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    Deepak Nitrite: Inputs Share Price Calculation

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    Aryaman Juneja
    Deepak Nitrite's key financial figures are provided, including net profit, book value of equity, capital expenditures, and number of shares. Two methods for calculating the company's share price are shown, using the dividend distribution method and free cash flow to equity method. Under each method, two options for growth rates and retention ratios over time are provided, with the resulting estimated future equity value, present equity value, and calculated current share price.

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    Deepak Nitrite: Inputs Share Price Calculation

    Uploaded by

    Aryaman Juneja
    24 views4 pages
    Deepak Nitrite's key financial figures are provided, including net profit, book value of equity, capital expenditures, and number of shares. Two methods for calculating the company's share price are shown, using the dividend distribution method and free cash flow to equity method. Under each method, two options for growth rates and retention ratios over time are provided, with the resulting estimated future equity value, present equity value, and calculated current share price.

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    FCFE Deepak Nitrite

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    Deepak Nitrite's key financial figures are provided, including net profit, book value of equity, capital expenditures, and number of shares. Two methods for calculating the company's share price are shown, using the dividend distribution method and free cash flow to equity method. Under each method, two options for growth rates and retention ratios over time are provided, with the resulting estimated future equity value, present equity value, and calculated current share price.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    24 views4 pages

    Deepak Nitrite: Inputs Share Price Calculation

    Uploaded by

    Aryaman Juneja
    Deepak Nitrite's key financial figures are provided, including net profit, book value of equity, capital expenditures, and number of shares. Two methods for calculating the company's share price are shown, using the dividend distribution method and free cash flow to equity method. Under each method, two options for growth rates and retention ratios over time are provided, with the resulting estimated future equity value, present equity value, and calculated current share price.

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    Deepak Nitrite

    INPUTS Share Price Calculation


    Particular In crore Rs. b (0) 35.84%
    Dividend 61 EPS (0) 44.92647
    Net Profit 611 RoE (0) 38.87%
    Book Value of Equity 1,572 Div (0) 4.5
    Capital Expenditure 398 COE (0) 8.00%
    Depreciation 146 g (0) 13.93%
    Change in Working Capital 123 g (n) 5.50%
    Net Debt 156 RoE (n) 10.00%
    No. of Shares 14 b (n) 55.00%
    rf 6.00%
    rm 10.00%
    beta 0.5
    Cost of Equity 8.00%

    Dividend Distribution Method FCFE Method


    Return on Equity 38.87% Equity retention Ratio (ERR) 35.84%
    Retention Ratio (b) 0.8998363339 g (FCFE) 13.93%
    Growth g (Dividend) 34.97% FCFE 392
    61.2
    Share Price Calculation Option 1 g is going down and b is also going down for hg period
    b (0) 35.84%
    EPS (0) 44.93 Time Growth ERR FCFE
    RoE (0) 38.87% 0 13.93% 392
    Div (0) 4.5 1 12.25% 446.61
    COE (0) 8.00% 2 9.55% 501.30
    g (0) 13.93% 3 8.20% 549.16
    g (n) 5.50% 4 6.85% 594.18
    RoE (n) 10.00% 5 5.50% 0.55 634.87
    b (n) 55.00% 6 5.50% 0.55 669.79

    Estimated Value of Equity as of year 5 EVE (5)


    Present Value of Equity P(0)
    Price Per Share P(0)

    Option 2 g is going down and b is constant for hg period

    Time Growth b FCFE


    0 13.93% 392
    1 13.93% 446.61
    2 13.93% 508.83
    3 13.93% 579.72
    4 13.93% 660.48
    5 5.50% 0.55 752.49
    6 5.50% 0.55 793.88

    Estimated Value of Equity as of year 5 EVE (5)


    Present Value of Equity P(0)
    Price Per Share P(0)
    oing down for hg period

    PV

    81.20
    16.57
    3.30
    0.65
    0.13

    26791.63
    18233.93
    1,340.73

    stant for hg period

    PV

    81.20
    16.82
    3.48
    0.72
    0.15

    31755.118572
    21612.00012
    1,589.12

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