Description
This corporate finance report discusses the valuation of Airtel in terms of ratios, ROC
Company Name
(All amounts in Rs. '000) Cash Sundry debtors Inventories Short term investments Working capital (Net current assets) Non cash working capital Gross block Acc Depreciation Net block Work In progress Total Capital Sales EBITDA Depreciation EBIT (Operating Income) tax due Capital expenditure Change in Non cash working capital Effective tax rate Marginal tax rate (t) EBIT(1-t) FCFF Terminal Value
2005 4,098,042.00 7,414,710.00 544,835.00 10,819,812.00 -22,068,683.00 -26,166,725.00 140,627,322.00 36,802,292.00 103,825,030.00 10,166,556.00 105,141,882.00
2006 3,510,627.00 11,140,089.00 381,320.00 15,089,432.00 -40,718,046.00 -44,228,673.00 190,488,165.00 52,302,210.00 138,185,955.00 24,364,837.00 124,391,690.00 116,640,853.00 41,635,732.00 14,819,199.00 26,816,533.00 2,908,858.00 64,059,124.00 -18,061,948.00 0.11 18,771,573.10 -12,406,403.90
2007 8,520,899.00 13,819,247.00 912,142.00 22,150,254.00 -59,172,489.00 -67,693,388.00 281,199,178.00 76,155,422.00 205,043,756.00 24,708,823.00 172,078,140.00 184,202,022.00 74,406,585.00 24,486,591.00 49,919,994.00 6,047,016.00 91,054,999.00 -23,464,715.00 0.12 34,943,995.80 -8,159,697.20
30,657,986.00 10,441,487.00 20,216,499.00 3,594,814.00 -12,345,819.00 0.18 30% 14,151,549.30 36,938,855.30 1,130,740,119.44
PV(FCFF) 548,488,334.73 Less Value of Debt as on 2009 135,171,469.00 PV(FCFE) 413,316,865.73 No of outstanding shares as on 31 March 2009 1,898,239,796 Intrinsic Value of share (in Rupees) 217.74 Market Value of share as on 30 Nov 2009 (in Rupees) 299.95 Total debt Interest ROC reinvestment rate (b) growth Average growth (g) avg reinvestment rate Gross block growth Average growth of gross block 50,006,002.00 2,439,179.00 13.46% 47,728,348.00 2,244,107.00 15.09% 166.09% 25.06% 26.65% 155.54% 35.46% 43.05% 52,858,889.00 2,488,475.00 20.31% 123.35% 25.05%
47.62%
Average non cash working capital growth of WIP Average growth of WIP Depreciation rate Average depreciation YOY Debt ratio
0.33*sales 139.66% 50.40% 9.69% 1.41% 10.67%
9.14% 9.75% 2005 47.56% 6.90% 8% 0.906705 14.15% 9.64% 12.37%
2006 38.37%
2007 30.72%
Rf Rm-Rf Beta Ke Kd Kc
Bharti Airtel
2008 7,034,067.00 28,398,245.00 1,142,295.00 27,486,641.00 -83,160,493.00 -90,194,560.00 423,224,108.00 97,729,655.00 325,494,453.00 35,699,610.00 326,132,679.00 270,122,416.00 114,017,863.00 34,714,180.00 79,303,683.00 10,808,288.00 153,015,717.00 -22,501,172.00 0.14 55,512,578.10 -40,287,786.90
2009 27,659,715.00 28,997,771.00 962,676.00 60,534,722.00 -65,958,061.00 -93,617,776.00 586,616,050.00 147,129,637.00 439,486,413.00 41,436,526.00 438,748,253.00 373,520,810.00 152,858,267.00 46,727,692.00 106,130,575.00 9,353,297.00 169,128,858.00 -3,423,216.00 0.09 74,291,402.50 -44,686,547.50
2010 35,031,410.26
2011 44,367,763.91
2012 52,353,961.41
-157,689,751.28 839,139,101.85 208,594,091.32 62,322,580.94
-199,716,243.32 1,090,880,832.40 286,959,021.06 93,736,238.76
-235,665,167.12 1,309,056,998.88 377,742,019.93 131,230,734.26
473,069,253.84 61,464,454.32
599,148,729.96 78,364,929.74
706,995,501.35 90,782,998.87
273,409,106.78 -64,071,975.28
283,155,388.38 -42,026,492.04
255,670,661.98 -35,948,923.80
94,091,085.17 -53,781,592.02
119,167,656.16 -43,596,310.43
140,617,834.27 11,679,094.95
96,017,468.00 5,278,690.00 17.02% 172.57% 29.37%
135,171,469.00 18,612,828.00 16.93% 160.15% 27.12%
50.51%
38.61%
44.48% 9.64%
16.07% 9.61%
2008 29.44%
2009 30.81%
2013 60,207,055.62
2014 68,636,043.41
-271,014,942.18 1,505,415,548.72 477,902,265.73 174,536,876.57
-308,957,034.09 1,731,227,881.02 589,222,961.39 221,661,833.24
813,044,826.55 100,160,245.80
926,871,102.27 111,320,695.66
239,664,692.14 -35,349,775.07
272,937,288.98 -37,942,091.91
161,710,509.41 57,555,838.14
184,349,980.73 60,675,479.31
doc_796440613.xlsx
