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LFC is valued at $350

 
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juelly



Joined: 17 Nov 2007
Posts: 3
PostPosted: Mon Jan 21, 2008 1:55 pm    Post subject: LFC is valued at $350 Reply with quote
Based on LFC's free cash flow of 6.35B and a conservative growth rate
of 28.1% per year for the next 5 year and 4% after the 5th year. I
arrived at a target price of US$350.
The discounted rate based on the cost of capital is 0.6658785. Even at
conservative level, assuming 4% growth, it's value worths at least US
$173.89. It's current price of 96 is still a great bargain. Did I
missing something in my calculation? Any comments is welcomed on my
valuation based on discounted cash flow. Thanks in advance
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