Hallenstein Glassons Holdings Limited (HLG)
Discount cash flow analysis
Sensitivity matrix
-1% |
Discount Rate % 0% |
1% |
||
---|---|---|---|---|
-1% | $2.45 | $2.43 | $2.40 | |
Terminal Growth% | 0 | $2.45 | $2.43 | $2.41 |
+1% | $2.45 | $2.43 | $2.41 |
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 $3.02 (overvalued by 0.98%) - over 4 years ago
- sambling created a new valuation of $3.75 (undervalued by 22.95%) - over 11 years ago
- GordonGekko created a new valuation of $2.43 (overvalued by 2.8%) - over 11 years ago
- seamarkj created a new valuation of $2.56 (overvalued by 3.4%) - over 11 years ago
- seamarkj created a new valuation of $2.56 (overvalued by 3.4%) - over 11 years ago
- seamarkj created a new valuation of $2.56 (overvalued by 3.4%) - over 11 years ago
- GordonGekko created a new valuation of $2.49 (undervalued by 27.69%) - almost 12 years ago
- nzvikram created a new valuation of $2.28 (undervalued by 5.56%) - almost 12 years ago
- KiwiEMH created a new valuation of $2.78 (undervalued by 11.2%) - over 12 years ago
- tiger created a new valuation of $3.68 (undervalued by 2.79%) - almost 13 years ago
- GordonGekko created a new valuation of $3.72 (undervalued by 3.91%) - almost 13 years ago
Comments
The boring details
All amounts in millions | Figures |
Enterprise Value: | 161 |
Net Debt (Long-term borrowings less cash): | -18 |
Equity Value: | 148 |
Number of Shares Outstanding: | 59,000,000 |
Calculated value per share: | $2.43 |
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.