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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
168.91%
from latest share price
Your Valuation
| Valuation | Compared to price | Member |
 Created
|
Views |
|---|---|---|---|---|
| $17.56 |
168.91%
|
Valuecruncher | 23 Nov 2008 | 0 |
| $23.21 |
20.45%
|
TheCrunchBlog | 14 Aug 2008 | 94 |
Recent Comments
| Updated: | 5 hours ago |
| Ticker: | EXPE |
| Market: | NASD |
This valuation is part of this blog post:
http://blog.valuecruncher.com/2008/08/expedia-expe-the-on-line-travel-site-looks-a-buy/
EXPE grew revenues from US$1.8 billion in 2004 to US$2.7 billion in 2007 – a 14% compound annual growth rate. Our assumptions of revenues for the next three years are US$3.0 billion in 2008 growing to US$3.75 billion in 2010 – a 12% compound annual growth rate (2007-10). We have projected EBITDA margins to be flat at 25% to 2010. We have used a terminal growth rate of 3.75%. We calculated this terminal growth rate based on year three (2009-10) growth of 10% dropping to a 3.0% stable growth rate by year 10. We used a terminal capital expenditure number of US$150 million. We have used a WACC (discount rate) of 12.0%.
The key assumptions as we see them are:
EXPE Revenues for the next three years. We believe that 12% per annum growth (2007-10) is a reasonable estimate.
EXPE WACC. We view EXPE’s WACC in the 11-13% range. We took a mid-point. This discount rate is intended to reflect the potential uncertainties of the EXPE cash flows in the near term.