Auckland International Airport Limited (AIA)
Discount cash flow analysis
Sensitivity matrix
-1% |
Discount Rate % 0% |
1% |
||
---|---|---|---|---|
-1% | $1.72 | $1.67 | $1.63 | |
Terminal Growth% | 0 | $1.74 | $1.69 | $1.65 |
+1% | $1.77 | $1.72 | $1.67 |
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 $1.44 (overvalued by 80.11%) - 11 months ago
- sambling created a new valuation of $1.77 (overvalued by 7.81%) - over 7 years ago
- sambling created a new valuation of $1.95 (undervalued by 2.63%) - over 7 years ago
- marieyvonne created a new valuation of $2.16 (undervalued by 16.76%) - almost 8 years ago
- GordonGekko created a new valuation of $1.60 (undervalued by 0.63%) - 8 years ago
- gordonsk created a new valuation of $1.70 (overvalued by 1.73%) - over 8 years ago
- gordonsk created a new valuation of $1.70 (overvalued by 1.73%) - over 8 years ago
- GordonGekko created a new valuation of $1.70 (undervalued by 1.19%) - over 8 years ago
- GordonGekko created a new valuation of $1.69 (undervalued by 0.0%) - over 8 years ago
- KiwiEMH created a new valuation of $1.69 (overvalued by 5.59%) - almost 9 years ago
- KiwiEMH created a new valuation of $2.16 (undervalued by 6.93%) - almost 9 years ago
- Sam created a new valuation of $1.90 (overvalued by 12.44%) - over 9 years ago
- jeremy created a new valuation of $1.82 (overvalued by 16.89%) - over 9 years ago
Comments
The boring details
All amounts in millions | Figures |
Enterprise Value: | 9,913 |
Net Debt (Long-term borrowings less cash): | 1,046 |
Equity Value: | 2,069 |
Number of Shares Outstanding: | 1,224,000,000 |
Calculated value per share: | $1.69 |
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.