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Sensitivity matrix
-1% |
Discount Rate % 0% |
1% |
||
---|---|---|---|---|
-1% | $0.82 | $0.80 | $0.77 | |
Terminal Growth% | 0 | $0.83 | $0.81 | $0.78 |
+1% | $0.84 | $0.82 | $0.79 |
How does a change in discount rate or terminal growth affect valuation?
This table shows the sensitivity of the valuation to two key variables - the discount rate and the terminal growth rate
Valuations and comments
- Scarydog created a new valuation of $0.98 (undervalued by 71.93%) - almost 7 years ago
- sambling created a new valuation of $0.35 (overvalued by 46.15%) - 7 years ago
- DarrylLundy created a new valuation of $0.78 (overvalued by 1.27%) - 7 years ago
- DarrylLundy created a new valuation of $0.78 (overvalued by 1.27%) - 7 years ago
- GordonGekko created a new valuation of $0.68 (undervalued by 1.49%) - over 7 years ago
- kuahyeow created a new valuation of $0.67 (overvalued by 2.9%) - over 7 years ago
- GordonGekko created a new valuation of $0.67 (overvalued by 2.9%) - over 7 years ago
- GordonGekko created a new valuation of $0.78 (undervalued by 18.18%) - over 7 years ago
- GordonGekko created a new valuation of $0.50 (undervalued by 13.64%) - over 7 years ago
- lwatson created a new valuation of $1.07 (undervalued by 143.18%) - over 7 years ago
- GordonGekko created a new valuation of $0.57 (undervalued by 14.0%) - over 7 years ago
- gordonsk created a new valuation of $0.47 (undervalued by 27.03%) - over 7 years ago
- da903 created a new valuation of $0.09 (overvalued by 75.68%) - over 7 years ago
- da903 created a new valuation of $0.00 (overvalued by 100.0%) - over 7 years ago
- da903 created a new valuation of $0.00 (overvalued by 100.0%) - over 7 years ago
- da903 created a new valuation of $1.72 (undervalued by 364.86%) - over 7 years ago
- da903 created a new valuation of $1.72 (undervalued by 364.86%) - over 7 years ago
- da903 created a new valuation of $4.27 (undervalued by 1054.05%) - over 7 years ago
- da903 created a new valuation of $0.00 (overvalued by 100.0%) - over 7 years ago
- da903 created a new valuation of $0.47 (undervalued by 27.03%) - over 7 years ago
- GordonGekko created a new valuation of $0.47 (overvalued by 9.62%) - over 7 years ago
- Bert created a new valuation of $2.95 (undervalued by 490.0%) - over 7 years ago
- NZXCrunchBlog created a new valuation of $1.33 (undervalued by 0.0%) - 8 years ago
- GordonGekko created a new valuation of $2.53 (overvalued by 4.89%) - over 8 years ago
- MarkC created a new valuation of $2.50 (overvalued by 6.02%) - over 8 years ago
- jeremy created a new valuation of $3.89 (undervalued by 52.55%) - over 8 years ago
Comments
The boring details
All amounts in millions | Figures |
Enterprise Value: | 1,455 |
Net Debt (Long-term borrowings less cash): | 528 |
Equity Value: | 923 |
Number of Shares Outstanding: | 724,000,000 |
Calculated value per share: | $0.81 |
Enterprise Value is the present value of the post-tax cash flows for a business into the future.
Where:
- C1, C2, C3 - the cash flow in period 1, 2, 3, ...
- r - the discount rate
To capture the cash flows into the future a terminal value is calculated via a perpetuity calculation -
based on the final years forecast post-tax free cash flow.
Where:
- Cn - the cash flow in the final forecast period.
- LTG - the long-term growth rate
- r - the discount rate
- g - the terminal growth rate
The Capital Asset Pricing Model (CAPM) is used to determine the equity component in the discount rate.
Where:
- rt - the risk free rate
- t - the tax rate
- B - the beta of the company
- MRP - the Market Risk Premium
Valuecruncher uses an estimate of Weighted Average Cost of Capital (WACC) to determine the discount rate in the calculation.