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    Task 4

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    Meghana Buchi
    The document presents financial projections for a company from 2019-2024 including EBIT, tax on EBIT, debt free earnings, depreciation and amortization, capital expenditures, free cash flows, and a terminal value. It also provides assumptions for the cost of debt, cost of equity, debt levels, equity levels, WACC, long term GDP growth rate, number of shares, current market price, and an intrinsic value calculation comparing to the current market price to determine upside. Based on the projections and assumptions, the intrinsic value of the company is calculated to be Rs. 4,648.3 per share, representing a 10.67% upside from the current market price of Rs. 4,200 per share.

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    Task 4

    Uploaded by

    Meghana Buchi
    8 views3 pages
    The document presents financial projections for a company from 2019-2024 including EBIT, tax on EBIT, debt free earnings, depreciation and amortization, capital expenditures, free cash flows, and a terminal value. It also provides assumptions for the cost of debt, cost of equity, debt levels, equity levels, WACC, long term GDP growth rate, number of shares, current market price, and an intrinsic value calculation comparing to the current market price to determine upside. Based on the projections and assumptions, the intrinsic value of the company is calculated to be Rs. 4,648.3 per share, representing a 10.67% upside from the current market price of Rs. 4,200 per share.

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    The document presents financial projections for a company from 2019-2024 including EBIT, tax on EBIT, debt free earnings, depreciation and amortization, capital expenditures, free cash flows, and a terminal value. It also provides assumptions for the cost of debt, cost of equity, debt levels, equity levels, WACC, long term GDP growth rate, number of shares, current market price, and an intrinsic value calculation comparing to the current market price to determine upside. Based on the projections and assumptions, the intrinsic value of the company is calculated to be Rs. 4,648.3 per share, representing a 10.67% upside from the current market price of Rs. 4,200 per share.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    8 views3 pages

    Task 4

    Uploaded by

    Meghana Buchi
    The document presents financial projections for a company from 2019-2024 including EBIT, tax on EBIT, debt free earnings, depreciation and amortization, capital expenditures, free cash flows, and a terminal value. It also provides assumptions for the cost of debt, cost of equity, debt levels, equity levels, WACC, long term GDP growth rate, number of shares, current market price, and an intrinsic value calculation comparing to the current market price to determine upside. Based on the projections and assumptions, the intrinsic value of the company is calculated to be Rs. 4,648.3 per share, representing a 10.67% upside from the current market price of Rs. 4,200 per share.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 3

    2019 F 2020 F 2021 F 2022 F 2023 F 2024 F

    EBIT 3,393 3,198 3,403 3,725 4,215 4,994


    Less: Tax on EBIT 679 640 681 745 843 999
    Debt free earning 2,714 2,558 2,722 2,980 3,372 3,995

    Add: Dep & Ammo 674 712 840 982 1095 1272
    Less: Capex -850 -2000 -1550 -2150 -2400 -1900
    Add/Less: Change in WC
    FCFF 2538 1270 2012 1812 2067 3367
    Terminal value 36,771 61,535
    FCFF after TV 2538 1270 38783 1812 2067 64902

    Cost of Debt 8%
    Cost of Debt after tax 6.4% Tax rate 20%
    Cost of Equity 12% CAPM= Rf+B(Rm-Rf)

    Rf 7.80% 10 year govt bond


    B 1.013 B= Covar(Rm,Re)/Var Rm
    Rm 12% CAGR of market return of 8 years

    Debt 2500
    Equity 42,000

    Wd
    We

    CMP 4000
    Shares outstanding 10

    G (India's long term GDP growth) 6%

    Cash
    FCC*(1+g)/(WACC-g)

    WACC 11.80% =Wd*Cost of Debt (1-Tax rate) + We* Cost of Equity

    EV ₹ 66,618.62
    Debt As on closing 2019
    Cash 7393.666 As on closing 2019
    Eq 71512 Eq=EV-Debt+Cash
    Intrinsic value 7151
    Current Market Price 4000
    Upside 3151
    Upside % 79%
    2020 2021 2022 2023 2024
    PBT 3073.906 3409.711 3716.212 4188.835 4994.884
    Add Intere 200
    Sub Tax -654.781 -721 -783 -877 -1038
    Add Dep,A 712 840 981 1094 1272
    Sub Change -56.3438 -131.299 -109.634 -139.393 -233.076
    Sub Capex -2000 -1550 -2150 -2400 -1900
    FCFF 1275 2046 1855 2066 3295
    TV 60218.97
    FCFF after 1275 2046 1855 2066 63513.97

    Cost of De 8%
    Tax Rate 20% WACC 11.80%
    Cost of Deb 6.4% G 6.00%
    Debt 2500
    Cost of Equ 12.00%
    B 1.013 EV ₹ 41,790.22
    Rm 12.00% To be Mark ₹ 46,683.89
    Rf 7.8 Market Cap
    Equity 42000
    CMP 4200
    N of Share 10 Intrinsic V 4648.3

    Cash 7393.666 Upside 448.3


    Upside % 10.67%

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