DCF Model — RightCortex Finance

Business Fundamentals

Base Year Revenue $50.0M

EBITDA Margin 25.0%

D&A (% Revenue) 4.0% ?

Capex (% Revenue) 5.0%

Change in Working Capital (% Rev) 2.0% ?

Tax Rate 28.0%

Growth Assumptions

Projection Period 10 yrs

Revenue Growth — Years 1–5 15.0%

Revenue Growth — Years 6+ 8.0%

Margin Expansion (p.a.) +0.5%

WACC — Discount Rate

Risk-Free Rate ? 4.5%

Equity Risk Premium ? 5.5%

Beta ? 1.2

Cost of Debt ? 6.0%

Debt / (Debt + Equity) ? 30%

Calculated WACC —

Terminal Value

Method

Terminal Growth Rate ? 2.5%

Exit EV/EBITDA Multiple ? 10.0×

Equity Bridge

Net Debt (positive = debt) ? $20.0M

Shares Outstanding (M) 10.0M

Equity Value
—
Intrinsic value

Price Per Share
—
Implied share price

Enterprise Value

—

EV = Equity + Net Debt

EV / EBITDA

—

Implied entry multiple

WACC Breakdown Cost of capital calculation

Free Cash Flow Projection —

Value Composition

Football Field Valuation range by method

Sensitivity — Equity Value WACC × Terminal Growth Rate

EV → Equity Bridge

Discounted Cash Flow Model