The business what’s the equity value just a different way of looking at the equity value is the total bunch of value minus the net debt and equity value plus that debt as enterprise value enterprise value minus net is everything right so why we care about equity value nap because we can take the diluted shares outstanding Roget us to apply stock price of the business basic evaluation of people and share count.
which we’ve done right here here’s a canyon and we take the equity value have any values like market cap and we divided by the total shares scarecrow can dollars and twenty-five sets so using these assumptions or something to change we expect to stop to be around not right now – we can analyze again though it was only in our very but i wanna make sure you understand the cats to start doing this to real questions.
on that valued something to keep it at all let’s look at the value based on perpetuity with the opportunity method we first start what is the fee for house valuation in Melbourne with pulling in the cash flow the final projected cash flow which is and we run the permitting formula that you have to memorize based on some growth rate I’m going to use one percent in the book again this is supposed to represent inflation some sort of basic increase of cash which is on standard anywhere between three and four percent that’s way too high for now let’s use one percent and we’re running sensitivities and out of this the terminal value which is just the form of you have to memorize is going Tobe equal to the honor of your cash book times open.
That the company continued to trade an eight point seven times by fear sprout not higher not lower conservative the company’s value at will be worth billion dollars we have to discount that back five years at that value we just got back here sow do equals the terminal value / Ambrose plus that discount rate tithe power billing office that’s the current value of the business current general about.
The business based on the time it will add that to our to wait to get the total value of the idea using the evening .method these are the values of the business will use it would have it ya know look at the formula now let’s see how this specifically comes together let’s just do this Property Valuation Sydney box and here we’ll just help us determine based on each method with the total value is let’s just do it . method go back to the opportunity method so it’s happening for the total of the present value of the cash most that’s the – and the present value of the general valueless to.
when we added to get the total and surprise value which is one more point on this number will match the book yet because in thereabout have the accurate back we didn’t adjust the wet yet we’re going to do our own black activation of time for that today that’s the enterprise by the business it’s the sum of the present value of the first five years of cash flows plus the terminal value that’s the enterprise tonight based on our evaluation value of the business based on knowledge will be taking the enterprise value we subtract the net debt and that damn we already calculated on the right so we have this equal to him than that dead here so I’m gonna based on our total value