XYZ Tech Services, a mid-sized IT support and software solutions provider, has decided to explore the possibility of selling the business to a strategic buyer or investor. With stable revenue streams, consistent profits,

XYZ Tech Services, a mid-sized IT support and software solutions provider, has decided to explore the possibility of selling the business to a strategic buyer or investor. With stable revenue streams, consistent profits, and a growing customer base, the owners believe it is the right time to capitalize on the company's value. To determine a fair selling price and support negotiations, the company engages you as a professional valuation expert to conduct a business valuation using the Income Approach specifically the Discounted Cash Flow (DCF) method. XYZ Tech Services is projected to generate the following cash flows during the next five years: Year Forecast Free Cash Flows (in ₹) 2025 14,00,000 2026 15,60,000 2027 18,20,000 2028 20,90,000 2029 23,50,000 Assuming the discount rate to be 10% and the terminal value of the business as ₹ 1,10,00,000, compute the estimated valuation of XYZ Tech Services. Assuming the exit year is Year 2029. PV Factors @ 10%: Year 1 Year 2 Year 3 Year 4 Year 5 0.909 0.826 0.751 0.683 0.621