Tuesday, October 4, 2016

ENH Quick Valuation

Just some basic valuation models and examples, some may not be completely correlative to be precise. Just wanted to get you all an idea of why a valuation could be $6.5bln.
Price points from the results are in bold.

O/S 67.74m
Assets: $14.8bln
 -goodwill:$0.511bln
 = $14.289bln
 -Liabilities: $9.72bln
$4.56bln shareholder equity
X 27% average buyout premium = $5.8bln ($85.62 PPS Baseline, brand not considered)

 If Goodwill considered: $0.511bln +27%= $0.648bln
+$5.8bln= $6.44897bln ($95.20 PPS)

 Income: 310m +27%
 = $393m or .393bln
 $73.44 Book/sh
+$16.14 cash/sh
=$89.58
+ Div yield 2.34%
=$91.67
 X67.74m O/s
= $6.209bln ($91.67 PPS)
+.393bln Income
=$6.602bln ($97.46 PPS)

Key approximate levels until we have confirmation of buyout price:
$5.8bln ($85.62 PPS Baseline, brand not considered)
$6.209bln ($91.67 PPS)
$6.44897bln ($95.20 PPS)
$6.602bln ($97.46 PPS)
mean of 4 valuation figures above= $6.265bln ($92.48 PPS)

No comments:

Post a Comment