Calculate :
>Sheet Assets- Total liabilities
United States Dollar as of 02.01.2022
s
Years 2016 2017 2018 2019 2020 343
Total Assests 9
Total Liability No.of outstanding using the CAGR
of Projected FCF
Projected FCF 11526.75 12564.1575 13694.931675 14927.47552575 16270.9483230675 = PV of FCf of the year 5 X 10
2
1
1.Assets valuation approach :
Net Assets method =
Total
Net Assets per share = Net Assets / No. of outstanding share
Fiat Chrysler Automobiles N.V ( in € million )
1 euro equals 1.1
3
in $ million
Year
2016
2017
2018
2019
2020
Total Assests
10
4
96299
96873
98044
99730
$117,907.
5
$108,817.87
$109,466.49
$110,789.72
$112,694.90
Total Liability
49469
47269
71970
63369
73869
$55,899.97
$53,413.97
$81,326.10
$71,606.97
$83,471.97
No.of outstanding
1526
1556
1568
1571
1572
$1,724.38
$1,758.28
$1,771.84
$1,775.23
$1,776.36
3. Hybrid valuation approach ( estimating the company’s intinsic value )
Home Depot ( as an example ) Fiat can be done same way but for 5 years
Intrinsic Value of a Company
Future cash Flow
in million dollars
Year 2018 2017 2016
You will be using the most recent three years 2018,2019 and 2020
Cash from Operations
13,038
12031
9783
Capital Expenditure
-2463
-2275
-1621
Please note you may sometime have negative free cash flows. In that case you will not use
FCF
10,575
9756
8162
this method. This will be a good justification for not selecting this method. Of course you need to
show calculations.
You can use arbitrary growth rate and justify it
OR
Compute Compound Annual Growth Rate (CAGR)
CAGR=
(EV/BV)^(1/N)-1
0.0901709251
Compute
Projected FCF
Year 1 2 3 4 5
Projected FCF
11526.75
12564.1575
13694.931675
14927.47552575
16270.9483230675
PV
Year 1 2 3 4 5 Total
Pvf at 10%
0.90909
0.8264
0.75132
0.68301
0.62092
PV
10478.8531575
10383.019758
10289.276066061
10195.6150588425
10102.9572327591
Toal PV of projected FCF
$ 51,449.72
Terminal Value
(It is subjective. Generally take 10 or 12 times of the project FCF of 5th year)
Terminal Value
10102.9572X10
101,029.57
Total of PV of projected FCF and Terminal Value
152,479.29
Cash and Cash Equivalent
1,778
Intrinsic Value of company ( Total PV of Projected FCF+ Terminal Value+Cash and Cash Equivalents)
154,257.29
154.2572936008
Billions
Inrinsic Value of a share
No. outstanding shares 1,103,903,507
1,104 millions
139.725809421
per share intrinsic value
Or round it to
$140 per share