NYSE: LFC - China Life Insurance Company Limited

Price = Avg Price + (Avg Price * CAGR EPS% / 100)
EPS = Earning Per Share
CAGR EPS = CAGR 5 EPS
Key Rate — Nøkkelrente
Excess Key Rate — Ønsket overskridelse av styringsrenten
EPS = 0.99
CAGR EPS = 8.66%
Key Rate = 0.0433
Excess Key Rate = 2
Price = 5.58 + (5.58 * 8.66% / 100) = 6.06

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) = 503.16
FCF Yield = 0.0555
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
Debt = 7.73
Market Cap = 105.38
Weight Debt = Market Cap / (Market Cap + Debt) = 105.38 / (105.38 + 7.73) = 0.9317
Weight Cost Debt = 100% - 0.9317 = 0.0683
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) = 3
β = 0
Risk Premium = 5.94
Country Premium = 0
Cost Of Equity = 3 + 0 * 5.94 + 0 = 0.03
WACC = (0 / 7.73) * (100% - 0.9317) * (1 - 0.21) + 0.03 + 0.9317 = 0.0279
Terminal Value = Discount (503.16 * (1 + 0.0555) / (0.0279 - 0.0555)) = 9602.72
Company Value = ∑ (503.16 / (1 + 0.0279) ^ 5) = 2262.8
Price = (Terminal Value + Company Value) / Count shares = (9602.72 + 2262.8) / 28264710000 = 419.8