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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
106.25%
from latest share price
Your Valuation
| Valuation | Compared to price | Member |
 Created
|
Views |
|---|---|---|---|---|
| $1.65 |
106.25%
|
Valuecruncher | 23 Nov 2008 | 0 |
| $1.11 |
 0.0%
|
NZXCrunchBlog | 21 Oct 2008 | 30 |
| $1.07 |
1.9%
|
KiwiEMH | 14 Oct 2008 | 17 |
| $1.36 |
4.62%
|
KiwiEMH | 03 Oct 2008 | 15 |
| $1.62 |
0.62%
|
KiwiEMH | 26 Aug 2008 | 23 |
| $2.01 |
28.85%
|
selliott | 24 Aug 2008 | 25 |
| $1.73 |
-4.95%
|
KiwiEMH | 15 May 2008 | 50 |
| $1.85 |
1.65%
|
KiwiEMH | 07 May 2008 | 41 |
| $1.60 |
-12.09%
|
GordonGekko | 25 Apr 2008 | 39 |
Recent Comments
| Updated: | 1 hour ago |
| Ticker: | PPL |
| Market: | NZE |
This valuation is part of this blog post:
http://blog.valuecruncher.com/2008/10/running-the-numbers-pumpkin-patch-pplnz/
Assumptions
Revenue: Reuters aggregates seven analysts covering PPL.NZ and these analysts have mean estimates of 2009 revenues of NZ$441 million. For our analysis we have used NZ$425 million in 2009, NZ$450 million in 2010 and NZ$485 million in 2011.
Profitability: We have used an EBITDA margin of 12% in 2009 rising to 13% in 2011. Reuters has PPL.NZ‘s EBITD margin at 10.91% last year with a five-year average of 14.76%.
Capital Expenditure: We have assumed capital expenditures of NZ$18 million in 2009 rising to NZ$35 million in 2011 and then NZ$30 million beyond that.
Discount Rate: 11.0%. The PwC New Zealand cost of capital report [LINK] has PPL.NZ at a WACC of 13.5% with the wider NZ market at 9.5%. We feel that 13.5% is too high.
Terminal Growth Rate: 4.5%.
Our analysis incorporates the cash and debt the PPL.NZ balance sheet – Valuecruncher calculates a net debt number.
WACC at 14.0% per PwC Cost of Capital report.