There is a privately held company X Pvt. Ltd that is operating into the retail space, and is now scouting for angel investors. The details pertinent…

There is a privately held company X Pvt. Ltd that is operating into the retail space, and is now scouting for angel investors. The details pertinent to valuing X Pvt. Ltd are as follows – The company has achieved break even this year and has an EBITDA of 90 crore. The unleveraged beta based on the industry in which it operates is 1.8, and the average debt to equity ratio is hovering at 40:60. The rate of return provided by risk free liquid bonds is 5%. The EV is to be taken at a multiple of 5 on EBITDA. The accountant has informed that the EBITDA of 90 crore includes an extraordinary gain of 10 crore for the year, and a potential write off of preliminary sales promotion costs of 20 crore are still pending. The internal assessment of rate of market return for the industry is 11%. The FCFs for the next 3 years are as follows: Y1 Y2 Y3 Future Cash flows (₹ crore) 100 120 150 The post-tax cost of debt is 8.40%. Assume a tax regime of 30%. What is the potential value to be placed on X Pvt. Ltd? Note: While PV Factors values to be rounded off to 3 decimal points the other calculations to be rounded off to 2 decimal points.