dfslicker for you plz read19 Jan 2018 14:45
value for Card Factory is arrived at by discounting future cash flows to their present value. We use analyst's estimates of cash flows going forward 5 years. See our documentation to learn about this calculation. 5 year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF (GBP, Millions) �58.30 �67.70 �73.20 �78.05 �83.22 Source Analyst x1 Analyst x2 Analyst x2 Extrapolated @ (6.63%) Extrapolated @ (6.63%) Present Value Discounted (@ 8.3%) �53.83 �57.72 �57.63 �56.74 �55.86 Present value of next 5 years cash flows: �282 Terminal Value Terminal Value = FCF2022 � (1 + g) � (Discount Rate � g) Terminal Value = �83 � (1 + 1.49%) � (8.3% � 1.49%) Terminal value based on the Perpetuity Method where growth (g) = 1.49%: �1,241 Present value of terminal value: �833 Equity Value Equity Value (Total value) = Present value of next 5 years cash flows + terminal value �1,115 = �282 + �833 Value = Total value / Shares Outstanding (�1,115 / 341) Discount to Share Price Value per share: �3.26 taken from Simply Wall Street