Intrinsic valuation for SABIC's stock

Calculating growth rate

annual g ( Q g (AVG) 3rd Q 20122nd 2012 1st 2012 4th 2011
EPS 2.1 1.77 2.42 1.75
g, EPS (A) 0.186923 0.046730666 0.186441 -0.2686 0.382857 -0.35897
Sales
g, sales (B)

ROE=(.1782+.2119+.1677)/3=18
RR= (8.39-4.5)/8.39=0.46
g = ROE x RR = .0828 (C) 0.0828
Average of two,(A+C)/2
GROWTH (rounded) 0.14
Cost of equity:
Average ROE for the past 3 years 0.18

Cost of Capital Calculations: weight

Debt (book value) 97263 0.2224598368
Minoroty interest (book value) 48953 0.1119652529
Equity (market value) 291000 0.6655749103
Total 437216
*Costs of debt and minority interest were obtained by dividing interests on total debt (minoroty interests)outstanding.
Wacc (rounded) 0.13
FCFF: 2012
NI 24780
plus Dep 13413
minus Cap exp. -10860
minus change in NWC -11393
minus other assets -1440
FCFF 14500
Growth of 14 percent will go for 10 years and then it will level off to 10 percent for another 10 years and then will go to 6 perce
Year growth FCff WACC Present value
0 14500
1 1.14 16530 1.13 14628.318584
2 1.14 18844.2 1.13 14757.772731
3 1.14 21482.39 1.13 14888.37249
4 1.14 24489.92 1.13 15020.127998
5 1.14 27918.51 1.13 15153.049485
6 1.14 31827.1 1.13 15287.147268
7 1.14 36282.9 1.13 15422.431757
8 1.14 41362.5 1.13 15558.913454
9 1.14 47153.25 1.13 15696.602954
 10 1.14 53754.71 1.13 15835.510944
11 1.1 59130.18 1.13 15415.099149
12 1.1 65043.2 1.13 15005.84873
13 1.1 71547.52 1.13 14607.463365
14 1.1 78702.27 1.13 14219.654603
15 1.1 86572.5 1.13 13842.141649
16 1.1 95229.75 1.13 13474.651163
17 1.1 104752.7 1.13 13116.917061
18 1.1 115228 1.13 12768.680325
19 1.1 126750.8 1.13 12429.688812
20 1.1 139425.9 1.13 12099.697074
20 1.06 2111306 1.13 183223.98426
Present value to the firm 472452.07385
Deb and minority interest -146216
Present value to the equity 326236.07385

equity Fair Value per share 108.7454

equity market price per share 97
 3rd 20111 2nd 2011 1st 2011 4th 2010
2.73 2.7 2.56 1.94
0.011111 0.054688 0.319588

Weight interest % Cost

0.22246 592 0.006087 0.001354
0.111965 3078 0.062877 0.00704
0.665575 0.18 0.119803
0.128198 WACC
rests)outstanding.

and then will go to 6 percent forever.