Angle Energy

Growth rate assumption: The assumed revenue growth rate for Angle Energy Inc (NGL) is -7.82% which is obtained by calculating the average annual growth rate for a 5 year period starting from 2008 to 2012. A negative growth rate implies that the company is projected to decrease its annual revenue at a rate of 7.82% during the next 5 years. This implies that there will also be a decline in the EBIT, and an increase in depreciation and amortization resulting in a negative FCFF values for the projected 5 years. The negative FCFF indicates that Angle Energy is likely to generate lower revenues than its expenses and investment costs for the projected period. Since the DCF values are negative for the projected 5 year period, this intimates that the company’s current business strategy will result in losses since the value of investment over the 5 year period has a negative present value.