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    Biocon: Inputs Share Price Calculation

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    Aryaman Juneja
    This document contains inputs and calculations to estimate the share price of Indian Railway Finance Corporation. It uses the dividend discount model and constant growth model. The return on equity is currently 9.01% and expected to decline to 7.5% over time. The dividend payout ratio is expected to decrease from 83.3% currently to 67% in the long run. Calculating the present value of expected future dividends yields an estimated current share price of Rs. 24.86.

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    Biocon: Inputs Share Price Calculation

    Uploaded by

    Aryaman Juneja
    38 views5 pages
    This document contains inputs and calculations to estimate the share price of Indian Railway Finance Corporation. It uses the dividend discount model and constant growth model. The return on equity is currently 9.01% and expected to decline to 7.5% over time. The dividend payout ratio is expected to decrease from 83.3% currently to 67% in the long run. Calculating the present value of expected future dividends yields an estimated current share price of Rs. 24.86.

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    FCFE LT Tech

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    This document contains inputs and calculations to estimate the share price of Indian Railway Finance Corporation. It uses the dividend discount model and constant growth model. The return on equity is currently 9.01% and expected to decline to 7.5% over time. The dividend payout ratio is expected to decrease from 83.3% currently to 67% in the long run. Calculating the present value of expected future dividends yields an estimated current share price of Rs. 24.86.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    38 views5 pages

    Biocon: Inputs Share Price Calculation

    Uploaded by

    Aryaman Juneja
    This document contains inputs and calculations to estimate the share price of Indian Railway Finance Corporation. It uses the dividend discount model and constant growth model. The return on equity is currently 9.01% and expected to decline to 7.5% over time. The dividend payout ratio is expected to decrease from 83.3% currently to 67% in the long run. Calculating the present value of expected future dividends yields an estimated current share price of Rs. 24.86.

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    You are on page 1of 5

    BIOCON

    INPUTS Share Price Calculation


    Particular In million Rs. b (0) -11.46%
    Dividend 273 EPS (0) 77.97143
    Net Profit 8,187 RoE (0) 27.54%
    Book Value of Equity 29,725 Div (0) 2.6
    Capital Expenditure 706 COE (0) 8.00%
    Depreciation 1,829 g (0) -3.16%
    Change in Working Capital 185 g (n) 5.50%
    Net Debt 0 RoE (n) 10.00%
    No. of Shares 105 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 27.54% Equity retention Ratio (ERR) -11.46%
    Retention Ratio (b) 0.9666544522 g (FCFE) -3.16%
    Growth g (Dividend) 26.62% FCFE 9,125
    Share Price Calculation Option 1 g is going down and b is also going down for hg period
    b (0) -11.46%
    EPS (0) 77.97 Time Growth ERR FCFE
    RoE (0) 27.54% 0 -3.16% 9,125
    Div (0) 2.6 1 -1.42% 8837.05
    COE (0) 8.00% 2 1.35% 8711.17
    g (0) -3.16% 3 2.73% 8828.36
    g (n) 5.50% 4 4.12% 9069.40
    RoE (n) 10.00% 5 5.50% 0.55 9442.61
    b (n) 55.00% 6 5.50% 0.55 9961.96

    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 -3.16% 9,125
    1 -3.16% 8837.05
    2 -3.16% 8558.19
    3 -3.16% 8288.13
    4 -3.16% 8026.59
    5 5.50% 0.55 7773.30
    6 5.50% 0.55 8200.83

    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

    2454.74
    672.16
    189.22
    54.00
    15.62

    398478.20
    271197.57
    2,582.83

    stant for hg period

    PV

    2454.74
    660.35
    177.64
    47.79
    12.86

    328033.38586
    223254.01048
    2126.2286713
    Indian Railway Finance Corporation
    INPUTS Share Price Calculation
    Particular In Million Rs. b (0) 0.83
    Dividend 375 EPS (0) 1.72456
    Net Profit 2,254 RoE (0) 9.01%
    Book Value of Equity 25,029 Div (0) 0.286917
    Net Debt 1,030 COE (0) 7.54%
    No. of Shares 1,307 g (0) 7.51%
    rf 6.50% g (n) 5.00%
    rm 10.50% RoE (n) 7.50%
    beta 0.26 b (n) 0.67
    Cost of Equity 7.54%

    Dividend Distribution Method Time EPS Growth


    Return on Equity 9.01% 0 1.72 7.51%
    Retention Ratio (b) 0.8336291038 1 1.85 7.01%
    Growth g (Dividend) 7.51% 2 1.98 6.50%
    3 2.11 6.00%
    4 2.24 5.50%
    5 2.36 5.00%
    6 2.48 5.00%

    Price Per Share


    b Div PV
    0.83
    0.80 0.370367 0.344392
    0.77 0.462563 0.399954
    0.73 0.563207 0.452822
    0.70 0.671809 0.502256
    0.67 0.787676 0.547579
    0.67 0.827059

    P(5) 32.52938

    P(0) 24.86

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