High Growth

EPS in 1995 1.95

Capex per share 0.4
Depriciation per share 0.32
Revenue per share 7.45
Length of high growth period in years 5
ROE 21.74%
Retention Ratio 100%
Beta 1.3
Rm 5.50%
Rf 6%
Working Capital 20% of revenue
Debt ratio 9.55%
After Stability
growth 6%
beta 1.1
Capex, depriciation all grow @ 6%

Cost of capital in high growth 13.15%

Cost of capital in stable growth 12.05%
growth during high growth period 21.74%

High Growth Period

Year EPS Capex Depriciation Change in WC FCFE PV
1 2.37393 0.48696 0.389568 0.356687325 1.929152 1.7049506063
2 2.890022 0.592825 0.47426008 0.4342311494 2.348549 2.0756068681
3 3.518313 0.721705 0.57736423 0.5286330013 2.859124 2.5268438012
4 4.283195 0.878604 0.70288321 0.6435578158 3.480697 3.0761796436
5 5.214361 1.069613 0.85569002 0.7834672849 4.237401 3.7449410982
13.128522017
Stable Growth Period
6 5.527223 1.133789 0.90703142 0.2162283215 5.105892

Value conforming to the stable growth period 45.503358287

Present Value of the share 58.631880305

Period of High growth
EPS 0.38
Capex per share 1.21
Depriciation per share 0.17
Revenue per share 7.21
Length of high growth period in years 5
Growth 52.00%
Beta 1.6
Rm 5.50%
Rf 6%
Working Capital 10% of revenue
Debt ratio 10.00%
Capex, Depreciation & all growing @ 20%

Transition Period
Length of transition growth period in years 5
Growth changes from 52% to 6%
Capex grows @ 6%
Revenue & depreciation grows @ 12%
Beta changes from 1.6 to 1.2

Stable Period
Earnings frows @ 6%
Depreciation grows @ 6%
Capex is 125% of depreciation
beta 1.2

High Growth Period k 14.800%

Year EPS Capex Depriciation Change in WC FCFE PV

1 0.5776 1.452 0.204 0.12978 -0.67538 -0.58831
2 0.877952 1.7424 0.2448 0.155736 -0.625624 -0.544969
3 1.33448704 2.09088 0.29376 0.1868832 -0.46980416 -0.409237
4 2.0284203 2.509056 0.352512 0.22425984 -0.1367291392 -0.119102
5 3.08319886 3.010867 0.4230144 0.269111808 0.4850195292 0.422491
-1.239127
Transition Period
Year Growth rate EPS Capex Depriciation Change in WC FCFE Beta
6 42.800% 4.402808 3.191519232 0.473776128 0.1937605018 1.763079 1.52
7 33.600% 5.882151 3.383010386 0.5306292634 0.217011762 3.097997 1.44
8 24.400% 7.317396 3.585991009 0.594304775 0.2430531734 4.381826 1.36
9 15.200% 8.429641 3.80115047 0.665621348 0.2722195542 5.335445 1.28
10 6.000% 8.935419 4.029219498 0.7454959097 0.3048859007 5.675182 1.2

Stable Period
Year EPS Capex Depriciation Change in WC FCFE PV
11 9.47154423 0.987782 0.790225664 0.1707361044 9.1230073561

Value conforming to the stable growth period 36.840088069

Total Value 42.166919423

of revenue

of depreciation

Cost of capital Accumulated COC PV

14.360% 2.2802558941683 0.773193
13.920% 2.59766751463652 1.192607
13.480% 2.94783309560953 1.486456
13.040% 3.33223053127701 1.601163
12.600% 3.75209157821791 1.512538
6.565958