Fletcher Building Limited (FBU)
Discount cash flow analysis
Sensitivity matrix
|
-1% |
Discount Rate % 0% |
1% |
||
|---|---|---|---|---|
| -1% | $0.10 | $0.07 | $0.05 | |
| Terminal Growth% | 0 | $0.10 | $0.08 | $0.05 |
| +1% | $0.11 | $0.08 | $0.06 |
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 $0.08 (overvalued by 99.26%) - over 4 years ago
- sambling created a new valuation of $7.73 (overvalued by 0.64%) - 11 years ago
- GordonGekko created a new valuation of $5.85 (overvalued by 10.41%) - over 11 years ago
- Neil created a new valuation of $3.66 (overvalued by 39.0%) - almost 12 years ago
- gordonsk created a new valuation of $5.64 (overvalued by 7.84%) - almost 12 years ago
- GordonGekko created a new valuation of $5.63 (undervalued by 6.03%) - almost 12 years ago
- nzvikram created a new valuation of $1.97 (overvalued by 62.48%) - almost 12 years ago
- KiwiEMH created a new valuation of $5.88 (undervalued by 2.08%) - over 12 years ago
- NZXCrunchBlog created a new valuation of $5.98 (overvalued by 7.29%) - over 12 years ago
- KiwiEMH created a new valuation of $5.80 (overvalued by 3.01%) - over 12 years ago
- KiwiEMH created a new valuation of $7.55 (undervalued by 8.01%) - over 12 years ago
- KiwiEMH created a new valuation of $6.29 (undervalued by 0.32%) - almost 13 years ago
- sahjid created a new valuation of $8.22 (undervalued by 22.32%) - almost 13 years ago
- KiwiEMH created a new valuation of $7.86 (overvalued by 0.38%) - almost 13 years ago
- tiger created a new valuation of $8.62 (overvalued by 1.71%) - almost 13 years ago
Comments
The boring details
| All amounts in millions | Figures |
| Enterprise Value: | 8,801 |
| Net Debt (Long-term borrowings less cash): | 1,396 |
| Equity Value: | 7,451 |
| Number of Shares Outstanding: | 688,000,000 |
| Calculated value per share: | $0.08 |
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.