BSE: STARCEMENT - Star Cement Limited

Price = EPS * (1 + CAGR EPS) / (Key Rate * Excess Key Rate)
EPS = Earning Per Share
CAGR EPS = CAGR 5 EPS
Key Rate — Nøkkelrente
Excess Key Rate — Ønsket overskridelse av styringsrenten
EPS = 7.3
CAGR EPS = 1.27%
Key Rate = 0.0433
Excess Key Rate = 2
Price = 7.3 * (1 + 1.27%) / (0.0433 * 2) = 85.38

Price = (Terminal Value + Company Value) / Count shares
Price - Fair pris
Terminal Value — kostnad i perioden etter prognose
Company Value — kostnad i prognoseperioden
Count shares - Antall aksjer
Terminal Value = Discount Ebitda(5) * (1 + Ebitda Yield) / (WACC - Ebitda Yield)
Company Value = ∑ (Discount Ebitda / (1 + WACC) ^ 5)
Discount Ebitda(5) = 5.83
Ebitda Yield = 0.0228
WACC = (Interest Expense / Debt) * (Weight Cost Debt) * (1 - Tax) + Cost Of Equity * Weight Debt
Interest Expense - Gjeldsbetjeningskostnader
Debt - Plikt
Weight Debt - Kapitaliseringsvekt i forhold til gjeld
Weight Cost Debt - Gjeldsvekt i forhold til kapitalisering
Tax - Avgift
Interest Expense = 0.1083
Debt = 1.3
Market Cap = 57.68
Weight Debt = Market Cap / (Market Cap + Debt) = 57.68 / (57.68 + 1.3) = 0.978
Weight Cost Debt = 100% - 0.978 = 0.022
Tax = 0.21
Cost Of Equity — diskonteringsrente
Cost Of Equity = k(f) + β * Risk Premium + Country Premium (Damodaran table)
k(f) — risikofri avkastning
β (beta) — bestemmer risikomålet for en aksje (aktiva) i forhold til markedet og viser sensitiviteten til endringer i aksjens lønnsomhet i forhold til endringer i markedslønnsomheten.
Risk Premium — risikopremie - premie for risikoen ved å investere i aksjer
Country Premium - landrisiko
k(f) = 2.39
β = -1.86
Risk Premium = 5.94
Country Premium = 0
Cost Of Equity = 2.39 + -1.86 * 5.94 + 0 = -0.0864
WACC = (0.1083 / 1.3) * (100% - 0.978) * (1 - 0.21) + -0.0864 + 0.978 = 6.44
Terminal Value = Discount (5.83 * (1 + 0.0228) / (6.44 - 0.0228)) = 104.96
Company Value = ∑ (5.83 / (1 + 6.44) ^ 5) = 23.13
Price = (Terminal Value + Company Value) / Count shares = (104.96 + 23.13) / 404180000 = 316.92

Price = (Terminal Value + Company Value) / Count shares
Price - Fair pris
Terminal Value — kostnad i perioden etter prognose
Company Value — kostnad i prognoseperioden
Count shares - Antall aksjer
Terminal Value = Discount FCF(5) * (1 + FCF Yield) / (WACC - FCF Yield)
Company Value = ∑ (Discount FCF / (1 + WACC) ^ 5)
Discount FCF(5) = 1.14
FCF Yield = -1.73
WACC = (Interest Expense / Debt) * (Weight Cost Debt) * (1 - Tax) + Cost Of Equity * Weight Debt
Interest Expense - Gjeldsbetjeningskostnader
Debt - Plikt
Weight Debt - Kapitaliseringsvekt i forhold til gjeld
Weight Cost Debt - Gjeldsvekt i forhold til kapitalisering
Tax - Avgift
Interest Expense = 0.1083
Debt = 1.3
Market Cap = 57.68
Weight Debt = Market Cap / (Market Cap + Debt) = 57.68 / (57.68 + 1.3) = 0.978
Weight Cost Debt = 100% - 0.978 = 0.022
Tax = 0.21
Cost Of Equity — diskonteringsrente
Cost Of Equity = k(f) + β * Risk Premium + Country Premium (Damodaran table)
k(f) — risikofri avkastning
β (beta) — bestemmer risikomålet for en aksje (aktiva) i forhold til markedet og viser sensitiviteten til endringer i aksjens lønnsomhet i forhold til endringer i markedslønnsomheten.
Risk Premium — risikopremie - premie for risikoen ved å investere i aksjer
Country Premium - landrisiko
k(f) = 2.39
β = -1.86
Risk Premium = 5.94
Country Premium = 0
Cost Of Equity = 2.39 + -1.86 * 5.94 + 0 = -0.0864
WACC = (0.1083 / 1.3) * (100% - 0.978) * (1 - 0.21) + -0.0864 + 0.978 = 6.44
Terminal Value = Discount (1.14 * (1 + -1.73) / (6.44 - -1.73)) = -0.3406
Company Value = ∑ (1.14 / (1 + 6.44) ^ 5) = 2.57
Price = (Terminal Value + Company Value) / Count shares = (-0.3406 + 2.57) / 404180000 = 5.51