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    FV 1000 1 2 3 C 10% Fvofcf E.Y. 10% PV OF CF 90.909090909 82.6446281 826.446281 T 3 Price FV C E.Y. T Price FV C E.Y. T Price

    Uploaded by

    Mayank Gupta
    The document appears to contain calculations for a discounted cash flow (DCF) valuation of Indo Rama Synthetics (India) Ltd. It projects the company's unlevered free cash flows over the next 10 years with a terminal period, discounts them back using a 12% discount rate, and sums them to get a DCF value of Rs. 31,687 crores. It then compares this DCF value to the company's current market capitalization of Rs. 813 crores, indicating that the DCF valuation is over 38 times higher than the current market value.

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    FV 1000 1 2 3 C 10% Fvofcf E.Y. 10% PV OF CF 90.909090909 82.6446281 826.446281 T 3 Price FV C E.Y. T Price FV C E.Y. T Price

    Uploaded by

    Mayank Gupta
    32 views10 pages
    The document appears to contain calculations for a discounted cash flow (DCF) valuation of Indo Rama Synthetics (India) Ltd. It projects the company's unlevered free cash flows over the next 10 years with a terminal period, discounts them back using a 12% discount rate, and sums them to get a DCF value of Rs. 31,687 crores. It then compares this DCF value to the company's current market capitalization of Rs. 813 crores, indicating that the DCF valuation is over 38 times higher than the current market value.

    Original Title

    Bond

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    The document appears to contain calculations for a discounted cash flow (DCF) valuation of Indo Rama Synthetics (India) Ltd. It projects the company's unlevered free cash flows over the next 10 years with a terminal period, discounts them back using a 12% discount rate, and sums them to get a DCF value of Rs. 31,687 crores. It then compares this DCF value to the company's current market capitalization of Rs. 813 crores, indicating that the DCF valuation is over 38 times higher than the current market value.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    32 views10 pages

    FV 1000 1 2 3 C 10% Fvofcf E.Y. 10% PV OF CF 90.909090909 82.6446281 826.446281 T 3 Price FV C E.Y. T Price FV C E.Y. T Price

    Uploaded by

    Mayank Gupta
    The document appears to contain calculations for a discounted cash flow (DCF) valuation of Indo Rama Synthetics (India) Ltd. It projects the company's unlevered free cash flows over the next 10 years with a terminal period, discounts them back using a 12% discount rate, and sums them to get a DCF value of Rs. 31,687 crores. It then compares this DCF value to the company's current market capitalization of Rs. 813 crores, indicating that the DCF valuation is over 38 times higher than the current market value.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 10

    FV 1000 1 2 3

    C 10% FV OF CF 100 100 1100


    E.Y. 10% PV OF CF 90.909090909 82.6446281 826.446281 1000
    T 3
    Price ($1,000.00)

    FV 1000 1000 1000 1000 1000 1000 1000


    C 10% 11% 12% 13% 14% 15% 16%
    E.Y. 10% 10% 10% 10% 10% 10% 10%
    T 3 3 3 3 3 3 3
    Price ($1,000.00) ($1,024.87) ($1,049.74) ($1,074.61) ($1,099.47) ($1,124.34) ($1,149.21)

    FV 1000 1000 1000 1000 1000 1000 1000


    C 12% 12% 12% 12% 12% 12% 12%
    E.Y. 10% 10% 10% 10% 10% 10% 10%
    T 10 11 12 13 14 15 16
    Price ($1,122.89) ($1,129.90) ($1,136.27) ($1,142.07) ($1,147.33) ($1,152.12) ($1,156.47)
    ($122.89) ($105.03) ($86.54) ($67.46) ($47.86) ($27.78) ($7.26)
    Scalar 6 1
    Mat A 2 5 14 35 2
    5 7 35 49 4
    5
    12 30 -10 -25
    30 42 -25 -35

    Addition and Subtraction 174 270


    14 35 270 444
    35 49
    174 270
    10 25 270 444
    25 35

    Multiplication 174 270 11886 19320


    270 444 19320 31206

    Transpose 174 270


    270 444

    Inverse 0.101928 -0.061983


    -0.061983 0.039945
    2 8 9 20 2 3 -3
    5 3 0 2 10 2 -2
    4 2 7 3 2 40 9
    2 1 6 -3 -2 9 33

