SSE: 601988 - 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 = 0.7878
CAGR EPS = 8.66%
Key Rate = 0.0433
Excess Key Rate = 2
Price = 4.66 + (4.66 * 8.66% / 100) = 5.06

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 Ebitda(5) * (1 + Ebitda Yield) / (WACC - Ebitda Yield)
Company Value = ∑ (Discount Ebitda / (1 + WACC) ^ 5)
Discount Ebitda(5) = 688.23
Ebitda Yield = 0.0205
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 = 582.31
Debt = 5070
Market Cap = 1000
Weight Debt = Market Cap / (Market Cap + Debt) = 1000 / (1000 + 5070) = 0.1647
Weight Cost Debt = 100% - 0.1647 = 0.8353
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 = 1.11
Risk Premium = 5.94
Country Premium = 0
Cost Of Equity = 2.89 + 1.11 * 5.94 + 0 = 0.095
WACC = (582.31 / 5070) * (100% - 0.1647) * (1 - 0.21) + 0.095 + 0.1647 = 9.07
Terminal Value = Discount (688.23 * (1 + 0.0205) / (9.07 - 0.0205)) = 6473.43
Company Value = ∑ (688.23 / (1 + 9.07) ^ 5) = 2557.79
Price = (Terminal Value + Company Value) / Count shares = (6473.43 + 2557.79) / 294387790000 = 30.68

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) = 2199.01
FCF Yield = 0.2281
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 = 582.31
Debt = 5070
Market Cap = 1000
Weight Debt = Market Cap / (Market Cap + Debt) = 1000 / (1000 + 5070) = 0.1647
Weight Cost Debt = 100% - 0.1647 = 0.8353
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 = 1.11
Risk Premium = 5.94
Country Premium = 0
Cost Of Equity = 2.89 + 1.11 * 5.94 + 0 = 0.095
WACC = (582.31 / 5070) * (100% - 0.1647) * (1 - 0.21) + 0.095 + 0.1647 = 9.07
Terminal Value = Discount (2199.01 * (1 + 0.2281) / (9.07 - 0.2281)) = 12738.67
Company Value = ∑ (2199.01 / (1 + 9.07) ^ 5) = 5697.5
Price = (Terminal Value + Company Value) / Count shares = (12738.67 + 5697.5) / 294387790000 = 62.63