Free Cash Flow of Mercury

2007

2008

2009

2010

Revenue

479,329

489,028

532,137

570,319

Less: Operating Expenses

423,837

427,333

465,110

498,535

Less: Corporate Overhead

8,487

8,659

9,422

10,098

EBIT

47,005

53,036

57,605

61,686

Less: Taxes

18,802

21,214

23,042

24,674

NOPAT

28,203

31,822

34,563

37,012

9,587

9,781

10,643

11,406

11,983

12,226

13,303

14,258

Less: Changes in Working Capital

4,567

2,649

9,805

8,687

Unlevered Free Cash Flow (UFCF)

21,240

26,728

22,098

25,473

19,175

21,783

16,259

16,919

Add: Depreciation
Less: Capital Expenditures

Terminal Value = FCF(1+g)/WACC-g

Discounted Cash Flow = FCF/1+g
Total Discounted Cash Flow

326,703

If Acquisition Price = Current Equity

214,067

NPV

112,636

h Flow of Mercury
2011
597,717
522,522
10,583
64,612
25,845
38,767
11,954
14,943
6,233
29,545
391,655
17,716

234,851