Tuesday, March 15, 2011

NOPLAT

NOPLAT
YearReal
1
Real
2
Nominal
2
Revenues100100 * 1.02 (*1) = 102102*1.15(*4)
EBITDA2727 * 1.02 (*1) = 27.5427.54*1.15(*4)
Depreciation12100 * 1.02 * 12.5% (*2) = 12.7512.75*1.15(*4)
EBIT27-12 = 1527.54 - 12.75 = 14.7914.79*1.15(*4)
Taxes614.79 * 0.40 (*3) = 5.9165.916*1.15(*4)
= 6.8034
NOPLAT (*5)15-6 = 914.79 * (1-0.40)
= 14.79-5.916
= 8.874
(14.79-5.916)*1.15
=10.2051
(*1) Real revenue growth rate (per year) = 2%
(*2) Real depreciation expense = 12.5% of future real revenues
(*3) Tax rate = 40% per year
(*4) Annual inflation rate (per year) = 15%
(*5) NOPLAT = EBIT * (1-t), or (Net operating profit - Adjusted tax) = EBIT - Taxes

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