Ebos Group Limited (EBO)
Discount cash flow analysis
Sensitivity matrix
-1% |
Discount Rate % 0% |
1% |
||
---|---|---|---|---|
-1% | $4.92 | $4.82 | $4.73 | |
Terminal Growth% | 0 | $4.95 | $4.85 | $4.76 |
+1% | $4.98 | $4.88 | $4.79 |
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 $14.73 (overvalued by 22.06%) - over 4 years ago
- GordonGekko created a new valuation of $5.14 (overvalued by 3.02%) - over 11 years ago
- gordonsk created a new valuation of $4.72 (overvalued by 1.67%) - almost 12 years ago
- GordonGekko created a new valuation of $4.72 (undervalued by 2.61%) - almost 12 years ago
- KiwiEMH created a new valuation of $4.28 (overvalued by 1.61%) - over 12 years ago
- KiwiEMH created a new valuation of $4.85 (undervalued by 1.04%) - over 12 years ago
Comments
The boring details
All amounts in millions | Figures |
Enterprise Value: | 879 |
Net Debt (Long-term borrowings less cash): | 8 |
Equity Value: | 221 |
Number of Shares Outstanding: | 46,000,000 |
Calculated value per share: | $4.85 |
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.
WACC at 11.5% per PWC Cost of Capital Report (report uses 11.4%). LTG at NZ long-run growth of 3.5%. Tax at 30%. EBITDA margins dropping to 3% in 2010.