My previous analysis tempalte (v1.10) have left out the non operating assets from the final DCF value. I have make the correction and include the non operating asset value to the DCF valuation on v 1.11 analysis template. Click here to download the v1.11 template. You can refer to the DCF valuation writeup to check out what is the non operating assets.
The non operating asset will be auto populated from the financial data in the finance input worksheet. And, users can determine to take in how many percentage of the non operating asset to DCF valuation. As valuation is is more of an art than science, there is no fixed guideline how many percentage of non operating asset that we should include. If we are confidence that the underlying assets is worth as what it stated, we can put in 100% of the value. Otherwise, we can take half of the value in order to be convervatise
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nicholas1969
Hi Intelligent Investor, Since I am new to this DCF calculation, I have 2 doubtful question on the growth rate and discount rate used in the Pintaras calculation.
In the FCF Calculation you have used 5% discount rate in the first year and increase it to 14% in the 10th year.How do you determined 5% and why do you increased 1% every year?
And for the growth rate, why do you choose 12% growth rate instaed of 20.96%? Appreciate for your expertise expalnation.tq
2014-07-07 16:00