Pumpkin Patch Limited (PPL)
Discount cash flow analysis
Sensitivity matrix
|
-1% |
Discount Rate % 0% |
1% |
||
|---|---|---|---|---|
| -1% | $1.38 | $1.36 | $1.34 | |
| Terminal Growth% | 0 | $1.39 | $1.36 | $1.34 |
| +1% | $1.39 | $1.37 | $1.35 |
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 $0.97 (undervalued by 11.49%) - 18 hours ago
- Valuecruncher created a new valuation of $0.97 (undervalued by 11.49%) - 2 days ago
- GordonGekko created a new valuation of $1.26 (undervalued by 1.61%) - over 2 years ago
- seamarkj created a new valuation of $1.21 (overvalued by 3.2%) - over 2 years ago
- SethWellbourne created a new valuation of $0.24 (overvalued by 76.7%) - over 3 years ago
- GordonGekko created a new valuation of $1.07 (undervalued by 2.88%) - over 3 years ago
- nzvikram created a new valuation of $0.00 (overvalued by 100.0%) - over 3 years ago
- NZXCrunchBlog created a new valuation of $1.11 (undervalued by 0.0%) - over 3 years ago
- KiwiEMH created a new valuation of $1.07 (undervalued by 1.9%) - over 3 years ago
- KiwiEMH created a new valuation of $1.36 (undervalued by 4.62%) - over 3 years ago
- KiwiEMH created a new valuation of $1.62 (undervalued by 0.62%) - over 3 years ago
- selliott created a new valuation of $2.01 (undervalued by 28.85%) - over 4 years ago
- KiwiEMH created a new valuation of $1.73 (overvalued by 4.95%) - over 4 years ago
- KiwiEMH created a new valuation of $1.85 (undervalued by 1.65%) - over 4 years ago
- GordonGekko created a new valuation of $1.60 (overvalued by 12.09%) - over 4 years ago
Comments
The boring details
| All amounts in millions | Figures |
| Enterprise Value: | 226 |
| Net Debt (Long-term borrowings less cash): | 81 |
| Equity Value: | 216 |
| Number of Shares Outstanding: | 166,000,000 |
| Calculated value per share: | $1.36 |
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.