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Calculation of PV of FCFF Mar-24A Mar-25F Mar-26F Mar-27F Feb-28F Feb-29F

The document presents a financial analysis calculating the Present Value (PV) of Free Cash Flow to Firm (FCFF) from March 2024 to February 2029, showing negative cash flows and a declining enterprise value. It includes projections for EBIT, tax rates, reinvestment rates, and terminal value, ultimately leading to a calculated equity value per share of approximately -₹ 9842.07. The analysis indicates a significant discount on the share price, suggesting a -1113% premium.

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11 views1 page

Calculation of PV of FCFF Mar-24A Mar-25F Mar-26F Mar-27F Feb-28F Feb-29F

The document presents a financial analysis calculating the Present Value (PV) of Free Cash Flow to Firm (FCFF) from March 2024 to February 2029, showing negative cash flows and a declining enterprise value. It includes projections for EBIT, tax rates, reinvestment rates, and terminal value, ultimately leading to a calculated equity value per share of approximately -₹ 9842.07. The analysis indicates a significant discount on the share price, suggesting a -1113% premium.

Uploaded by

vishalforirl
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Calculation of PV of FCFF Mar-24A Mar-25F Mar-26F Mar-27F Feb-28F Feb-29F

EBIT ₹ 5,475.00 ₹ 6,133.64 ₹ 6,871.52 ₹ 7,698.16 ₹ 8,624.25 ₹ 9,661.75


Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
EBIT (1-Tax) ₹ 4,106.25 ₹ 4,600.23 ₹ 5,153.64 ₹ 5,773.62 ₹ 6,468.19 ₹ 7,246.31
Reinvestment Rate 464.52% 488.90% 513.29% 537.68% 562.06% 562.06%
Free Cash Flow To Firm (FCFF) ₹ (14,967.98) ₹ (17,890.48) ₹ (21,299.50) ₹ (25,269.82) ₹ (29,887.16) ₹ (33,482.58)
Mid Year Convention 0.5 1.5 2.5 3.5 4.5
Discounting Factor 0.957528919 0.877921525 0.804932561 0.73801178 0.676654683
PV of FCFF -17130.64822 -18699.29007 -20340.50405 -22057.07513 -22656.14715

Expected Growth 12.03%


Terminal Growth 6.50%
WACC 9.07%

Calculation of Terminal Value Sensitive Analysis


WACC
FCFF (n+1) ₹ (37,510.54) ############# 4.00% 5.00% 6.50% 7.50%
WACC 9.07% 7.00% -1351234.953 -1976410.597 -7602991.394 7401224.065
Terminal
Terminal Growth Rate 6.50% Growth 8.00% -1038647.131 -1351234.953 -2601586.241 -7602991.394
Rate 9.07% -840736.4979 -1022518.521 -1560437.698 -2490089.948
Terminal Value -1460854.723 10.00% -726059.3087 -851094.4376 -1172613.34 -1601305.211

Calculation of Enterprise Value

PV Of FCFF ₹ (1,00,883.66)
Present Terminal Value ₹ (14,60,854.72)
Value Of Operating Asset ₹ (15,61,738.39)

Add: Cash ₹ 7,218.00


Less: Debt ₹ 4,463.00
Value Of Equity ₹ (15,58,983.39)
No Of Shares 158.4

Equity Value Per Share -9842.066839

Share Price ₹ 972.00


Discount/Premium -1113%

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