Treść książki
Przejdź do opcji czytnikaPrzejdź do nawigacjiPrzejdź do informacjiPrzejdź do stopki
Theimpactoffreecashflowonmarketvalueoffirm
19
ThepresentvalueofFCFEfortheyearsfrom2011to2015discountedatthe
requiredrateofreturnonequityforHikmapharmaceuticalfirmis(0.20).Thepro-
jectedFCFEforyear2016is204.841$.Theterminalvalue(P5)foryear2015is
143.950$whichisequalto204.841$dividedby20%oftherequiredreturn,minus
theanticipatedgrowthrateof5.77%andequal89.393$.Thecomputationisasfol-
low:
1
FCFE
=193.667(1+0.0577)
6=FCFE5(1+g)
=204.841
=204.841/(020-0.0577)
P5=FCFE
=143.950/(1+020)
PV(P
=143.950
=89.393
5)=P
6/(r-g)
5
5
5/(1+r)
So,thetotalcurrentvalueofHikmacompanyisthesumoffiveanticipatedpre-
sentvaluesofFCFEplusthepresentvalueoffirmvalueattimet=5(PVofterminal
valueP5).
Table3.CurrentvalueforHikmafirm
723.287$
143.950$
867.237$
PV(terminalvalue)
Totalcurrentvalue
PV(FCFE)
Whenweworthastockfortheyearfrom2011to2015equityvalueisthedi-
scountpresentvalueoftheexpectedFCFEduringtheperiod2011-2015plusthe
terminalvalueofstockattheendoftheperiod.InthecaseofHikmafirmvaluation,
weassumethattheperiod2011-2015willlastfiveyears.Thisisstandardintheva-
luationindustry.Projectionsforfiveyearsarenotassured.Thereforethevalueofthe
stockinthe2011-2015periodisthediscountedpresentvalueforthefutureFCFE
whichcomputedfromtheP
5=FCFE6/(r-g).ThedifferenceisthatthePVofstock
attime=tisequaltotheexpectedFCFEattime=(t+1).Thereturnoninvestment
forthelong-termgrowthratewithbothrandgisconstantandrisexactlygreater
thanb.SinceweareusingexpectedFCFEfortheperiod2011-2015,theterminal
valueofthestockisP
5=FCFE6/(r-g).ThevalueofP
5isfiveyearsintothefuture
andmustbediscounted.
