Autodesk, Inc. (ADSK)
Discount cash flow analysis
Sensitivity matrix
|
-1% |
Discount Rate % 0% |
1% |
||
|---|---|---|---|---|
| -1% | $19.86 | $19.69 | $19.52 | |
| Terminal Growth% | 0 | $19.88 | $19.71 | $19.54 |
| +1% | $19.90 | $19.73 | $19.56 |
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 $26.04 (overvalued by 13.95%) - 2 hours ago
- GordonGekko created a new valuation of $15.16 (undervalued by 28.69%) - over 3 years ago
- GordonGekko created a new valuation of $19.71 (undervalued by 7.06%) - over 3 years ago
Comments
The boring details
| All amounts in millions | Figures |
| Enterprise Value: | 5,898 |
| Net Debt (Long-term borrowings less cash): | -949 |
| Equity Value: | 4,165 |
| Number of Shares Outstanding: | 226,000,000 |
| Calculated value per share: | $19.71 |
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.