Methven Limited (MVN)

Discount cash flow analysis

Buy Undervalued by 49.3%

5% margin of safety What's this?


How does this work?

This is an interactive analyst report for Methven 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.

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

Discount Rate %

  -1% $2.06 $2.03 $2.01
Terminal Growth% 0 $2.06 $2.03 $2.01
  +1% $2.06 $2.04 $2.01

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

  • DarrylLundy created a new valuation of $0.70 (overvalued by 41.18%) - almost 9 years ago
  • fazza created a new valuation of $1.61 (overvalued by 8.0%) - over 10 years ago
  • GordonGekko created a new valuation of $1.65 (undervalued by 17.86%) - almost 12 years ago
  • GordonGekko created a new valuation of $1.67 (undervalued by 28.46%) - almost 12 years ago
  • GordonGekko created a new valuation of $1.27 (undervalued by 27.0%) - 12 years ago
  • GordonGekko created a new valuation of $2.03 (undervalued by 35.33%) - 13 years ago
  • KiwiEMH created a new valuation of $1.44 (overvalued by 1.37%) - 13 years ago


Quick Analysis

The quick analysis of MVN makes it look cheap at the moment. What am I missing?

By GordonGekko, almost 13 years ago

Agressive revenue growth

Your revenue projections represent annualised growth of 30% over the next three years. Do they have the capacity to facilitate this or are they going to build/buy plant? I don't think your capital expenditure projections are consistent with your revenue growth :).

By Sam, almost 13 years ago

The boring details

All amounts in millions Figures
Enterprise Value: 75
Net Debt (Long-term borrowings less cash): 2
Equity Value: 80
Number of Shares Outstanding: 53,000,000
Calculated value per share: $2.03

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

Calcuation of EV


  • 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.



  • 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


  • 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.