
Millennium-Backed Trader Explores $1 Billion External Cash Raise
London-based Kedalion Capital Management is exploring ways to potentially raise $1 billion after his exclusivity deal with Millennium expires, people familiar with the matter said. Kedalion will open to the new money next year, the people said, asking not to be identified because the details are private. The plan is at an early stage and may change, one of the people added.
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Calculating The Intrinsic Value Of Aristocrat Leisure Limited (ASX:ALL)
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This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. What's The Estimated Valuation? We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Levered FCF (A$, Millions) AU$1.69b AU$1.88b AU$2.11b AU$2.27b AU$2.40b AU$2.52b AU$2.63b AU$2.73b AU$2.84b AU$2.94b Growth Rate Estimate Source Analyst x7 Analyst x7 Analyst x2 Analyst x1 Est @ 5.73% Est @ 4.95% Est @ 4.40% Est @ 4.01% Est @ 3.74% Est @ 3.55% Present Value (A$, Millions) Discounted @ 8.0% AU$1.6k AU$1.6k AU$1.7k AU$1.7k AU$1.6k AU$1.6k AU$1.5k AU$1.5k AU$1.4k AU$1.4k ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = AU$16b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (3.1%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.0%. Terminal Value (TV)= FCF2035 × (1 + g) ÷ (r – g) = AU$2.9b× (1 + 3.1%) ÷ (8.0%– 3.1%) = AU$62b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= AU$62b÷ ( 1 + 8.0%)10= AU$29b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is AU$44b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of AU$70.7, the company appears about fair value at a 1.0% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. 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Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
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