Particulars

Sales
Net income
Interest(1-T)
Depreciation
FCInv
Change WCInv
FCFF
Target debt-to-asset ratio
FCFE

Debt
Equity
Cost of equity
Cost of debt
Corporate tax
WACC (during high growth stage)
WACC( during stable stage)
long term growth rate
terminal value(for firm)
Value of firm
terminal value(for equity)
Value of equity
No. of shares outstanding
Intrinsic value of stock
MRF is significantly undervalued

FCFF and FCFE Mo

2013

134,447,500,000.00
8,022,100,000.00
1,293,732,000.00
3,737,000,000.00
951,400,000.00
-3,749,600,000.00
15,851,032,000.00
0.59
10,730,417,584.00

700 crore(secured)+97.86(unsecured)= 797.86 crores

7,978,600,000.00

36,554,400,000.00
10.00%
11.23%
34.00%
9.54%
6.00%
4.90%

1,624,832,636,870.00

1,423,101,524,228.29

245,011,036,269.21

312,391,603,197.80
4,241,143.00
73,657.41

FCFF and FCFE Model of Valuation

2014
2015
141,542,194,818.40 151,426,551,985.74
8,492,531,689.10
8,328,460,359.22
888,017,644.80
615,396,227.85
34,473,623,321.50 18,950,829,818.96
-130,653,025,833.83 -101,880,409,381.90
-503,095,067.31
-1,779,184,290.12
175,010,293,556.54 131,554,280,078.04
0.55
###
82,995,275,086.61 63,480,468,001.81

2016
161,943,508,011.79
8,097,175,400.59
430,531,201.00
17,045,484,718.34
-12,505,309,616.63
2,965,253,155.66
35,113,247,780.90
0.55
20,055,750,606.16

2017
173,133,549,223.51
7,791,009,715.06
301,199,628.22
21,694,405,776.15
30,512,161,388.75
1,784,164,802.71
-2,509,711,072.03
###
3,022,106,883.45

2018
185,039,753,072.78
8,271,276,962.35
210,719,259.90
23,186,306,212.08
9,791,757,336.98
4,003,386,091.78
17,873,159,005.57
0.55
12,495,562,849.73

2012-13
Fixed asset
Tangible asset
intangible asset
Non current investme
lonterm loans
Other non current ass
Current investment
Invetery
Debtors
Cash
Short term loans and
Other current assets

Sales last year

Asset turn over ratio

Crores
2964.15
5.39
359.12
84.68
138.12
34.89
821.48
1795.29
1556.14
330.81
145.14
22.13
8257.34

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.968363
R Square 0.937726
Adjusted R 0.929942
Standard Er3.3E+011
Observatio
10
ANOVA
df
Regression
Residual
Total

13444.75
Intercept
X Variable
1.628218

SS
1 1.3E+025
8 8.8E+023
9 1.4E+025

Coefficients
Standard Error
### 2.8E+011
### 0.004239

MS
F
Significance F
1.3E+025 120.4645 4.22E-006
1.1E+023

t Stat
P-value Lower 95%Upper 95%
Lower 95.0%
Upper 95.0%
-1.210565 0.260611 -1E+012 3.1E+011 -1E+012 3.1E+011
10.97563 4.22E-006 0.036753 0.056304 0.036753 0.056304

CompaniesTotal AssetSales
Asset TurnoYear
MRF
### 1.3E+011 0.016292
Jk tyres
4733.28 6002.16 0.788596
tvs
83589.06 167099.1 0.500236
Apollo
8263.8 22360.59 0.36957
Goodyear
85935
129737 0.662379
Birla tyres
3605.5 3016.35 1.195319
SUM
3.532392
Average turn over ratio
0.588732

Capital expenditure
2014
0.63
2015
0.65
2016
0.68
2017
0.68
2018
0.68

Sales
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004

GDP
###
###

###
###
###
###
###
###
###
###

###
###
###
###
###
###
###
###
###
###

Tyre indust
###
###
###
###
###
###
###
###
###
###

0.28622

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.977202
R Square 0.954924
Adjusted R 0.949289
Standard Er3.2E+010
Observatio
10
ANOVA
df
Regression
Residual
Total

SS
MS
F
1 1.8E+023 1.8E+023 169.4761
8 8.3E+021 1.0E+021
9 1.8E+023

Coefficient Standard Ert Stat

P-value
Intercept 8.5E+009 2.4E+010 0.353594 0.73278
X Variable 0.111416 0.008558 13.0183 1.15E-006

Auto industry
###
###
###
###
###
###
###
###
###
###

0.483576

gdp
2014
2015
2016
2017
2018

###
###
###
###
###

Auto Industtyre
0.00
0.00
0.00
0.00
0.00

Significance F
1.15E-006

Lower 95%Upper 95%Lower 95. Upper 95.0%

-5E+010 6.4E+010 -5E+010 6.4E+010
0.09168 0.131152 0.09168 0.131152

indusSales
0.00
0.00
0.00
0.00
0.00

Asset turnoAssets
0.00 0.302512
0.00
0.00 0.588732
0.00
0.00
0.7
0.00
0.00
0.588
0.00
0.00
0.588
0.00

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.987404
R Square 0.974967
Adjusted R 0.971838
Standard Er6.5E+009
Observatio
10
ANOVA
df
Regression
Residual
Total

SS
MS
1 1.3E+022 1.3E+022
8 3.4E+020 4.2E+019
9 1.3E+022

Coefficients
Standard Error t Stat
Intercept
-5E+009 4.9E+009 -1.026554
X Variable
0.26736 0.015147 17.65148

depreciatio 0.073679

9.5E+008

###
change in adepreciatioFixed capitchange in fchange in w
WC
year
###
0.00
###
2.1E+010
0.00
0.00
0.00 -4E+009 2.5E+010
0.00
0.00
0.00 2.5E+010
0
0.00
0.00
0.00
0
0
0.00
0.00
0.00
0
0
0
0
0
0

12
13
14
15
16
17
18

F
Significance F
311.5749 1.08E-007

P-value Lower 95%Upper 95%

Lower 95.0%
Upper 95.0%
0.334666 -2E+010 6.2E+009 -2E+010 6.2E+009
1.08E-007 0.232432 0.302288 0.232432 0.302288