Particulars 2021

Net sales
Growth Rate
Income from marketable securirties
Non-operating income
Total Income
Cost of goods sold
% of Sales
Selling and Admin. Expenses
% of Sales
Depreciation
% of Fixed Assets
Interest expenses
% of Debt
Total costs and expenses
Profit before interest and tax (PBT)
Taxes
Tax Rate
PAT
Dividend
% of PAT
Retained Earnings

Particulars 2021
Equity Capital
Growth Rate
Reserves and surplus
Debt
Growth Rate
Total Liabilities
Fixed Assets
Growth Rate
Investements
Net Current Assets

Total Assets
2022 2023 2024 2025

2022 2023 2024 2025

 Computation of OIC
PARTICULARS P1
Total Assets 355
Less: Investments 20
Opearting Invested Capital (Total Assets-Investments) 335

Computation of NOPLAT
PARTICULARS 2015
PBT 50
1.(Plus) Interest expenses 20
2.(minus) Interest Income 0
3.(minus) Non-operating Income 0
EBIT (PBT+1-2-3) 70
Tax provision from income statement 20
(Plus) Tax shied on interest expenses (Tax @40%) 8
(minus) Tax on interest income 0
(minus) Tax on non-operating income 0
Taxes on EBIT 28
NOPLAT = EBIT - Taxes on EBIT 42

Computation of ROIC
PARTICULARS 2015
1. NOPLAT 42
2. Operating Invested capital at the beginning N/A
ROIC (NOPLAT/OIC at the beginning)*100 N/A
 Computation of Net Investment
PARTICULARS 2015
Net Fixed Assets at the end 225
(Plus) Net current assets at the end 110
a. Total assets at the end 335
Net Fixed Assets at the beginning N/A
(Plus) Net current assets at the beginning N/A
b. Total assets at the beginning N/A
Net Investment (a-b) N/A

Computation of FCF
PARTICULARS 2015
1. NOPLAT 42
2. Minus Net Investment N/A
FCF (NOPLAT-NI) N/A

Computation of Financing Flow

PARTICULARS 2015
FCF N/A
(Plus) non-operating cash flow 0
Financing Flow N/A
Alternative way for Financing Flow
After tax interest expense 12
(+) Cash dividend 15
(+) Redemption of debt
(-) New borrowings
(-) Share issues
(+) Excess marketable securities
(-) After tax income on excess securities
Financing Flow

Computation of Growth Rate

PARTICULARS 2015
Net Investment
Operating Invested Capital
Growth rate = NI/OIC

inference:
1) the operating invested capital is increasing over the three periods. This inc
2) NOPLAT has increased initially and then has decreased. It is a metric that c
3) ROIC has decreased. This tells us that the efficiency of aloocating the capita
4) the net investment has increased by 85 margin. This tell us about the comp
5) the free cash flow is not good in P3 as it is negative and shows that the com
6) the financing flow is calculated by adding free cash flow and non-operating
n of OIC
P2 P3
360 490
10 40
350 450

of NOPLAT
2016 2017 2018 2019
140 143
25 24
5 13
20 25
140 129
56 58
10 9.6
2 5.2
8 10
56 52.4
84 76.6

n of ROIC
2016 2017 2018 2019
84 76.6
335 350
25.0746269 21.885714
et Investment
2016 2017
230 290
120 160
350 450
225 230
110 120
335 350
15 100

n of FCF
2016 2017 2018 2019
84 76.6
15 100
69 -23.4

inancing Flow
2016 2017 2018 2019
69 -23.4
12 15
81 -8.4

15 14.4
30 32
42
92
30 30
-10 -30
3 7.8
 44 70.6

Growth Rate
2016 2017 2018 2019

ee periods. This increase can be due to new projects initiated by the company.
It is a metric that calculates a company's operating profits after adjusting taxes.
oocating the capital is not profitable to investments.
us about the company's investment in property, plants and fixed and current assets
shows that the company is inefficient in generating cash.
and non-operating cash flow
e company.
usting taxes.

and current assets

Year EPS EGR
Current 5
1 6 20%
2 7.2 20%
3 8.64 20%
4 10.37 20%
5 12.44 20%

6 14.68 18%
7 17.03 16%
8 19.41 14%
9 21.74 12%
10 23.92 10%

We know that the value of stock at the end of 10th year can be calc

Value during low growth period = EPS of transition period (1+gn) pa

Therefore, value of share is = 23.92(1.10)(0.6)/0.14-0.10

Value of share = 394.68
PV of Value of Share in SGP =

PV of Value of Share in SGP =

the value of the share as per three stage growth model will be:

PV of Div. in high growth phase

PV of Div. in transition phase
PV of Value of Share in SGP
value of the share as per three stage growth m
 Pay out ratio DPS COE
20% 1.2 18%
20% 1.44 18%
20% 1.73 18%
20% 2.07 18%
20% 2.49 18%
PV of Div. in high growth phase

28% 4.11 17.2

36% 6.13 16.4
44% 8.54 15.6
52% 11.3 14.8
60% 14.35 14
PV of Div. in transition phase

k at the end of 10th year can be calculated based on Earning per share in 11th year and taking g

= EPS of transition period (1+gn) pay out ratio in stable growth period/cost of equity in stable p

.92(1.10)(0.6)/0.14-0.10
 Value of share/ Cum.COE in year 10

394.68/4.72 = 83.62

ee stage growth model will be:

n high growth phase 5.27

n transition phase 13.53
of Share in SGP 83.62
e share as per three stage growth model 102.42
 Cum.COE PV of DPPV @18%
1
1.18 1.02 0.8475
1.39 1.04 0.7182
1.64 1.05 0.6086
1.94 1.07 0.5158
2.29 1.09 0.4371
5.27

2.68 1.59 0.3858

3.12 2.12 0.3454
3.61 2.68 0.3135
4.14 3.26 0.2887
4.72 3.88 0.2697
13.53

year and taking growth of 10% and payout ratio of 60% and the cost of equity of 14%

equity in stable phase - growth rate in stable growth phase

f equity of 14%