Value - what value?, page-104

Hi Stefan,

That was a very quick model ... don't really subscribe to that method for COE and rely much more on my Residual Earnings method which I have shared before

Presume you mean this?


t is the time period
Discount rate is Low = 12% and High = 10%
Zero Interest adjustment

FY'23 is t=2
FCF = $102.1
For the "Low FCF" discount by 2 time periods at low rate of 12%
= (102.1) / [(1.12)*(1.12)]
= (102.1) / (1.2544)
= $81.4

For the "High FCF" discount by 2 time periods at low rate of 10%
= (102.1) / [(1.1)*(1.1)]
= (102.1) / (1.21)
= $84.4

What are you doing differently?