Running The Numbers – Fisher & Paykel Appliances ($FPA.NZ)
Fisher & Paykel Appliances ($FPA.NZ) is a New Zealand-based designer, manufacturer and marketer of household appliances. The current share price is NZ$0.43. This is just above the 52-week low for the shares of NZ$0.37. How is this in relation to the intrinsic value of the company’s shares?
Valuecruncher Interactive Analyst Report For $FPA.NZ
Valuecruncher produces a valuation of NZ$0.50 for $FPA.NZ. This is a current valuation (an estimate of intrinsic value using a discounted cash flow model) not a target price. This valuation is 16.3% above the current share price of NZ$0.43.
Assumptions
- Revenue: Reuters aggregates seven analysts covering $FPA.NZ and this produces mean estimates of 2009 and 2010 revenues of NZ$1.388billion and NZ$1.417 billion respectively. For our analysis we have used NZ$1.385 billion in 2010, NZ$1.415 billion in 2011 and NZ$1.450 billion in 2012.
- Profitability: We have used a flat EBITDA margin of 10.5%. Reuters has $FPA.NZ‘s EBITD margin at 7.1% last year and an average of 12.8% over the last five-years.
- Capital Expenditure: We have assumed capital expenditures of NZ$75.0 million in 2010 then NZ$65.0 million moving forward.
- Discount Rate: 8.0%. The PwC New Zealand cost of capital report has $FPA.NZ at a WACC of 7.5% with the wider NZ market at 8.3%.
- Terminal Growth Rate: 2.5%.
Our analysis incorporates the cash and debt the $FPH.NZ balance sheet – Valuecruncher calculates a net debt number.
Play with our assumptions – what does your analysis say?
Disclosure: None
Tags: FPA