SSE: 600763 - Topchoice Medical Co., Inc.

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 = 1.56
CAGR EPS = -5%
Key Rate = 0.0433
Excess Key Rate = 2
Price = 1.56 * (1 + -5%) / (0.0433 * 2) = 17.12

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) = 0.8561
Ebitda Yield = 0.016
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 = 0.055
Debt = 1.41
Market Cap = 31.37
Weight Debt = Market Cap / (Market Cap + Debt) = 31.37 / (31.37 + 1.41) = 0.957
Weight Cost Debt = 100% - 0.957 = 0.043
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) = 2.89
β = -1.76
Risk Premium = 5.94
Country Premium = 0
Cost Of Equity = 2.89 + -1.76 * 5.94 + 0 = -0.0757
WACC = (0.055 / 1.41) * (100% - 0.957) * (1 - 0.21) + -0.0757 + 0.957 = 2.98
Terminal Value = Discount (0.8561 * (1 + 0.016) / (2.98 - 0.016)) = 54.55
Company Value = ∑ (0.8561 / (1 + 2.98) ^ 5) = 3.8
Price = (Terminal Value + Company Value) / Count shares = (54.55 + 3.8) / 320640000 = 181.97

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) = 0.2351
FCF Yield = -0.0681
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 = 0.055
Debt = 1.41
Market Cap = 31.37
Weight Debt = Market Cap / (Market Cap + Debt) = 31.37 / (31.37 + 1.41) = 0.957
Weight Cost Debt = 100% - 0.957 = 0.043
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) = 2.89
β = -1.76
Risk Premium = 5.94
Country Premium = 0
Cost Of Equity = 2.89 + -1.76 * 5.94 + 0 = -0.0757
WACC = (0.055 / 1.41) * (100% - 0.957) * (1 - 0.21) + -0.0757 + 0.957 = 2.98
Terminal Value = Discount (0.2351 * (1 + -0.0681) / (2.98 - -0.0681)) = 1.93
Company Value = ∑ (0.2351 / (1 + 2.98) ^ 5) = 1.25
Price = (Terminal Value + Company Value) / Count shares = (1.93 + 1.25) / 320640000 = 9.93