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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

Dollar3Point05
Arrow_up_green2.69% from latest share price

Your Valuation


Valuation Compared to price Member Created Views
$3.05 Arrow_up_green2.69% Valuecruncher 23 Nov 2008 0
$3.51 Arrow_up_green3.54% NZXCrunchBlog 23 Oct 2008 22
$3.85 Arrow_up_green2.94% KiwiEMH 02 Oct 2008 13
$3.49 Arrow_up_green2.05% KiwiEMH 26 Aug 2008 24
$3.89 Arrow_down_red-0.26% GordonGekko 25 Apr 2008 37

Recent Comments


Running The Numbers - Sky City (SKC.NZ)

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.

By NZXCrunchBlog, on the valuation by NZXCrunchBlog, about 1 month ago


WACC and LTG

WACC of 10% and LTG of 3%.

By GordonGekko, on the valuation by GordonGekko, 7 months ago


Latest Share Price: $2.97
Updated: 5 hours ago
Ticker: SKC
Market: NZE