SSE: 601398 - Industrial and Commercial Bank of China 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 = 1.02
CAGR EPS = 3.5%
Key Rate = 0.0433
Excess Key Rate = 2
Price = 5.97 + (5.97 * 3.5% / 100) = 6.17

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) = 826.56
Ebitda Yield = -0.0028
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 = 750.03
Debt = 2030
Market Cap = 1520
Weight Debt = Market Cap / (Market Cap + Debt) = 1520 / (1520 + 2030) = 0.4282
Weight Cost Debt = 100% - 0.4282 = 0.5718
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) = 2.82
β = 0.5193
Risk Premium = 5.94
Country Premium = 0
Cost Of Equity = 2.82 + 0.5193 * 5.94 + 0 = 0.059
WACC = (750.03 / 2030) * (100% - 0.4282) * (1 - 0.21) + 0.059 + 0.4282 = 29.09
Terminal Value = Discount (826.56 * (1 + -0.0028) / (29.09 - -0.0028)) = 783.1
Company Value = ∑ (826.56 / (1 + 29.09) ^ 5) = 2063
Price = (Terminal Value + Company Value) / Count shares = (783.1 + 2063) / 356406260000 = 7.99

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) = 2558.94
FCF Yield = 0.1278
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 = 750.03
Debt = 2030
Market Cap = 1520
Weight Debt = Market Cap / (Market Cap + Debt) = 1520 / (1520 + 2030) = 0.4282
Weight Cost Debt = 100% - 0.4282 = 0.5718
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) = 2.82
β = 0.5193
Risk Premium = 5.94
Country Premium = 0
Cost Of Equity = 2.82 + 0.5193 * 5.94 + 0 = 0.059
WACC = (750.03 / 2030) * (100% - 0.4282) * (1 - 0.21) + 0.059 + 0.4282 = 29.09
Terminal Value = Discount (2558.94 * (1 + 0.1278) / (29.09 - 0.1278)) = 4936.63
Company Value = ∑ (2558.94 / (1 + 29.09) ^ 5) = 4762.08
Price = (Terminal Value + Company Value) / Count shares = (4936.63 + 4762.08) / 356406260000 = 27.21