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Pan Asia Environmental Protection Group Ltd
HKEX:556

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Pan Asia Environmental Protection Group Ltd
HKEX:556
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Price: 0.485 HKD -1.02% Market Closed
Market Cap: 480.2m HKD
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DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Dec 22, 2024.

Estimated DCF Value of one 556 stock is 0.408 HKD. Compared to the current market price of 0.485 HKD, the stock is Overvalued by 16%.

DCF Value
Base Case
0.408 HKD
Overvaluation 16%
DCF Value
Price
P
Worst Case
Base Case
Best Case
0.408
DCF Value
Worst Case
Base Case
Best Case
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DCF Value: 0.408 HKD

Present Value Calculation

This block is the starting point of the DCF valuation process. It calculates the present value of a company's forecasted cash flows based on selected operating model. Adjust key parameters like discount rate and terminal growth, and alter inputs such as revenue growth and margins to see their impact on valuation.

DCF Model
Base Case Scenario

The present value of cash flows over the next 5 years amounts to -1.2m CNY. The present value of the terminal value is 380.6m CNY. The total present value equals 379.4m CNY.
Forecast Period
Years
Discount Rate
%
Show All DCF Settings
Terminal Growth
%
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DCF Value Calculation

This stage translates the present value into DCF value per share. For firm valuation models, it adjusts present value for debt and assets to derive equity value (skipped if using equity valuation model). Finally, this equity value is divided by the number of shares to determine the DCF value per share.

Present Value to DCF Value
Capital Structure

Present Value 379.4m CNY
Equity Value 379.4m CNY
/ Shares Outstanding 990m
Value per Share 0.383 CNY
CNY / HKD Exchange Rate 1.0656
556 DCF Value 0.408 HKD
Overvalued by 16%

You are using the equity valuation model. In this approach, further calculations for converting firm value to equity value are not required. The present value, obtained in the present value calculation block, already represents the equity value.

The DCF value per share is derived by dividing the present value by the number of shares:

Present Value
379.4m HKD
/
Number of Shares
990m
=
DCF Value
0.408 HKD

Valuation Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Sensitivity Analysis assesses how changes in key factors like revenue growth, margin, and discount rate affect a stock's DCF value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts, aiding in risk assessment and strategic decision-making.

DCF Financials
Financials used in DCF Calculation

Revenue
287.8m 536.7m
Net Income
-20.2m 32.9m
FCFE
-14.8m 35m

See Also

Discover More

What is the DCF value of one 556 stock?

Estimated DCF Value of one 556 stock is 0.408 HKD. Compared to the current market price of 0.485 HKD, the stock is Overvalued by 16%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Utilizing the DCF operating model, Pan Asia Environmental Protection Group Ltd's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at 379.4m CNY.

2. DCF Value Calculation. The company's capital structure is employed to derive the total Equity Value from the previously calculated Present Value of the cash flow. This Equity Value, when divided by the total number of outstanding shares, yields the DCF Value of 0.408 HKD per share.

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