Contact Energy Limited (CEN)
Discount cash flow analysis
Sensitivity matrix
|
-1% |
Discount Rate % 0% |
1% |
||
|---|---|---|---|---|
| -1% | $7.83 | $7.66 | $7.51 | |
| Terminal Growth% | 0 | $7.90 | $7.73 | $7.58 |
| +1% | $7.97 | $7.80 | $7.64 |
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 $2.01 (overvalued by 59.06%) - over 4 years ago
- sambling created a new valuation of $0.00 (overvalued by 100.0%) - over 11 years ago
- sambling created a new valuation of $0.00 (overvalued by 100.0%) - over 11 years ago
- sambling created a new valuation of $0.00 (overvalued by 100.0%) - over 11 years ago
- sambling created a new valuation of $0.00 (overvalued by 100.0%) - over 11 years ago
- sambling created a new valuation of $6.47 (undervalued by 13.31%) - over 11 years ago
- DarrylLundy created a new valuation of $6.54 (overvalued by 1.06%) - over 11 years ago
- DarrylLundy created a new valuation of $0.00 (overvalued by 100.0%) - over 11 years ago
- DarrylLundy created a new valuation of $5.59 (overvalued by 15.43%) - over 11 years ago
- GordonGekko created a new valuation of $6.35 (undervalued by 0.95%) - over 11 years ago
- GordonGekko created a new valuation of $5.55 (overvalued by 4.8%) - over 11 years ago
- GordonGekko created a new valuation of $5.55 (overvalued by 4.8%) - over 11 years ago
- GordonGekko created a new valuation of $5.55 (overvalued by 4.8%) - over 11 years ago
- GordonGekko created a new valuation of $5.55 (overvalued by 4.8%) - over 11 years ago
- GordonGekko created a new valuation of $5.55 (overvalued by 4.8%) - over 11 years ago
- GordonGekko created a new valuation of $5.55 (overvalued by 4.8%) - over 11 years ago
- GordonGekko created a new valuation of $6.04 (undervalued by 2.55%) - over 11 years ago
- GordonGekko created a new valuation of $5.95 (undervalued by 6.25%) - almost 12 years ago
- KiwiEMH created a new valuation of $6.44 (overvalued by 8.78%) - 12 years ago
- Bert created a new valuation of $12.36 (undervalued by 30.38%) - over 12 years ago
- Sam created a new valuation of $11.07 (undervalued by 18.02%) - over 12 years ago
- tiger created a new valuation of $9.45 (undervalued by 1.61%) - over 12 years ago
- GordonGekko created a new valuation of $7.73 (overvalued by 16.88%) - over 12 years ago
Comments
The boring details
| All amounts in millions | Figures |
| Enterprise Value: | 3,363 |
| Net Debt (Long-term borrowings less cash): | 532 |
| Equity Value: | 5,363 |
| Number of Shares Outstanding: | 576,000,000 |
| Calculated value per share: | $7.73 |
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.