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
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter12: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 12.4E
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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
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