The Warehouse Group Limited (WHS)
Discount cash flow analysis
Sensitivity matrix
|
-1% |
Discount Rate % 0% |
1% |
||
|---|---|---|---|---|
| -1% | $3.73 | $3.67 | $3.62 | |
| Terminal Growth% | 0 | $3.75 | $3.69 | $3.63 |
| +1% | $3.77 | $3.71 | $3.65 |
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 $2.84 (undervalued by 9.65%) - 1 day ago
- GordonGekko created a new valuation of $2.84 (undervalued by 6.37%) - 6 days ago
- baconboy created a new valuation of $3.41 (overvalued by 10.26%) - over 2 years ago
- sambling created a new valuation of $5.00 (undervalued by 24.38%) - over 2 years ago
- sambling created a new valuation of $3.79 (overvalued by 5.25%) - over 2 years ago
- GordonGekko created a new valuation of $4.17 (undervalued by 11.5%) - over 2 years ago
- gordonsk created a new valuation of $3.47 (overvalued by 1.14%) - over 3 years ago
- GordonGekko created a new valuation of $3.47 (undervalued by 0.58%) - over 3 years ago
- nzvikram created a new valuation of $3.15 (overvalued by 4.83%) - over 3 years ago
- KiwiEMH created a new valuation of $3.43 (undervalued by 0.88%) - over 3 years ago
- KiwiEMH created a new valuation of $3.58 (undervalued by 18.54%) - over 3 years ago
- KiwiEMH created a new valuation of $3.69 (undervalued by 12.5%) - over 3 years ago
- KiwiEMH created a new valuation of $3.91 (overvalued by 1.01%) - over 4 years ago
- TheCrunchBlog created a new valuation of $4.13 (undervalued by 0.73%) - over 4 years ago
- GordonGekko created a new valuation of $4.61 (undervalued by 2.22%) - over 4 years ago
- GordonGekko created a new valuation of $5.65 (overvalued by 0.88%) - over 4 years ago
Comments
The boring details
| All amounts in millions | Figures |
| Enterprise Value: | 934 |
| Net Debt (Long-term borrowings less cash): | 134 |
| Equity Value: | 1,012 |
| Number of Shares Outstanding: | 308,000,000 |
| Calculated value per share: | $3.69 |
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.