DCF Valuation

2019 2020 2021 2022

Free Cash Flow 527,100 42,303,300 35,294,300 15,340,400

Interest Expense 371,800 466,400 464,100 531,000

Total Debt 3,115,000 4,532,500 5,840,200 6,051,700
11.93579454254 10.29012686 7.9466456628 8.774393972

Pretax Income 51,043,000 46,110,800 38,493,200 30,581,100

Tax Expense 16,379,500 9,516,700 9,132,700 7,290,600
Effective Tax Rate 32.08961072037 20.63876576 23.725489177 23.84021503

cost of debt 371.0792059658 202.085391 180.59141001 200.4090451

Risk free rate 4.42 beta 0.69 Market risk 10

3.8502

weighted average
Total Debt 7270000000
Market Cap 4955400000
Total 12225400000
average 59.46635692902
average 40.53364307098

WACC 8.658408510498
Company HEROMOTOCORP
Share Price on Valuation Date: 2,370.95 price
Shares Outstanding 1998400000

Discounted Cash Flows (DCF) Analysis

Most Recent Revenue 3.32B
Most Recent Net Income 2.12B
Most Recent Free Cash Flow 1.53B
Key Assumptions:
Growth rate for next 5 Years 7.00%
Terminal Growth Rate 3%
Discount Rate 10%
1 2
Intrinsic Value
Year 2022 2020 2021
Revenue 3.32B 3.55B 3.80B
Revenue Growth Rate (%) 7.00% 7.00%
Net Income 2.12B 2.26B 2.42B
Net Margin (%) 63.7% 63.7% 63.7%
Cash Flow 1.53B 1.64B 1.76B
Cash Flow Margin (%) 46.2% 46.18% 46.18%

Unlevered Cash Flows 1.53B 1.64B 1.76B

Discount Rate 10% 10%
Discounted Cash Flows 1.49B 1.45B

Sum of present value of cash flows 16.86B

Shares Outstanding 1.998B
Intrinsic Value per Share $8.44 Current Share Price
Margin of Safey Price $6.75
 3 4 5 6 7 8
alue
2022 Terminal Value
4.07B 4.35B
7.00% 7%
2.59B 2.77B
63.7% 63.7%
1.88B 2.01B
46.18% 46.18%

1.88B 26.81B
10% 10%
1.41B 12.51B

t Share Price $2,370.95 Upside Potential -99.64%