Lion Nathan Limited (LNN)
Discount cash flow analysis
Sensitivity matrix
-1% |
Discount Rate % 0% |
1% |
||
---|---|---|---|---|
-1% | $11.26 | $11.06 | $10.87 | |
Terminal Growth% | 0 | $11.31 | $11.11 | $10.92 |
+1% | $11.36 | $11.17 | $10.97 |
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
- GordonGekko created a new valuation of $9.44 (overvalued by 17.98%) - over 8 years ago
- GordonGekko created a new valuation of $10.55 (overvalued by 8.34%) - over 8 years ago
- GordonGekko created a new valuation of $10.55 (overvalued by 8.34%) - over 8 years ago
- cfatwo created a new valuation of $11.11 (overvalued by 5.12%) - almost 9 years ago
- cfatwo created a new valuation of $8.82 (overvalued by 24.68%) - almost 9 years ago
- cfatwo created a new valuation of $8.82 (overvalued by 24.68%) - almost 9 years ago
- cfatwo created a new valuation of $11.05 (overvalued by 5.64%) - almost 9 years ago
- cfatwo created a new valuation of $9.87 (overvalued by 15.71%) - almost 9 years ago
- cfatwo created a new valuation of $5.72 (overvalued by 51.15%) - almost 9 years ago
- cfatwo created a new valuation of $6.04 (overvalued by 48.42%) - almost 9 years ago
- cfatwo created a new valuation of $7.13 (overvalued by 39.11%) - almost 9 years ago
- cfatwo created a new valuation of $6.24 (overvalued by 46.71%) - almost 9 years ago
- GordonGekko created a new valuation of $7.13 (overvalued by 9.86%) - almost 9 years ago
- coolieee created a new valuation of $7.13 (overvalued by 11.76%) - almost 9 years ago
- gordonsk created a new valuation of $7.13 (overvalued by 6.68%) - almost 9 years ago
- GordonGekko created a new valuation of $7.13 (overvalued by 13.05%) - almost 9 years ago
- KiwiEMH created a new valuation of $7.13 (overvalued by 10.88%) - over 9 years ago
- KiwiEMH created a new valuation of $9.09 (overvalued by 1.41%) - almost 10 years ago
- GordonGekko created a new valuation of $8.96 (undervalued by 4.55%) - almost 10 years ago
- Sam created a new valuation of $8.96 (undervalued by 4.55%) - almost 10 years ago
Comments
The boring details
All amounts in millions | Figures |
Enterprise Value: | 0 |
Net Debt (Long-term borrowings less cash): | 1,516 |
Equity Value: | 4,260 |
Number of Shares Outstanding: | 532,000,000 |
Calculated value per share: | $11.11 |
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.