This corporate finance report discusses the valuation of Airtel in terms of ratios, ROC
Company Name
(All amounts in Rs. '000) Cash Sundry debtors Inventories Short term investments Working capital (Net current assets) Non cash working capital Gross block Acc Depreciation Net block Work In progress Total Capital Sales EBITDA Depreciation EBIT (Operating Income) tax due Capital expenditure Change in Non cash working capital Effective tax rate Marginal tax rate (t) EBIT(1-t) FCFF Terminal Value
2005 4,098,042.00 7,414,710.00 544,835.00 10,819,812.00 -22,068,683.00 -26,166,725.00 140,627,322.00 36,802,292.00 103,825,030.00 10,166,556.00 105,141,882.00
2006 3,510,627.00 11,140,089.00 381,320.00 15,089,432.00 -40,718,046.00 -44,228,673.00 190,488,165.00 52,302,210.00 138,185,955.00 24,364,837.00 124,391,690.00 116,640,853.00 41,635,732.00 14,819,199.00 26,816,533.00 2,908,858.00 64,059,124.00 -18,061,948.00 0.11 18,771,573.10 -12,406,403.90
2007 8,520,899.00 13,819,247.00 912,142.00 22,150,254.00 -59,172,489.00 -67,693,388.00 281,199,178.00 76,155,422.00 205,043,756.00 24,708,823.00 172,078,140.00 184,202,022.00 74,406,585.00 24,486,591.00 49,919,994.00 6,047,016.00 91,054,999.00 -23,464,715.00 0.12 34,943,995.80 -8,159,697.20
30,657,986.00 10,441,487.00 20,216,499.00 3,594,814.00 -12,345,819.00 0.18 30% 14,151,549.30 36,938,855.30 1,130,740,119.44
PV(FCFF) 548,488,334.73 Less Value of Debt as on 2009 135,171,469.00 PV(FCFE) 413,316,865.73 No of outstanding shares as on 31 March 2009 1,898,239,796 Intrinsic Value of share (in Rupees) 217.74 Market Value of share as on 30 Nov 2009 (in Rupees) 299.95 Total debt Interest ROC reinvestment rate (b) growth Average growth (g) avg reinvestment rate Gross block growth Average growth of gross block 50,006,002.00 2,439,179.00 13.46% 47,728,348.00 2,244,107.00 15.09% 166.09% 25.06% 26.65% 155.54% 35.46% 43.05% 52,858,889.00 2,488,475.00 20.31% 123.35% 25.05%
47.62%
Average non cash working capital growth of WIP Average growth of WIP Depreciation rate Average depreciation YOY Debt ratio
0.33*sales 139.66% 50.40% 9.69% 1.41% 10.67%
9.14% 9.75% 2005 47.56% 6.90% 8% 0.906705 14.15% 9.64% 12.37%
2006 38.37%
2007 30.72%
Rf Rm-Rf Beta Ke Kd Kc
Bharti Airtel
2008 7,034,067.00 28,398,245.00 1,142,295.00 27,486,641.00 -83,160,493.00 -90,194,560.00 423,224,108.00 97,729,655.00 325,494,453.00 35,699,610.00 326,132,679.00 270,122,416.00 114,017,863.00 34,714,180.00 79,303,683.00 10,808,288.00 153,015,717.00 -22,501,172.00 0.14 55,512,578.10 -40,287,786.90
2009 27,659,715.00 28,997,771.00 962,676.00 60,534,722.00 -65,958,061.00 -93,617,776.00 586,616,050.00 147,129,637.00 439,486,413.00 41,436,526.00 438,748,253.00 373,520,810.00 152,858,267.00 46,727,692.00 106,130,575.00 9,353,297.00 169,128,858.00 -3,423,216.00 0.09 74,291,402.50 -44,686,547.50
2010 35,031,410.26
2011 44,367,763.91
2012 52,353,961.41
-157,689,751.28 839,139,101.85 208,594,091.32 62,322,580.94
-199,716,243.32 1,090,880,832.40 286,959,021.06 93,736,238.76
-235,665,167.12 1,309,056,998.88 377,742,019.93 131,230,734.26
473,069,253.84 61,464,454.32
599,148,729.96 78,364,929.74
706,995,501.35 90,782,998.87
273,409,106.78 -64,071,975.28
283,155,388.38 -42,026,492.04
255,670,661.98 -35,948,923.80
94,091,085.17 -53,781,592.02
119,167,656.16 -43,596,310.43
140,617,834.27 11,679,094.95
96,017,468.00 5,278,690.00 17.02% 172.57% 29.37%
135,171,469.00 18,612,828.00 16.93% 160.15% 27.12%
50.51%
38.61%
44.48% 9.64%
16.07% 9.61%
2008 29.44%
2009 30.81%
2013 60,207,055.62
2014 68,636,043.41
-271,014,942.18 1,505,415,548.72 477,902,265.73 174,536,876.57
-308,957,034.09 1,731,227,881.02 589,222,961.39 221,661,833.24
813,044,826.55 100,160,245.80
926,871,102.27 111,320,695.66
239,664,692.14 -35,349,775.07
272,937,288.98 -37,942,091.91
161,710,509.41 57,555,838.14
184,349,980.73 60,675,479.31
doc_796440613.xlsx