VALUATION FOR

COMPANY ANALYSIS
A P o w e r P o i n t p r e s e n t a ti o n fo c u s i n g o n t h e v a r i o u s
m e t h o d s fo r v a l u a ti o n o f m a t u r e a n d n a s c e n t
Firms
 ABOUT SPA
CAPITAL SERVICES
A brief overview of the
Firm
Mr. Sandeep Parwal is MD & CEO of the firm
Mr.Sourabh Garg a qualified CA and Certified
which he started in 1995 with the aim of
valuation Professional is Senior Vice President in
providing varied financial services including
Debt Department handling Valuation needs of
Mutual Fund Advisory, Securities Broking ,
various Clients through his team consisting of
Merchant Banking, Investment Banking,
Madhur Tyagi,Megha Mittal, Harshit Goyal, Anish
Consulting, Stressed Asset Management
Kumar Jha and Khushboo Tanwar(AVP)
Services to his clients

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MEASURES OF
VALUE
Understanding the
metrics of value
Measurement

 FAIR MARKET VALUE

 INTRINSIC VALUE

 BOOK VALUE

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 METHODS OF VALUATION
The current methods of
valuing assets and firms

 Income Approach
 Asset Approach
 Market Approach

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DCF MODEL FOR VALUATION
One of the highly used model for
Va l u a t i o n

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 TITLE
Cash Flows using Indirect
Contd.
Method
March 31, 2019 Perpetuity Growth
Particulars March 31, 2020 March 31, 2021 March 31, 2022 March 31, 2023 March 31, 2024
(Dec'18 to March'19) @5.00%

PAT 6,500,840.39 2,599,372.27 4,670,814.46 6,963,949.18 7,707,602.26 10,039,879.15 16,677,806.69

Depreciation 3,918,515.00 12,506,209.55 12,179,503.26 11,863,082.97 11,556,644.92 11,259,894.57 1,000,000.00

Capex -578,235.33 -2,500,000.00 -2,500,000.00 -2,500,000.00 -2,500,000.00 -2,500,000.00 -1,000,000.00

Changes in Long-term borrowings -46,178,098.65 -15,847,790.00 -13,440,000.00 -13,440,000.00 -33,040,000.00 -33,040,000.00 -

Changes in Deferred tax liabilities (Net) - 2,800,000.00 1,400,000.00 1,400,000.00 1,400,000.00 1,400,000.00 1,400,000.00

Changes in Long-term provisions -76,770.00 -200,000.00 -200,000.00 -200,000.00 -200,000.00 -200,000.00 -200,000.00

Sustainable growth(g) = (1-dividend payout ratio) * ROE Changes in Non cash working capital -56,255,766.85 2,492,543.99 -38,078.36 -1,614,309.04 11,239,648.63 13,935,434.53 5,000,000.00

Changes in cashflow -92,669,515.44 1,850,335.80 2,072,239.37 2,472,723.10 -3,836,104.18 895,208.25 22,877,806.69

Adjustment Factor -

Adjusted cashflows -92,669,515.44 1,850,335.80 2,072,239.37 2,472,723.10 -3,836,104.18 895,208.25 250,826,965.65

Discounting factor @14.58% 0.955654374 0.834071741 0.727957396 0.635343393 0.554512159 0.483964637 0.483964637

Discounted Cashflows -88,560,027.75 1,543,312.81 1,508,501.97 1,571,028.29 -2,127,166.41 433,249.13 121,391,381.31

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 DCF MODEL FOR FCFE
35,760,279.3
4

VALUATION Add: Cash and cash equivalents as on November 31,

Risk Free rate and 2018 8,728,507.87
other rates for
Add: Other non-current assets as on November 31,
c a l c u l a ti o n 2018 319,781.00
Computation of Cost of equity (Ke)

Add: Tax benefit on depreciation basis Net block as

Capital Asset Pricing Model (CAPM) on March'24 ** 5,107,364.13

Rf 7.83%

Less: PV of Repayment of Long-term borrowings and -44,530,509.0

Interest 5

Beta 0.61

Expected market return 15.61%

Equity Value 5,385,423.29

Company Specific Risk Premium 2%

Ke 14.58%

Growth(g) 5% 19,305,554.7
Dilutive number of shares as on date of valuation 6

Value per share (₹) 0.28

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 ASSET BASED APPROACH
Book Market
value Value
Other assets 546.92 546.92
Current Investment 781.9 781.9
6960.9
non Current investment 1 65479.47
8289.7
3 66808.29

other Liabilities 73.29 73.29

no. of shares Outstanding 11.129

5996.495
per share value 642
Market Value as on 31-03-2019 3418.05

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