1 / 12

Valuation Mod-9 Oil and Gas Field Services

Valuation Mod-9 Oil and Gas Field Services. Chris Jennis 3 /24/2014. Agenda Abnormal Growth Model Module 9 Summary Analyst Forecast Equity Valuation Adjusting Value Estimates Sensitivity Analysis Questions. Abnormal Enterprise Income Growth Model. Module 9 Valuation of Equity

ewan
Télécharger la présentation

Valuation Mod-9 Oil and Gas Field Services

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Valuation Mod-9Oil and Gas Field Services Chris Jennis 3/24/2014

  2. Agenda Abnormal Growth Model Module 9 Summary Analyst Forecast Equity Valuation Adjusting Value Estimates Sensitivity Analysis Questions

  3. Abnormal Enterprise Income Growth Model

  4. Module 9 • Valuation of Equity • VEnt- VD = Veq • Valuation Formulas for Equity • Dividend Discount Model • Residual Income Model • Use of Analysts’ forecasts • Provided earnings and dividends can indicate value • Adjusting Valuation to Valuation Date • Value today, not at date of last balance sheet • Assuming payoffs occur evenly during year • Sensitivity Analysis • Refine analysis with different inputs

  5. Valuing Equity

  6. Analysts’ Forecast

  7. Equity Valuation using Dividend Discount Model = 104.09

  8. Equity Valuation using Residual Income Model =72.08 (assuming g=3%) When Veq=87.76 (PriceLine) g=5.4% Analysis:

  9. Long-term Growth in Earnings/Sales g=5.4% 1.054= CI(t+1)-.01052*53.93 3.91 CI(t+1)= 10.110 1+gincome= 10.110/8.96 = 1.129 (growth rate outside of horizon)

  10. Adjusting Value Estimate 1st Adjustment: Adjusting Date [VJan2014*(1+r)^79/365] [124,347*(1.1004)^79/365] $130,887 2nd Adjustment: Mid-Year Adjustment (1+rEnt)^.5 (1.1004)^.5 1.0502 126,948*1.0502= $133,626

  11. Sensitivity Analysis Market Value= $128,964 Enterprise Value > Market Value: Market Undervalued, Buy Enterprise Value < Market Value: Market Overvalued, Sell

  12. Questions?

More Related