A startup, ”SwiftLink,” provides logistics software. You are…
A startup, ”SwiftLink,” provides logistics software. You are tasked with valuing the company using a DCF model. The forecast period is two years. The WACC is 20%, and the long-term growth rate (g) for terminal value calculation is 4%. The company’s projected financials are below (in millions). Calculate the total value of SwiftLink today. Item Year 1 Year 2 EBIT $20 $80 Tax Rate 30% 30% Depreciation $5 $8 CAPEX -$15 -$30 Increase in NWC -$10 -$10