The document presents a 2-stage discounted cash flow (DCF) model to value a company. It provides inputs like the initial cash flow, growth rates, discount rate, terminal growth rate, shares outstanding, and net debt level. It then calculates the present value of future cash flows for the first 10 years using the given inputs. It sums this with the terminal value to get the total present value of cash flows, which is then divided by shares outstanding to arrive at the DCF value per share.
The document presents a 2-stage discounted cash flow (DCF) model to value a company. It provides inputs like the initial cash flow, growth rates, discount rate, terminal growth rate, shares outstanding, and net debt level. It then calculates the present value of future cash flows for the first 10 years using the given inputs. It sums this with the terminal value to get the total present value of cash flows, which is then divided by shares outstanding to arrive at the DCF value per share.
The document presents a 2-stage discounted cash flow (DCF) model to value a company. It provides inputs like the initial cash flow, growth rates, discount rate, terminal growth rate, shares outstanding, and net debt level. It then calculates the present value of future cash flows for the first 10 years using the given inputs. It sums this with the terminal value to get the total present value of cash flows, which is then divided by shares outstanding to arrive at the DCF value per share.
The document presents a 2-stage discounted cash flow (DCF) model to value a company. It provides inputs like the initial cash flow, growth rates, discount rate, terminal growth rate, shares outstanding, and net debt level. It then calculates the present value of future cash flows for the first 10 years using the given inputs. It sums this with the terminal value to get the total present value of cash flows, which is then divided by shares outstanding to arrive at the DCF value per share.
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XXX: 2-Stage DCF
Figures in Rs Billion | Enter values only in red cells
Initial Cash Flow
1.994
Years FCF Growth Rate Discount Rate Terminal Growth Rate
(Average of last 3 years FCF)
25 20.0% 10% 1%
Shares Outstanding (billion)
Net Debt Level
Year 1 2 3 4 5 6 7 8 9 10
Colgate CRISIL Dabur HUL ITC Nestle Voltas
6-10 20.0%
0.33088 1.507
Present Value Calculations
FCF 2 3 3 4 5 6 7 9 10 12
Growth 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%
Initial Cash Flow
Shares Outstanding (billion)
2.98 2.03 7.65 29.64 51.52 12.08 1.99
0.272 0.071 1.756 2.163 8.016 0.096 0.331
st 3 years FCF)
Why DCF? The simply the present value of cash that inves business over its lifetim 3.16 Final Calculations Terminal Year PV of Year 1-10 Cash Flows Terminal Value Total PV of Cash Flows Number of Shares DCF Value / Share (Rs)
Present Value 2 2 3 3 3 3 4 4 4 5
Net Debt Level
DCF
FCF Growth Rate
0.650 0.351 2.106 12.040 20.954 16.268 1.507
959 1878.9522 288 785 319 6102 257
30% 26% 26% 24% 22% 22% 20%
12 33 53 87 0 257
DCF? The value of a business is y the present value of cash that investors can take out of the business over its lifetime.
