Valuecruncher recently completed a valuation of Fletcher Building ($FBU.NZ). Since then the company has announced reduced earnings expectations for the 2009 financial year.
When Valuecruncher completed our valuation the $FBU.NZ was trading at NZ$6.20 – and we produced a valuation of NZ$7.24. Today $FBU.NZ closed at NZ$5.56.
With the additional guidance we decided to revisit our valuation.
We kept all our previous assumptions constant but revised our profitability assumptions. Reuters has $FBU.NZ's EBITD margin at 13.0% last year and an average of 14.2% for the last five-years.
For our analysis we have lowered our 2009 EBITDA margin to 9.0% with 2010 at 11.0% and 2011 at 12.0%.
Our analysis incorporates the cash and debt the FBU.NZ balance sheet – Valuecruncher calculates a net debt number.
Play with our assumptions – what does your analysis say?