Car park valuation worked examples

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Discounted cash flow valuation (simplified example): especially relevant where trading levels and costs may vary for certain factors, e.g. new operations. Discounted c ash flow valuation Income Year 1 Year 2 Year 3 Year 4 Growth factor   5% 7.50% 2.50% Day sales 310,000 325,500 349,913 358,660 Contracts 20,000 21,000 22,575 23,139 Leased parking 15,000 15,750 16,931 17,355 Car wash 10,000 10,500 11,288 11,570   355,000 372,750 400,706 410,724 Income change %   5% 7.5% 2.5% Income per space 710 746 801 821 Operational costs Year 1 Year 2 Year 3 Year 4 Cost inflation (%)   5% 4% 3% Rent 0 0 0 0 Local tax/rates 55,000 57,750 60,060 61,862 Wages 45,000 47,250 49,140 50,614 Insurance 2,000 2,100 2,184 2,250 Equipment contracts 5,500 5,775 6,006 6,186 Repairs/maintenance 6,000 6,300 6,552 6,749 Utilities 11,000 11,550 12,012 12,372 Sundries 3,000 3,150 3,276 3,374 Head office/ management 11,000 11,550 12,012 12,372   138,500 145,425 151,242 155,779 Operating profit 216,500 227,325 249,464 254,945 Adjustments for EBITDA Interest, directors...