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How does this work?
A valuation is an assessment of the value of one share in a company, it is not necessarily the same as the price listed in the sharemarket. You can use a variety of methods to value a company, Valuecruncher uses Discounted Cash Flow (DCF) analysis to help people create the valuations you see below.
Valuecruncher Valuation
2.69%
from latest share price
Your Valuation
| Valuation | Compared to price | Member |
 Created
|
Views |
|---|---|---|---|---|
| $3.05 |
2.69%
|
Valuecruncher | 23 Nov 2008 | 0 |
| $3.51 |
3.54%
|
NZXCrunchBlog | 23 Oct 2008 | 22 |
| $3.85 |
2.94%
|
KiwiEMH | 02 Oct 2008 | 13 |
| $3.49 |
2.05%
|
KiwiEMH | 26 Aug 2008 | 24 |
| $3.89 |
 -0.26%
|
GordonGekko | 25 Apr 2008 | 37 |
Recent Comments
| Updated: | 5 hours ago |
| Ticker: | SKC |
| Market: | NZE |
This valuation is part of this blog post:
http://blog.valuecruncher.com/2008/10/running-the-numbers-sky-city-skcnz/
Assumptions
Revenue: Reuters aggregates eight analysts covering SKC.NZ and these analysts have mean estimates of 2009 and 2010 revenues of NZ$853.3 million and NZ$888.3 million respectively. For our analysis we have used NZ$850.0 million in 2009, NZ$885 million in 2010 and NZ$915 million in 2011.
Profitability: We have used an EBITDA margin of 35% in 2009 rising to 36% in 2011. Reuters has SKC.NZ‘s EBITD margin at 29.6% last year and an average of 36.8% over the last five-years.
Capital Expenditure: We have assumed capital expenditures of NZ$90.0 million in 2009 then NZ$75 million moving forward.
Discount Rate: 10.0%. The PwC New Zealand cost of capital report has SKC.NZ at a WACC of 10.8% with the wider NZ market at 9.5%. We feel that 10.8% is too high. We believe there is an argument for a discount rate anywhere in the 8-10% range for SKC.NZ.
Terminal Growth Rate: 3.0%. The New Zealand economy has grown at an average rate of 2.6% over the last five-years. We see SKC.NZ growing broadly in-line with this moving forward.
Our analysis incorporates the cash and debt the SKC.NZ balance sheet – Valuecruncher calculates a net debt number.
WACC of 10% and LTG of 3%.