Vindhya Cements (a hypothetical listed company) is being valued ahead of an investment committee. You have the operating assumptions below. Build a three-year discounted cash flow with a Gordon-growth terminal value and arrive at a value per share.
All figures are ₹ crore except per-share values. Cash flows arrive at the end of each year; discount FY27 by one year, FY28 by two and FY29 by three.
| input | value |
|---|---|
| FY26 revenue | 5,000 |
| Revenue growth, FY27–FY29 | 12% a year |
| EBITDA margin | 20% of revenue |
| Depreciation & amortisation | 4% of revenue |
| Tax rate | 25% of EBIT |
| Capex | 6% of revenue |
| Increase in working capital | 10% of the year's increase in revenue |
| WACC | 11% |
| Terminal growth rate (after FY29) | 5% |
| Net debt | 2,000 |
| Shares outstanding | 50 crore |
Fill every cell. Each is checked against a 2% band, so rounding is fine — a wrong formula is not.
Free cash flow = EBIT × (1 − tax) + D&A − capex − increase in working capital, where EBIT = EBITDA − D&A.
Work down the sheet: revenue, then free cash flow, then present values, then terminal value and enterprise value, then equity.