Monmouth Inc Figures in Million $

Operating Cash flow Projected

Actual 2003 2004
Net sales (5% per year growth) 55.3 58.1 61
Cost of goods (68%, 67%, 65%) 37.9 39.5 40.9
Selling & Admn 12.3 12.2 12.2
(22%,21%,20%,19%)
Depreciation 2.1 2.2 2.3
EBIT 3 4.2 5.6
Taxes (40%) 1.2 1.7 2.3
NOPAT(EBIAT) 1.8 2.5 3.4
Add back: Depreciation 2.1 2.2 2.3
Operating Cash flow 3.9 4.7 5.7
PPE 19
PPE/sales 0.344
2003 2004
Sales 58.1 61
Cost of goods sold 39.5 40.9
Selling and Admin 12.2 12.2
Depreciation 0.111 2.2 2.3
Operating Profit 4.2 5.6
Tax rate 40% 0.4 0.4
Tax 1.7 2.2
EBIT(1-t) 2.5 3.4
Add: Depreciation 2.2 2.3
Cash flow from operation 4.7 5.7
Capital expenditure -4 -3.5
WC / sales 20%on sales 0.2 0.2
WC 11.6 12.2
Increase ( Decrease) in WC -12.4 0.6
FCF 13.1 1.6
Discount 1.1 1.2
Discounted CF 12.0 1.4
Present value 69.3
Less : value of debt 12
Value of equity 57.3
Total value of equity 57300000
No. of shares 584000
value per equity share 98
2007
70.6
45.9
13.4

2.7
8.6
3.4
5.2
2.7
7.9

2005 2006 2007 Working 2002 2003

64 67.2 70.06 Sales 58.1
42.2 43.7 45.5 PPE/Sales 0.344
12.2 12.8 13.3 PPE 20.0
2.4 2.6 2.7 Dep/PPE 0.111 0.111
7.1 8.2 8.5 Depreciation 2.2
0.4 0.4 0.4 Gross PPE 21 22.2
2.9 3.3 3.4 1.2
4.3 4.9 5.1
2.4 2.6 2.7
6.7 7.5 7.8
-3.6 -3.8 -2.9
0.2 0.2 0.2
12.8 13.4 14.0
0.6 0.6 0.6
2.5 3.0 4.3
1.3 1.4 1.5
1.9 2.1 2.8 Terminal value 2.9
73.7
Terminal value at 0 49.0
 2004 2005 2006 2007
61 64 67.2 70.06
0.344 0.344 0.344 0.344
21.0 22.0 23.1 24.1
0.111 0.111 0.111 0.111
2.3 2.4 2.6 2.7
23.3 24.4 25.7 26.8
1.1 1.1 1.2 1.1