SKY Network Television Limited (SKT)
Discount cash flow analysis
Sensitivity matrix
|
-1% |
Discount Rate % 0% |
1% |
||
|---|---|---|---|---|
| -1% | $5.17 | $5.07 | $4.96 | |
| Terminal Growth% | 0 | $5.22 | $5.11 | $5.00 |
| +1% | $5.26 | $5.15 | $5.05 |
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 $4.88 (undervalued by 1.88%) - 18 hours ago
- GordonGekko created a new valuation of $5.14 (undervalued by 18.16%) - 1 year ago
- Lespe959 created a new valuation of $5.11 (undervalued by 15.61%) - 1 year ago
- gordonsk created a new valuation of $5.08 (undervalued by 30.26%) - 1 year ago
- GordonGekko created a new valuation of $5.06 (undervalued by 32.81%) - 1 year ago
- NZXCrunchBlog created a new valuation of $5.38 (undervalued by 31.22%) - 1 year ago
- KiwiEMH created a new valuation of $4.76 (overvalued by 1.86%) - 1 year ago
- GordonGekko created a new valuation of $4.55 (overvalued by 1.09%) - over 2 years ago
Comments
The boring details
| All amounts in millions | Figures |
| Enterprise Value: | 2,353 |
| Net Debt (Long-term borrowings less cash): | 489 |
| Equity Value: | 1,720 |
| Number of Shares Outstanding: | 389,000,000 |
| Calculated value per share: | $5.11 |
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.