You need to use full year Free cash flow, not half year cash flow. ($71.5m). Your discount rate is tiny. It should be much higher - towards 10% You need to have a terminal value to account for the value of the company once the cashflows are discounted to 0. You need to adjust for the one-off inventory reduction and associated working capital movement bumping up the latest figure. The other bump was due to a big reduction in capex. That surely also has an impact on business sustainability. I get an NPV of $407m. (quick calculation) You then should (discretionary) discount it due to the issues the company is facing (debt covenants, trends, impairments etc). Are you really going to attach value to cashflows 10-20 years in the future? These account for ~50% of the NPV.
MYR Price at posting:
14.0¢ Sentiment: Sell Disclosure: Not Held
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