Академический Документы
Профессиональный Документы
Культура Документы
Present Value
1 ($893.81) ($792.33)
2 ($832.48) ($654.18)
3 ($953.76) ($664.40)
4 ($1,036.78) ($640.23)
5 ($999.05) ($546.89)
6 ($728.08) ($355.43)
7 ($250.97) ($109.89)
8 ($344.40) ($136.02)
9 ($127.69) ($45.73)
10 $318.13 $60,899.33 $19,986.47
$16,041.34
Valuing Options or Warrants when there is dilution
Enter the current stock price = $84.00
Enter the strike price on the option = 13.38
Enter the expiration of the option = 8.4
Enter the standard deviation in stock prices = 50.00% (volatility)
Enter the annualized dividend yield on stock = 0.00%
Enter the treasury bond rate = 6.50%
Enter the number of warrants (options) outstanding = 38
Enter the number of shares outstanding = 340.79
VALUING WARRANTS WHEN THERE IS DILUTION
Stock Price= 84 # Warrants issued= 38
Strike Price= 13.38 # Shares outstanding= 341
Adjusted S (DO NOT ENTER)= 83.21 T.Bond rate= 6.50%
Adjusted K (DO NOT ENTER)= 13.38 Variance= 0.2500
Expiration (in years) = 8.4 Annualized dividend yield= 0.00%
Div. Adj. interest rate= 6.50%
d1 = 2.36
N (d1) = 0.99
d2 = 0.91
N (d2) = 0.82
Value of the call = $76.10
Number of Options = 38
Value of Options = $2,891.94
Value and Revenue Growth
100
95
90
85
80
75
70
65
60
55
50
45
40
35
30
25
20
15
10
0
41% 45% 50%
Value per Share and EBITDA Margins
70
67.5
65
62.5
60
57.5
55
52.5
50
47.5
45
42.5
40
37.5
Value per Share
35
32.5
30
27.5
25
22.5
20
17.5
15
12.5
10
7.5
5
2.5
0
6% 8% 10% 12% 14%
per Share
Revenue Growth
Value per Share
41% 37.97
45% 61.43
50% 96.59
A General FCFF Valuation Model
An nstage Model
This model is designed to value a firm, with changing margins, revenue growth,
and other parameters.
Assumptions
1. The firm is expected to grow at a higher growth rate in the first period.
2. The growth rate will drop at the end of the first period to the stable growth rate.
3. The free cashflow to equity is the correct measure of expected cashflows to stockholders.
The user has to define the following inputs:
1. Length of high growth period
2. Expected growth rate in earnings during the high growth period.
3. Capital Spending, Depreciation and Working Capital needs during the high growth period.
4. Expected growth rate in earnings during the stable growth period.
5. Inputs for the cost of capital. (Cost of equity, Cost of debt, Weights on debt and equity)
Page
General FCFF Discount Model
Inputs to the model
Weights on Debt and Equity
If no, do you want to use the book value debt ratio ? (Yes or No)
If no, enter the debt to capital ratio to be used = (in percent)
Enter length of extraordinary growth period = 10 (in years)
Costs of Components
Do you want to enter cost of equity directly? No (Yes or No)
If yes, enter the cost of equity = 15.35% (in percent)
If no, enter the inputs to the cost of equity
Beta of the stock = 1.6
Page
General FCFF Discount Model
Earnings Inputs
Please enter yearspecific inputs for each of the following variables:
Page
General FCFF Discount Model
Capital Spending and Depreciation in Stable growth period
Is capital spending to be offset by depreciation in stable period? No (Yes or No)
If no, enter capital expenditures as % of depreciation in steady state: 110% (in percent: > 100%)
Page
General FCFF Discount Model
Output from the program
Cost of Equity = 12.90%
Equity/(Debt+Equity ) = 98.80%
Aftertax Cost of debt = 5.20%
Debt/(Debt +Equity) = 1.20%
Cost of Capital = 12.81%
1 2 3 4 5
Page
General FCFF Discount Model
Cost of Capital Computation
Tax Rate 0% 0% 0% 0% 0%
Beta 1.60 1.60 1.60 1.60 1.60
Cost of Equity 12.90% 12.90% 12.90% 12.90% 12.90%
Cost of Debt 5.20% 5.20% 5.20% 5.20% 5.20%
Debt Ratio 1.20% 1.20% 1.20% 1.20% 1.20%
Cost of Capital 12.81% 12.81% 12.81% 12.81% 12.81%
Cum. WACC 1.12807 1.27255 1.43553 1.61938 1.82678
Growth Rate in Stable Phase = 6.00%
FCFF in Stable Phase = $2,256.32
Cost of Equity in Stable Phase = 10.50%
Equity/ (Equity + Debt) = 85.00%
AT Cost of Debt in Stable Phase = 5.20%
Debt/ (Equity + Debt) = 15.00%
Cost of Capital in Stable Phase = 9.71%
Value at the end of growth phase = $60,899.33
Page
General FCFF Discount Model
Present Value of FCFF in high growth phase = ($3,841.26)
Present Value of Terminal Value of Firm = $19,882.60
Value of the firm = $16,041.34
Market Value of Debt = $349.00
Market Value of Equity = $15,692.34
Value of Options Outstanding (See option worksheet) = $2,891.94
Value of Equity in Common Stock = $12,800.41
Value of Equity per Share = $37.56
Page
General FCFF Discount Model
el
ins, revenue growth,
Page
General FCFF Discount Model
Page
General FCFF Discount Model
Page
General FCFF Discount Model
cent: > 100%)
Page
General FCFF Discount Model
6 7 8 9 10 Terminal Year
Page
General FCFF Discount Model
Page
General FCFF Discount Model
Page