case math

Market Sizing Volume

Population/ie. states, households, cars
x
Applicable customers%
x
Client Market share%

= volume

Revenue

Volume (or Seats x Occupancy%)
x
Price$
x
Frequency# in year
x
Locations

Costs

Operating = annual fixed+variable
COGS = cost per unit
Dep/amort = annual fixed
Interest/tax

Dep/amort

Purchase cost - salvage value (if any) / lifespan

Profit

Revenue x Profit%
or
Revenue - Costs

Profit Margin%

Profit/Revenue

Weighted Average Profit Margin

product’s % of total volume
x
product’s profit margin%
= product’s profit% of total profit

Breakeven Units

Amount needed to cover (ie. investment or revenue gap) / Unit contribution margin

Breakeven Revenue

Breakeven Units x Price per Unit

Payback years

Investment / Profit or cost savings

Hurdle or Discount Rate%

WACC + Risk premium - Growth Rate

ROI%

Profit / Investment or cost savings

Present Value (PV)

Profit / Discount Rate%

Enterprise Value (EV)

= market cap + debt - cash
= EBITDA x EBITDA industry multiple

Market Capitalization

share price$ x outstanding shares

NPV (in perpetuity)

PV or EV - Investment

NPV (set time)

- payback years

- (year 1 profit x 0.9) + (year 2 profit x 0.8) + (year 3 profit x 0.7)

US Population

350M

US State

7M (350/50)

Households

/3

Per age

/80

Per decade

/8

Canada Population

40M

Toronto Population

3M

Each euro country population

100M

China/India Population

1.5B

Canada is what% of US

10%