Share Price vs. Fair Value
Below are the data sources, inputs and calculation used to determine the intrinsic value for Sopharma AD.
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
Discounted Cash Flow Calculation for BUL:SFA using Dividend Discount Model
The calculations below outline how an intrinsic value for Sopharma AD is arrived at by discounting future dividends to their present value. This approach is used for companies that consistently pay out a meaningful portion of their earnings as dividends.
If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.
See our documentation to learn about this calculation.
Learn more about our DCF calculations in Simply Wall St’s analysis model.
Малко поводи за размисъл ;-)
Below are the data sources, inputs and calculation used to determine the intrinsic value for Sopharma AD.
Valuation Model | Dividend Discount Model | |
Dividend Per Share | Expected Dividends (31.12.2023 г.) in BGN | BGN 0.3 |
Payout Ratio | Company Filings (31.12.2023 г.) | 6.8% |
Discount Rate (Cost of Equity) | See below | 7.7% |
Perpetual Growth Rate | Capped @ (2.18%, from 12.23%) | 2.2% |
Risk-Free Rate | 5-Year Average of BG Long-Term Govt Bond Rate | 2.2% |
Equity Risk Premium | S&P Global | 6.9% |
Pharmaceuticals Unlevered Beta | Simply Wall St/ S&P Global | 0.53 |
Re-levered Beta | = 0.33 + [(0.66 * Unlevered beta) * (1 + (1 - tax rate) (Debt/Market Equity))] = 0.33 + [(0.66 * 0.535) * (1 + (1 - 10.0%) (34.64%))] |
0.483 |
Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.8 |
Discount Rate/ Cost of Equity | = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 2.18% + (0.800 * 6.94%) |
7.73% |
Discounted Cash Flow Calculation for BUL:SFA using Dividend Discount Model
The calculations below outline how an intrinsic value for Sopharma AD is arrived at by discounting future dividends to their present value. This approach is used for companies that consistently pay out a meaningful portion of their earnings as dividends.
If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.
See our documentation to learn about this calculation.
Value per share | = Expected dividends per share / (Discount Rate - Perpetual growth rate) BGN0.30 / (7.73% - 2.18%) |
BGN5.4 |
Value per share (BGN) | From above. | BGN5.4 |
Current discount | Discount to share price of BGN6.34 = (BGN5.4 - BGN6.34) / BGN5.4 |
-17.3% |
Малко поводи за размисъл ;-)
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