ASSMrevenue base$-130.0M
revenue growth rates[0.03, 0.03, 0.03, 0.03, 0.03]
ebitda margin base0.0
ebitda margin improvement bps[50, 100, 100, 50, 25]
capex pct revenue0.04
nwc pct revenue0.08
tax rate0.25
projection years5