Fisher & Paykel Healthcare Corp. Limited (FPH)

Discount cash flow analysis

Sell Overvalued by 70.9%

5% margin of safety What's this?

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How does this work?

This is an interactive analyst report for Fisher & Paykel Healthcare Corp. Limited, 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
2009 2010 2011 2012 2013 2014 2015 2016
 
                 
               
 

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% $2.93 $2.88 $2.82
Terminal Growth% 0 $2.96 $2.90 $2.85
  +1% $2.98 $2.93 $2.87

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 $3.38 (overvalued by 66.06%) - 9 months ago
  • sambling created a new valuation of $3.71 (undervalued by 11.08%) - over 7 years ago
  • sambling created a new valuation of $3.39 (undervalued by 5.94%) - over 7 years ago
  • sambling created a new valuation of $3.39 (undervalued by 5.94%) - over 7 years ago
  • GordonGekko created a new valuation of $3.04 (undervalued by 5.56%) - 8 years ago
  • Lespe959 created a new valuation of $2.92 (overvalued by 8.18%) - 8 years ago
  • Craigp created a new valuation of $2.91 (overvalued by 0.68%) - 8 years ago
  • GordonGekko created a new valuation of $2.90 (overvalued by 8.23%) - 8 years ago
  • GordonGekko created a new valuation of $3.78 (undervalued by 12.17%) - over 8 years ago
  • KiwiEMH created a new valuation of $3.02 (overvalued by 0.98%) - almost 9 years ago
  • GordonGekko created a new valuation of $2.65 (overvalued by 3.64%) - 9 years ago

Comments

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The boring details

All amounts in millions Figures
Enterprise Value: 5,153
Net Debt (Long-term borrowings less cash): 79
Equity Value: 1,609
Number of Shares Outstanding: 509,000,000
Calculated value per share: $2.90

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.