FCF = Cash from Operating Activities – Capital Expenditures

FCF for the last 3 financial years for ARBL

2011-12 2012-13 2013-14
Cash from Operating Activities (after income tax) 296.28 335.46 278.7
Capital Expenditures 86.58 72.47 330.3
Free Cash Flows 209.7 262.99 -51.6
Forecating Period 1 2
Average FCF 140.36 165.63 230.62
Growth in FCF 18% 18%
Discount Rate/WACC/Cost of Equity 9%
PV of FCF @9% 151.95 230.62
Terminal Growth Rste 5.00%
Terminal Value 4347.7543
Present value of terminal Value 1836.5384
Value of Firm 612346.63
CY Total Debt (FY-2014) 75.94
Cash and Cash Balance (FY -2014) 294.5 1. If the stock price
Net Debt -218.56 2. If the stock price is
VOE 612128.07 3. If the stock pr
Total Number of Share 17.081
Intrinsic Value 34.434248
Lower IV
Uper IV
Expenditures

3 4 5 6 7 8 9 10
378.92 734.64 1680.68 3887.50 10340.84 31632.86 111280.48 450191.61
18% 18% 18% 15% 15% 15% 15% 15%

378.92 734.64 1680.68 3887.50 10340.84 31632.86 111280.48 450191.61

1. If the stock price is below the lower intrinsic value band, we consider the stock to be undervalued. Hence one should look at b
2. If the stock price is within the intrinsic value band, then the stock is considered fairly valued. While no fresh buy is advisable, on
3. If the stock price is above the higher intrinsic value band, the stock is considered overvalued. The investor can either book p
 d. Hence one should look at buying the stock.
e no fresh buy is advisable, one can continue to hold on to the stock if not adding more to the existing positions.
The investor can either book profits at these levels or continue to stay put. But should certainly not buy at these levels.
ese levels.