Valuation:

BUY Projections for

2011-2015
Intrinsic 26.85 Stock Price
value
50.00
Actual 23.92 42.77
luevalue
Stock: - Higher Intrinsic
40.00 38.07
value 33.89
30.00 30.17
Growth Stock: - No 26.85
dividend payouts 20.00
- Earnings
reinvested 10.00
- High
0.00
Future Growth 2011 2012 2013 2014 2015

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 RECOMMENDATION: BUY
Valuation: TARGET PRICE : Rs 30.17
ACTUAL PRICE: Rs 23.92
UPSIDE : 26.12 %

HOL
D

BUY

SELL

BUY

Source:http://investing.businessweek.com/research/stocks/charts/charts.asp?ticker=EFOODS:PA

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Valuation: Discounted
Cash Flow
Figure 12: FCF growth 2 STAGE DCF MODEL
High Growth Decreasing
4,500,000 50%
45%
Stage growth stage
4,000,000
3,500,000 40%

3,000,000 35%
30%
1st Stage 43 2nd Stage 22%
2,500,000
Rupees
2,000,000
25% Growth % Growth exponential
1,500,000
Years 20%
15%
Rate Rate decay
1,000,000 F 10%
500,000 5%
1st Stage 5 2nd Stage 10 years
Time Period Time
yrs
0 0%
0 5 10 15 20
Period
Perpetuity Growth 5%
FCF

DCFC
Rate
WACC 12.34
Growth
COST OF 9.06 TAX RATE 0.35
Rate
Time Period to
DEBT 15 years
Perpetuity
COST OF 14.14 PROPORTION OF 0.35 : 0.65
Source: Student Estimates EQUITY DEBT TO EQUITY
RISK FREE 12 BETA 1.18
RATE
Compan Initiatio
Wht RM WhyFinancial Financial
13.81 BORROWING Risk
RATE Risk
Data and
13.94
Valuatio Valuatio
y n invest in Analysis
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Charts
n n
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Piaggio Piaggio
Valuation: Discounted
Cash Flow
WACC
Assumptions
WACC 12.34
COST OF 9.06 TAX RATE 0.35
DEBT
COST OF 14.14 PROPORTION 0.35 :
EQUITY OF DEBT TO 0.65
EQUITY
RISK FREE 12 BETA 1.18
RATE
RM 13.81 BORROWING 13.94
RATE

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Valuation: Variability In The
DCF
DCFModel
Sensitivity Analysis
Cash flow Growth Rate First 5 years (high
growth stage)
WACC 34 37 40 43 46 49 52
35.1 36.7 42.2
9.34 33.62 6 8 38.5 40.31 2 44.24
30.2 31.8 36.9
10.34 28.83 9 2 33.45 35.16 8 38.89
26.7 28.2 33.1
11.34 25.4 7 3 29.77 31.4 2 34.93
24.0 25.4
12.34 22.78 8 7 26.85 28.47 30.1 29.54
21.9 23.2 27.6
13.34 20.69 3 4 24.63 26.1 5 29.29
Compan Wht 20.1Financial
21.4 Valuatio Risk 25.5Data and
y invest in Analysis Analysis Charts
14.34
Overvie 18.89
Piaggio 6 1 22.72
n
24.12 9 27.15