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Valuation Model | 2 Stage Free Cash Flow to Equity | |
Levered Free Cash Flow | Up to 1 Analyst Estimates on Average (S&P Global) | See below |
Discount Rate (Cost of Equity) | See below | 10.6% |
Perpetual Growth Rate | 5-Year Average of BG Long-Term Govt Bond Rate | 3.0% |
Risk-Free Rate | 5-Year Average of BG Long-Term Govt Bond Rate | 3.0% |
Equity Risk Premium | S&P Global | 6.9% |
Electronic Unlevered Beta | Simply Wall St/ S&P Global | 1.14 |
Re-levered Beta | = 0.33 + [(0.66 * Unlevered beta) * (1 + (1 - tax rate) (Debt/Market Equity))] = 0.33 + [(0.66 * 1.139) * (1 + (1 - 10.0%) (0.17%))] |
1.094 |
Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.094 |
Discount Rate/ Cost of Equity | = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 3.01% + (1.094 * 6.94%) |
10.60% |
2024 | 2 | Analyst x1 | 1,81 |
2025 | 22,6 | Analyst x1 | 18,47 |
2026 | 34,2 | Analyst x1 | 25,28 |
2027 | 43,51 | Est @ 27.22% | 29,07 |
2028 | 52,19 | Est @ 19.96% | 31,53 |
2029 | 59,96 | Est @ 14.87% | 32,75 |
2030 | 66,74 | Est @ 11.31% | 32,96 |
2031 | 72,63 | Est @ 8.82% | 32,43 |
2032 | 77,77 | Est @ 7.08% | 31,4 |
2033 | 82,33 | Est @ 5.86% | 30,05 |
Present value of next 10 years cash flows | BGN265,75 |
Terminal Value | FCF2033 × (1 + g) ÷ (Discount Rate – g) = BGN82,329 x (1 + 3.01%) ÷ (10.60% - 3.01% ) |
BGN1116,7 |
Present Value of Terminal Value | = Terminal Value ÷ (1 + r)10 BGN1117 ÷ (1 + 10.60%)10 |
BGN407,58 |
Total Equity Value | = Present value of next 10 years cash flows + Terminal Value = BGN266 + BGN408 |
BGN673,33 |
Equity Value per Share (BGN) |
= Total value / Shares Outstanding = BGN673 / 18 |
BGN37,3 |
Value per share (BGN) | From above. | BGN37.3 |
Current discount | Discount to share price of BGN72.2 = (BGN37.3 - BGN72.2) / BGN37.3 |
-93.6% |
Valuation Model | 2 Stage Free Cash Flow to Equity | |
Levered Free Cash Flow | Up to 1 Analyst Estimates on Average (S&P Global) | See below |
Discount Rate (Cost of Equity) | See below | 10.6% |
Perpetual Growth Rate | 5-Year Average of BG Long-Term Govt Bond Rate | 3.0% |
Risk-Free Rate | 5-Year Average of BG Long-Term Govt Bond Rate | 3.0% |
Equity Risk Premium | S&P Global | 6.9% |
Electronic Unlevered Beta | Simply Wall St/ S&P Global | 1.14 |
Re-levered Beta | = 0.33 + [(0.66 * Unlevered beta) * (1 + (1 - tax rate) (Debt/Market Equity))] = 0.33 + [(0.66 * 1.139) * (1 + (1 - 10.0%) (0.17%))] |
1.094 |
Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.094 |
Discount Rate/ Cost of Equity | = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 3.01% + (1.094 * 6.94%) |
10.60% |
2024 | 2 | Analyst x1 | 1,81 |
2025 | 22,6 | Analyst x1 | 18,47 |
2026 | 34,2 | Analyst x1 | 25,28 |
2027 | 43,51 | Est @ 27.22% | 29,07 |
2028 | 52,19 | Est @ 19.96% | 31,53 |
2029 | 59,96 | Est @ 14.87% | 32,75 |
2030 | 66,74 | Est @ 11.31% | 32,96 |
2031 | 72,63 | Est @ 8.82% | 32,43 |
2032 | 77,77 | Est @ 7.08% | 31,4 |
2033 | 82,33 | Est @ 5.86% | 30,05 |
Present value of next 10 years cash flows | BGN265,75 |
Terminal Value | FCF2033 × (1 + g) ÷ (Discount Rate – g) = BGN82,329 x (1 + 3.01%) ÷ (10.60% - 3.01% ) |
BGN1116,7 |
Present Value of Terminal Value | = Terminal Value ÷ (1 + r)10 BGN1117 ÷ (1 + 10.60%)10 |
BGN407,58 |
Total Equity Value | = Present value of next 10 years cash flows + Terminal Value = BGN266 + BGN408 |
BGN673,33 |
Equity Value per Share (BGN) |
= Total value / Shares Outstanding = BGN673 / 18 |
BGN37,3 |
Value per share (BGN) | From above. | BGN37.3 |
Current discount | Discount to share price of BGN72.2 = (BGN37.3 - BGN72.2) / BGN37.3 |
-93.6% |
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