Damodaran on Valuation_ Security Analysis for Investment and Corporate Finance ( PDFDrive )

High-Growth

Phase

Stable-Growth

Phase

Expected growth

rate

5.49% 3.41%

Cost of capital

Inputs

Beta 0.93 1.00

Cost of debt 4.17% 3.91%

Debt ratio 17.60% 17.60%

Cost of capital 6.78% 6.57%

General information

Tax Rate 25.47% 33.00%

InIllustration6.2, weestimatedthevalue oftheoperating
assets with theseinputs to be 2,897.42 millioneuros. The
followingtable reproducestheestimatesof cashflowsand
terminal value (money amounts in millions of euros):

Inthenexttable,weestimatetheEVAforTitanCementeach
yearforthenextfiveyears,andthepresentvalueoftheEVA.
Tomaketheseestimates,webeginwith thecurrentcapital
invested in the firm of 946.9 million euros and add the
reinvestmenteachyeartoobtainthecapitalinvestedinthe
following year (money amounts in millions of euros).