Mainfreight Limited (MFT)
Discount cash flow analysis
Sensitivity matrix
-1% |
Discount Rate % 0% |
1% |
||
---|---|---|---|---|
-1% | $7.66 | $7.55 | $7.45 | |
Terminal Growth% | 0 | $7.69 | $7.58 | $7.47 |
+1% | $7.71 | $7.60 | $7.50 |
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 $6.24 (overvalued by 64.63%) - over 4 years ago
- GordonGekko created a new valuation of $4.07 (overvalued by 8.54%) - over 11 years ago
- Lespe959 created a new valuation of $3.77 (overvalued by 21.46%) - over 11 years ago
- gordonsk created a new valuation of $3.75 (overvalued by 7.18%) - almost 12 years ago
- GordonGekko created a new valuation of $3.97 (undervalued by 12.78%) - almost 12 years ago
- KiwiEMH created a new valuation of $4.61 (overvalued by 2.95%) - 12 years ago
- GordonGekko created a new valuation of $6.40 (overvalued by 5.88%) - over 12 years ago
- KiwiEMH created a new valuation of $7.58 (undervalued by 2.43%) - over 12 years ago
Comments
The boring details
All amounts in millions | Figures |
Enterprise Value: | 1,768 |
Net Debt (Long-term borrowings less cash): | 64 |
Equity Value: | 714 |
Number of Shares Outstanding: | 96,000,000 |
Calculated value per share: | $7.58 |
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.