Here is a table from Canaccord's 'sum of the parts' valuation of InterCare. InterCare is one of the leading vertically integrated medical cannabis operators in Israel by market share (at -15%), with a primary focus on producing pharmaceutical-grade, GMP-certified branded products. Figure 29: Valuation of Israeli opportunity (medical only) USSMMS Est. Domestic Sales (medical only) Est. INCR Israel EBITDA EBITDA Margin Taxes Working Capital Capex Free Cash Flow Terminal Value PV of Cash Flow Discount Rate Terminal Growth Present Value of FCF (US$) Ownership adj. for retail JV Value of INCR Israel (US$) # of shares outstanding (FD) Value per share (US$) Select one: $ O a. DeltaNOWC O b. NOWC O c. CA-CL O d. $ $ $ $ $ $ $ 2020E 18.9 $ 4.9 $ 26% 1.1 S 1.2 10.0 (7.5) $ (7.5) $ 12% 2% 457 Source: Company Reports, Canaccord Genuity estimates The item 'WorkingCapital' is badly named. It should be called: Acronyms: NOWC= net operating working capital. 90% 410 42.7 9.60 2021E 66.0 $ 25.1 $ 38% 5.8 $ 5.0 15.0 (0.7) $ (0.7) $ CA-Cash-MarketableSecurities - (CL - InterestBearing CurrentLiabilities) 2022E... 98.0 $ 39.2 $ 40% 9.0 $ 3.5 15.0 11.7 $ 11.0 $ 2028E 191.1 $ 86.0 $ 45% 19.8 $ 0.4 5.0 60.8 $ 28.3 $ 2029E 193.8 $ 87.2 $ 45% 20.1 $ 0.3 5.0 61.8 $ $ 25.6 $ 2030E 196.5 88.4 45% 20.3 0.3 5.0 62.8 598.5 247.6
Here is a table from Canaccord's 'sum of the parts' valuation of InterCare. InterCare is one of the leading vertically integrated medical cannabis operators in Israel by market share (at -15%), with a primary focus on producing pharmaceutical-grade, GMP-certified branded products. Figure 29: Valuation of Israeli opportunity (medical only) USSMMS Est. Domestic Sales (medical only) Est. INCR Israel EBITDA EBITDA Margin Taxes Working Capital Capex Free Cash Flow Terminal Value PV of Cash Flow Discount Rate Terminal Growth Present Value of FCF (US$) Ownership adj. for retail JV Value of INCR Israel (US$) # of shares outstanding (FD) Value per share (US$) Select one: $ O a. DeltaNOWC O b. NOWC O c. CA-CL O d. $ $ $ $ $ $ $ 2020E 18.9 $ 4.9 $ 26% 1.1 S 1.2 10.0 (7.5) $ (7.5) $ 12% 2% 457 Source: Company Reports, Canaccord Genuity estimates The item 'WorkingCapital' is badly named. It should be called: Acronyms: NOWC= net operating working capital. 90% 410 42.7 9.60 2021E 66.0 $ 25.1 $ 38% 5.8 $ 5.0 15.0 (0.7) $ (0.7) $ CA-Cash-MarketableSecurities - (CL - InterestBearing CurrentLiabilities) 2022E... 98.0 $ 39.2 $ 40% 9.0 $ 3.5 15.0 11.7 $ 11.0 $ 2028E 191.1 $ 86.0 $ 45% 19.8 $ 0.4 5.0 60.8 $ 28.3 $ 2029E 193.8 $ 87.2 $ 45% 20.1 $ 0.3 5.0 61.8 $ $ 25.6 $ 2030E 196.5 88.4 45% 20.3 0.3 5.0 62.8 598.5 247.6
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:Here is a table from Canaccord's 'sum of the parts' valuation of InterCare. InterCare is one of the leading vertically integrated medical cannabis operators in Israel by market share (at -15%), with a primary focus on producing pharmaceutical-grade, GMP-certified branded products.
Figure 29: Valuation of Israeli opportunity (medical only)
US$MMs
Est. Domestic Sales (medical only)
Est. INCR Israel EBITDA
EBITDA Margin
Taxes
Working Capital
Capex
Free Cash Flow
Terminal Value
PV of Cash Flow
Discount Rate
Terminal Growth
Present Value of FCF (US$)
Ownership adj. for retail JV
Value of INCR Israel (US$)
# of shares outstanding (FD)
Value per share (US$)
Select one:
$
$
DeltaNOWC
$
$
$
$
$
$
2020E
18.9 $
Source: Company Reports, Canaccord Genuity estimates
The item 'WorkingCapital' is badly named. It should be called:
Acronyms: NOWC = net operating working capital.
4.9 $
26%
1.1
1.2
10.0
(7.5) $
(7.5) $
12%
2%
457
90%
410
42.7
9.60
$
2021E
66.0 $
25.1 $
38%
5.8 $
5.0
15.0
(0.7) $
(0.7) $
O a.
O b. NOWC
O c. CA - CL
O d. CA-Cash-Marketable Securities - (CL - InterestBearing CurrentLiabilities)
2022E...
98.0
39.2
40%
9.0
3.5
15.0
11.7
11.0
$
$
$
$
$
2028E
191.1 $
86.0 $
45%
19.8 $
0.4
5.0
60.8
$
28.3 $
2029E
193.8
87.2
45%
20.1
0.3
61.8
25.6
$
$
$
$
$
$
2030E
196.5
88.4
45%
20.3
0.3
5.0
62.8
598.5
247.6
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education