ALB DCF Valuation - Corporacion Financiera Alba SA - Alpha Spread

# Corporacion Financiera Alba SA MAD:ALB

Corporacion Financiera Alba SA
Price: 49.85 EUR 1.22%
Market Cap: 3B EUR
Corporacion Financiera Alba SA?

## DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on May 8, 2024.

Estimated DCF Value of one ALB stock is 60.37 EUR. Compared to the current market price of 49.85 EUR, the stock is Undervalued by 17%.

DCF Valuation FAQ:
ALB DCF Value
Base Case
60.37 EUR
Undervaluation 17%
DCF Value
Price
60.37
DCF Value

## 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 958.4m EUR. The present value of the terminal value is 2.7B EUR. The total present value equals 3.6B EUR.
Operating Model
Forecast Period
Years
Discount Rate
%
Terminal Growth
%
DCF Model
Currency: EUR
Millions
Revenue
Net Margin

## 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 3.6B EUR Equity Value 3.6B EUR / Shares Outstanding 60.3m ALB DCF Value 60.37 EUR
Undervalued by 17%

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
3.6B EUR
/
Number of Shares
60.3m
=
DCF Value
60.37 EUR

## 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.

Revenue
384.8m 529m
Net Income
207.6m 266.9m

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## What is the DCF value of one ALB stock?

Estimated DCF Value of one ALB stock is 60.37 EUR. Compared to the current market price of 49.85 EUR, the stock is Undervalued by 17%.

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, Corporacion Financiera Alba SA's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at 3.6B EUR.

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 60.37 EUR per share.

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