Dear All,
I am doing a valuation of a Company. The cut-off date on which date the balance sheet and profit and loss account (actuals) are drawn is 31st Dec 2019. The projections have been prepared from 1st Jan 2020, i.e., Q4 of 2019-20 for 5 years. I have a couple of question:
1. While preparing the Free Cash Flow for the 1yr - Should it be for FY 2019-20 (including actuals + projections for Q4) or only for Q4 of FY2019-20?
2. If my 1st Year Free Cash Flow is From FY 2019-20 or Q4-FY2019-20, should my 5th year, end in FY 23-24 or FY 24-25.
3. Can I ignore the three months projection of Q4-FY2019-20 and take the First Year as FY 2020-21?
4. MAT Credit Entitlement (already available in the Books) - should it be added to the Enterprise Value at actuals or after discounting and will there be a difference in the application if the MAT Credit was generated in the projections (i.e., in the future)?
Thanks and regards,
--
Rajan
CAclubindia