    MULTIPLICATION 21 20 408 362


    59 60 136 11
    73 38 163 229
    89 20 113 188

    TRANSPOSE 21 59 73 89
    20 60 38 20
    408 136 163 113
    362 11 229 188

    MINVERSE -0.000397 -0.008649 0.004097 -0.001355


    0.00446 0.004262 0.003937 -0.004931
    -0.019779 0.043202 -0.01142 0.011632
    0.024596 -0.03622 0.00579 -0.005952
    Assumptions
    Tax Rate 25%
    Discount Rate 12%
    Perpetural Growth Rate 3%
    EV/EBITDA Mulltiple 7.0x
    Transaction Date 12/31/2017
    Fiscal Year End 6/30/2018
    Current Price 25.00
    Shares Outstanding 20,000
    Debt 30,000
    Cash 239,550
    Capex 15,000

    Date 12/31/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022


    EBIT
    Less: Cash Taxes
    Plus: D&A
    Less: Capex
    Less: Changes in NWC
    Unlevered FCF
    (Entry)/Exit
    Transaction CF
    Intrinsic Value Market Value
    Enterprise Value 489,747 Market Cap 500000
    Plus: Cash 239,550 Plus: Debt 30000
    Less: Debt 30,000 Less: Cash 239549.5
    Equity Value 699,297 Enterprise Value 290450.5

    Equity Value/Share 34.96 Equity Value/Share 25

    9.96
    Rate of Return
    39.86% Target Price Upside 39.86%
    Internal Rate of Return (IRR) 0.263478

    6/30/2022 Market Value vs Intrinsic Value


    Market Value 25
    Upside 9.964825
    Intrinsic Value 34.96483
    Expected Return Risk Free Rate StdDev Sharpe Ratio
    10% 3% 0.1% 70 Sharpe R
    10% 3% 1% 7.00 80
    10% 3% 2.00% 3.50
    70
    10% 3% 3.00% 2.33
    10% 3% 4.00% 1.75 60
    10% 3% 5.00% 1.40
    10% 3% 6.00% 1.17 50
    10% 3% 7.00% 1.00 40
    10% 3% 8.00% 0.88
    10% 3% 9.00% 0.78 30
    10% 3% 10.00% 0.70
    20
    10% 3% 11.00% 0.64
    10% 3% 12.00% 0.58 10

    0
    0.0% 2.0% 4.0% 6.0%
    Sharpe Ratio

    2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%


    Dicounted Cash Flow Valuation
    INDO RAMA SYNTHETICS (INDIA) LTD

    Initial Cash Flow (Rs Cr) (1,392) (31,687)


    813
    Years 1-5 6-10 -3896%
    FCF Growth Rate 15% 12%
    Discount Rate 12%
    Terminal Growth Rate 2%

    Net Debt Level (Rs Cr) (4,044)

    Year FCF Growth Present Value


    1 (1,601) 15% (1,429)
    2 (1,841) 15% (1,468)
    3 (2,117) 15% (1,507)
    4 (2,435) 15% (1,547)
    5 (2,800) 15% (1,589)
    6 (3,136) 12% (1,589)
    7 (3,512) 12% (1,589)
    8 (3,933) 12% (1,589)
    9 (4,405) 12% (1,589)
    10 (4,934) 12% (1,589)

    Final Calculations
    Terminal Year (5,033) -5033
    PV of Year 1-10 Cash Flows (15,483) (15,483)
    Terminal Value (16,204) -16204.06
    Total PV of Cash Flows (31,687) (31,687)
    Current Market Cap (Rs Cr) 813

    Note: See explanation of DCF here


    aluation
    IA) LTD

    DCF Value (As calculated in cell B29)


    Current Market Cap
    DCF as % of Current Mkt Cap

    (1,600.75)
    (1,840.86)
    (2,117)
    (2,435)
    (2,800)
    (3,136)
    (3,512)
    (3,933)
    (4,405)
    (4,934)

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