Septa Sir,,
I try to learn from you at the interface of the forum and I dedicate my 1st fair value working to u......
I have tried to find out the fair value of GNA as per your methodology by taking the growth rate of 11% to 8% and discounting factor of 10%
and i find fair value at 268...
but i am confused whether growth rate and discounting factor taken by me is correct or not...
please guide over it,
No of shares 21470000
Initial Cash flow'' 259,560,000.00
Discount Rate 10%
Terminal Growth 5%
Growth 1-5 11%
growth 6-10 8%
Margin Of Safety 25%
Year Flows Growth Value
1 288,111,600.00 11 $261,919,636.00
2 319,803,876.00 11 $264,300,724.00
3 351,784,263.60 10 $264,300,724.00
4 386,962,689.96 10 $264,300,724.00
5 421,789,332.06 9 $261,897,990.00
6 459,750,371.94 9 $259,517,098.00
7 501,127,905.42 9 $257,157,852.00
8 541,218,137.85 8 $252,482,255.00
9 584,515,588.88 8 $247,891,668.00
10 631,276,835.99 8 $243,384,547.00
Terminal value 662,840,677.79
PV of 1-10 $2,577,153,218.00
Terminal value 5,111,075,500.00
Total Present Value $7,688,228,718.00
Number of shares 21,470,000.00
Intrinsic value 358.09
Margin of safety 268.57