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Pacific Online Ltd
HKEX:543

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Pacific Online Ltd
HKEX:543
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Price: 0.415 HKD -7.78% Market Closed
Updated: Apr 25, 2024

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Apr 24, 2024.

Estimated DCF Value of one 543 stock is 0.994 HKD. Compared to the current market price of 0.415 HKD, the stock is Undervalued by 58%.

DCF Value
Base Case
0.994 HKD
Undervaluation 58%
DCF Value
Price
P
Worst Case
Base Case
Best Case
0.994
DCF Value
Worst Case
Base Case
Best Case
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DCF Value: 0.994 HKD

Present Value Calculation

This block is the starting point of the DCF valuation process. It calculates the present value of a company's forecasted cash flows based on selected operating model. Adjust key parameters like discount rate and terminal growth, and alter inputs such as revenue growth and margins to see their impact on valuation.

DCF Model
Base Case Scenario

The present value of cash flows over the next 5 years amounts to 285.3m CNY. The present value of the terminal value is 757.4m CNY. The total present value equals 1B CNY.
Forecast Period
Years
Discount Rate
%
Show All DCF Settings
Terminal Growth
%
Hide DCF Settings
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DCF Value Calculation

This stage translates the present value into DCF value per share. For firm valuation models, it adjusts present value for debt and assets to derive equity value (skipped if using equity valuation model). Finally, this equity value is divided by the number of shares to determine the DCF value per share.

Present Value to DCF Value
Capital Structure

Present Value 1B CNY
Equity Value 1B CNY
/ Shares Outstanding 1.1B
Value per Share 0.919 CNY
CNY / HKD Exchange Rate 1.0808
543 DCF Value 0.994 HKD
Undervalued by 58%

You are using the equity valuation model. In this approach, further calculations for converting firm value to equity value are not required. The present value, obtained in the present value calculation block, already represents the equity value.

The DCF value per share is derived by dividing the present value by the number of shares:

Present Value
1B HKD
/
Number of Shares
1.1B
=
DCF Value
0.994 HKD

Valuation Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Sensitivity Analysis assesses how changes in key factors like revenue growth, margin, and discount rate affect a stock's DCF value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts, aiding in risk assessment and strategic decision-making.

DCF Financials
Financials used in DCF Calculation

Revenue
890.3m 936.1m
Net Income
66.6m 72.5m

See Also

Discover More

What is the DCF value of one 543 stock?

Estimated DCF Value of one 543 stock is 0.994 HKD. Compared to the current market price of 0.415 HKD, the stock is Undervalued by 58%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Utilizing the DCF operating model, Pacific Online Ltd's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at 1B CNY.

2. DCF Value Calculation. The company's capital structure is employed to derive the total Equity Value from the previously calculated Present Value of the cash flow. This Equity Value, when divided by the total number of outstanding shares, yields the DCF Value of 0.994 HKD per share.

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