Fisher & Paykel Appliances ($FPA.NZ) is a New Zealand-based designer, manufacturer and marketer of household appliances.  The company has just completed a major recapitalisation. The current share price is NZ$0.69.  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$0.67 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 2.9% below the current share price of NZ$0.69.

Assumptions

• Revenue: Reuters aggregates seven analysts covering $FPA.NZ and this produces mean estimates of 2010 and 2011 revenues of NZ$1.355 billion and NZ$1.356 billion respectively. For our analysis we have used NZ$1.350 billion in 2010, NZ$1.350 billion in 2011 and NZ$1.375 billion in 2012.
• Profitability: We have used a flat EBITDA margin of 10.5% in 2010 then 12.0% for 2011 and beyond. Reuters has $FPA.NZ‘s EBITD margin at an average of 9.88% over the last five-years.
• Capital Expenditure: We have assumed capital expenditures of NZ$50.0 million per annum moving forward.
• Discount Rate: 8.5%. 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: 3.0%.

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

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

We have previously looked at Fisher & Paykel Healthcare ($FPH.NZ). Fisher & Paykel Appliances (FPA.NZ) is the original appliances side of the business. The current share price is NZ$1.33 – just above the 52-week low. How is this in relation to the intrinsic value of the company’s shares?

Valuecruncher valuation model of $FPA.NZ with interactive assumptions

Valuecruncher produces a valuation of NZ$1.33 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 right on the current share price of NZ$1.33.

Assumptions

• Revenue: Reuters aggregates seven analysts covering $FPA.NZ and this produces mean estimates of 2009 and 2010 revenues of NZ$1.445 billion and NZ$1.549 billion respectively. For our analysis we have used NZ$1.425 billion in 2009, NZ$1.525 billion in 2010 and NZ$1.60 billion in 2011.
• Profitability: We have used an EBITDA margin of 10% in 2009 rising to 11% in 2011. Reuters has $FPA.NZ‘s EBITD margin at 10.3% last year and an average of 12.8% over the last five-years.
• Capital Expenditure: We have assumed capital expenditures of NZ$85.0 million in 2009 then NZ$65.0 million moving forward.
• Discount Rate: 9.5%. The PwC New Zealand cost of capital report has $FPA.NZ at a WACC of 9.3% with the wider NZ market at 9.5%.
• Terminal Growth Rate: 3.5%.

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