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

Thesumofthepresentvalueoffreecashflowstoequityover
thehigh-growthperiodis2,239.49billionyen.To estimate
theterminalvalue,wefirst estimatethefreecashflowsto
equity in year 6.

Expected net income in year 6 = Net income 5 (1 + g) =
1,893.91(1.02) = 1,931.79 billion yen

Thevalueoftheequityintheoperatingassetscanbeobtained
byaddingthepresentvalueofthefreecashflowstoequityin
thehigh-growthperiodtothepresentvalueoftheterminal
valueofequity.Addingcashandmarketablesecuritiestothis
valueanddividingbythenumberofsharesyieldsthevalueof
equity per share:

Valueofequityinoperatingassets=2,239+

19,088

21,327 billion

yen