Newalta Income Fund (NAL.U)

Discount cash flow analysis

Sell Overvalued by 77.1%

5% margin of safety What's this?

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How does this work?

This is an interactive analyst report for Newalta Income Fund, based on a discounted cash flow valuation approach.

You can modify the assumptions and the valuation will be updated automatically. You can also save and share your valuation.

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Values in $ millions
2008 2009 2010 2011 2012 2013 2014 2015
 
                 
               
 

What will the revenues be in the future?

Growth beyond year three is driven by the terminal growth rate.

Sensitivity matrix

   
-1%
Discount Rate %
0%

1%
  -1% $3.20 $3.00 $2.80
Terminal Growth% 0 $3.29 $3.09 $2.88
  +1% $3.39 $3.18 $2.97

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

  • Valuecruncher created a new valuation of $3.64 (overvalued by 73.02%) - over 5 years ago
  • baselsina created a new valuation of $29.12 (undervalued by 208.8%) - over 7 years ago
  • baselsina created a new valuation of $18.37 (undervalued by 94.8%) - over 7 years ago
  • baselsina created a new valuation of $15.68 (undervalued by 66.28%) - over 7 years ago
  • baselsina created a new valuation of $17.37 (undervalued by 84.2%) - over 7 years ago
  • baselsina created a new valuation of $11.28 (undervalued by 19.62%) - over 7 years ago
  • baselsina created a new valuation of $15.93 (undervalued by 68.93%) - over 7 years ago
  • baselsina created a new valuation of $10.17 (undervalued by 7.85%) - over 7 years ago
  • baselsina created a new valuation of $11.28 (undervalued by 19.62%) - over 7 years ago
  • baselsina created a new valuation of $8.38 (overvalued by 11.13%) - over 7 years ago
  • baselsina created a new valuation of $4.43 (overvalued by 53.02%) - over 7 years ago
  • baselsina created a new valuation of $21.13 (undervalued by 124.07%) - over 7 years ago
  • baselsina created a new valuation of $3.61 (overvalued by 61.72%) - over 7 years ago
  • baselsina created a new valuation of $35.44 (undervalued by 275.82%) - over 7 years ago
  • baselsina created a new valuation of $9.13 (overvalued by 3.18%) - over 7 years ago
  • baselsina created a new valuation of $5.90 (overvalued by 37.43%) - over 7 years ago
  • baselsina created a new valuation of $0.00 (overvalued by 100.0%) - over 7 years ago
  • baselsina created a new valuation of $5.92 (overvalued by 37.22%) - over 7 years ago
  • baselsina created a new valuation of $5.88 (overvalued by 37.65%) - over 7 years ago
  • baselsina created a new valuation of $44.90 (undervalued by 376.14%) - over 7 years ago
  • baselsina created a new valuation of $0.00 (overvalued by 100.0%) - over 7 years ago
  • baselsina created a new valuation of $18.40 (undervalued by 95.12%) - over 7 years ago
  • GordonGekko created a new valuation of $3.09 (undervalued by 17.49%) - over 8 years ago
  • GordonGekko created a new valuation of $4.74 (undervalued by 11.53%) - over 8 years ago

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The boring details

All amounts in millions Figures
Enterprise Value: 885
Net Debt (Long-term borrowings less cash): 315
Equity Value: 111
Number of Shares Outstanding: 42,000,000
Calculated value per share: $3.09

Enterprise Value is the present value of the post-tax cash flows for a business into the future.


Calcuation of EV

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.


Perpetuity

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.


CAPM model

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.