Company

Dt
CMP

Bajaj Auto Ltd

12/8/2012
1785.65

EBIT
EBT
Tax Expenses
BV of debt
BV of Equity
Cash
BV of Capital py
NWC
WC of CY
WC of PY
Net Capex
Cash
Debt
Equity
Minority Interest
No. of Shares Outstanding
Risk free rate (rf)
Market return (rm)
Beta (SG)
Rating
Default Spread
Super normal phase
Marginal Tax Rate
Effective Tax Rate
Beta (Terminal stage)
Wt. of equity @ Terminal Stage

2,436.60
1,804.40
524.8
2,370.70
4,031.90
575.1

5,827.50
495.4
1480.7
985.3
867.2
1606.1
3233.9
4989
0
169,833,995
8%
13.11%
0.1718

AA
1.00%
5
33.99%
29.08%
0.5
60.00%

Supernormal Growth Stage

Terminal Stage

Debt
Equity
Weight of Debt (wd)
Weight of Equity (we)
Cost of debt (rd)
Cost of Equity (ke)
WACC
NOPAT
Reinvestments
FCFF
Reinvestment rate
ROC
Growth rate (gs)

3233.9
4989
39.33%
60.67%
5.94%
8.88%
7.72%
1727.928043
1362.6
3090.528043
78.86%
29.65%
23.38%

NOPAT
Reinvestments
FCFF

0
1
2
1727.928043 2131.956 2630.455
1362.6 1681.206 2074.31
365.3280426 450.7499 556.1453

NPV
PV of Terminal Value
Firm Value
Cash
Debt & Minority Interest
Equity Value of the Firm
Value of each share
Situation

$2,934.20
($1,048,809.74)
($1,045,875.54)
1606.1
3233.9
($1,047,503.34)
-61678.07192
overvalued

gn
wd
we
Beta (Terminal Stage)
ke
rd (After Tax)
Marginal Tax Rate
WACC
ROC (Terminal Stage)
Reinvestment Rate

3
3245.514831
2559.33025
686.1845813

Terminal Stage
8%
40.00%
60.00%
0.2
9.02%
5.94%
33.99%
7.79%
20%
40.00%

4
5 TV
4004.388878 4940.705 5335.961
3157.758975 3896.114 2134.384
846.6299027 1044.591 3201.577
TV
-1521373