| 1.Assets valuation approach : |
| Net Assets method = Total Assets- Total liabilities |
| Net Assets per share = Net Assets / No. of outstanding share |
| Fiat Chrysler Automobiles N.V ( in € million ) | | | | | | 1 euro equals 1.13 United States Dollar as of 02.01.2022 | | | | in $ million |
| Years | 2016 | 2017 | 2018 | 2019 | 2020 | | | | | Years | 2016 | 2017 | 2018 | 2019 | 2020 |
| Total Assests | 104343 | 96299 | 96873 | 98044 | 99730 | | | | | Total Assests | $117,907.59 | $108,817.87 | $109,466.49 | $110,789.72 | $112,694.90 |
| Total Liability | 49469 | 47269 | 71970 | 63369 | 73869 | | | | | Total Liability | $55,899.97 | $53,413.97 | $81,326.10 | $71,606.97 | $83,471.97 |
| No.of outstanding | 1526 | 1556 | 1568 | 1571 | 1572 | | | | | No.of outstanding | $1,724.38 | $1,758.28 | $1,771.84 | $1,775.23 | $1,776.36 |
| 3. Hybrid valuation approach ( estimating the company's intinsic value ) |
| | Home Depot ( as an example ) Fiat can be done same way but for 5 years |
| | Intrinsic Value of a Company |
| Future cash Flow | | | | in million dollars |
| | Year | | | 2018 | 2017 | 2016 | | You will be using the most recent three years 2018,2019 and 2020 |
| | Cash from Operations | | | 13,038 | 12031 | 9783 |
| | Capital Expenditure | | | -2463 | -2275 | -1621 |
| | | | | | | | | Please note you may sometime have negative free cash flows. In that case you will not use |
| | FCF | | | 10,575 | 9756 | 8162 | | this method. This will be a good justification for not selecting this method. Of course you need to |
| | | | | | | | | show calculations. |
| | You can use arbitrary growth rate and justify it |
| | | OR |
| | Compute Compound Annual Growth Rate (CAGR) |
| | CAGR= | (EV/BV)^(1/N)-1 |
| | | 0.0901709251 |
| | Compute Projected FCF using the CAGR |
| | Year | | 1 | 2 | 3 | 4 | 5 |
| | Projected FCF | | 11526.75 | 12564.1575 | 13694.931675 | 14927.47552575 | 16270.9483230675 |
| | PV of Projected FCF |
| | Year | | 1 | 2 | 3 | 4 | 5 | Total |
| | Projected FCF | | 11526.75 | 12564.1575 | 13694.931675 | 14927.47552575 | 16270.9483230675 |
| | Pvf at 10% | | 0.90909 | 0.8264 | 0.75132 | 0.68301 | 0.62092 |
| | PV | | 10478.8531575 | 10383.019758 | 10289.276066061 | 10195.6150588425 | 10102.9572327591 |
| | Toal PV of projected FCF | | | | | | | $ 51,449.72 |
| | Terminal Value = PV of FCf of the year 5 X 10 |
| | (It is subjective. Generally take 10 or 12 times of the project FCF of 5th year) |
| | Terminal Value | | | | | 10102.9572X10 | | 101,029.57 |
| | | Total of PV of projected FCF and Terminal Value | | | | | | 152,479.29 |
| | | Cash and Cash Equivalent | | | | | | 1,778 |
| | | Intrinsic Value of company ( Total PV of Projected FCF+ Terminal Value+Cash and Cash Equivalents) | | | | | | 154,257.29 | 154.2572936008 | Billions |
| | | Inrinsic Value of a share |
| | | | No. outstanding shares 1,103,903,507 | | | 1,104 millions | | 139.725809421 | per share intrinsic value |
| | | | | | | | | Or round it to |
| | | | | | | | | $140 per share |
kmatviychuk
ValuationEstimateforFiat.xlsx
