Woolworths Limited (WOW)
Discount cash flow analysis
Sensitivity matrix
|
-1% |
Discount Rate % 0% |
1% |
||
|---|---|---|---|---|
| -1% | $25.32 | $24.91 | $24.52 | |
| Terminal Growth% | 0 | $25.45 | $25.04 | $24.64 |
| +1% | $25.58 | $25.17 | $24.77 |
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
- Valuecruncher created a new valuation of $16.24 (overvalued by 51.46%) - 5 hours ago
- Josephyong created a new valuation of $41.27 (undervalued by 41.14%) - 8 months ago
- Josephyong created a new valuation of $17.09 (overvalued by 41.55%) - 8 months ago
- billdawsydney created a new valuation of $26.59 (undervalued by 7.35%) - 1 year ago
- billdawsydney created a new valuation of $26.41 (undervalued by 6.62%) - 1 year ago
- kewen13 created a new valuation of $20.83 (overvalued by 23.92%) - over 2 years ago
- kewen13 created a new valuation of $24.30 (overvalued by 8.82%) - over 2 years ago
- bmanishs created a new valuation of $26.47 (overvalued by 8.98%) - over 3 years ago
- vietboii created a new valuation of $73.78 (undervalued by 155.21%) - over 3 years ago
- vietboii created a new valuation of $15.39 (overvalued by 46.77%) - over 3 years ago
- vietboii created a new valuation of $24.14 (overvalued by 14.37%) - over 3 years ago
- nat4bash created a new valuation of $24.88 (overvalued by 3.72%) - over 4 years ago
- nat4bash created a new valuation of $25.01 (overvalued by 3.21%) - over 4 years ago
- nat4bash created a new valuation of $25.06 (overvalued by 3.02%) - over 4 years ago
- nat4bash created a new valuation of $25.85 (undervalued by 0.04%) - over 4 years ago
- nat4bash created a new valuation of $19.16 (overvalued by 25.85%) - over 4 years ago
- nat4bash created a new valuation of $19.09 (overvalued by 26.12%) - over 4 years ago
- nat4bash created a new valuation of $16.35 (overvalued by 36.73%) - over 4 years ago
- nat4bash created a new valuation of $26.54 (undervalued by 2.71%) - over 4 years ago
- Lespe959 created a new valuation of $25.27 (overvalued by 0.9%) - over 4 years ago
- gordonsk created a new valuation of $25.04 (undervalued by 1.17%) - over 4 years ago
- JStew82 created a new valuation of $26.77 (undervalued by 1.56%) - over 5 years ago
- Sam created a new valuation of $26.47 (overvalued by 5.77%) - over 5 years ago
Comments
The boring details
| All amounts in millions | Figures |
| Enterprise Value: | 43,299 |
| Net Debt (Long-term borrowings less cash): | 2,291 |
| Equity Value: | 30,333 |
| Number of Shares Outstanding: | 1,225,000,000 |
| Calculated value per share: | $25.04 |
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.