DCF Studio

    COL.MC · MCE · Real Estate

    Colonial SFL, Socimi S. A.

    Also onConsensus Drift

    Implied value per share

    EUR -0.80

    Market price

    EUR 5.08

    Implied upside

    -115.8%

    5-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case

    NoteRisk-free rate is an assumption: USD assumption - no free live source available for this market.

    Current EV/EBITDA of 25.1x sits outside a defensible 3-20x band, so the exit multiple is capped at 20.0x. A multiple that far out usually means EBITDA is the wrong denominator for this business.

    Value Per Share

    Perpetuity growth
    EUR -0.80-115.8%
    Exit multiple
    EUR 3.01-40.8%
    Market price
    EUR 5.08

    Same forecast, different terminal treatment. Percentages vs price.

    Forecast Cashflows

    Reporting currency (EUR). Outflows negative.

    0m141m282mFY26FY27FY28FY29FY30
    Nominal FCFFDiscounted to todayEUR
    LineFY26FY27FY28FY29FY30CAGR
    RevenueEUR 425.3mEUR 442.9mEUR 461.2mEUR 480.3mEUR 500.2m+4.1%
    EBITEUR 313.2mEUR 326.1mEUR 339.6mEUR 353.7mEUR 368.3m+4.1%
    NOPATEUR 234.9mEUR 244.6mEUR 254.7mEUR 265.3mEUR 276.2m+4.1%
    Add depreciation & amortisationEUR 8.2mEUR 8.6mEUR 8.9mEUR 9.3mEUR 9.7m+4.1%
    Less capital expenditureEUR -6.7mEUR -7.0mEUR -7.2mEUR -7.5mEUR -7.9m+4.1%
    Less increase in working capitalEUR 3.2mEUR 3.3mEUR 3.5mEUR 3.6mEUR 3.8m-4.1%
    Free cashflow to firmEUR 239.6mEUR 249.5mEUR 259.9mEUR 270.6mEUR 281.8m+4.1%
    Discount factor0.96940.91090.85600.80430.7558-
    Present valueEUR 232.3mEUR 227.3mEUR 222.4mEUR 217.7mEUR 213.0m-2.1%
    Present Value Of The ForecastEUR 1.1bn

    Discount Rate

    Source shown per component. All overridable above.

    Risk-free rate4.20%USD assumption - no free live source available for this market (assumption)
    Equity risk premium6.50%Market assumption
    Beta1.151Reported 1.226, pulled toward 1.0 (Blume)
    Cost of equity11.68%Risk-free + beta x equity risk premium
    Cost of debt4.20%Floored at the risk-free rate (implied cost of debt was lower)
    Market capitalisationEUR 3.2bn38.3% of capital
    Total debtEUR 5.1bn61.7% of capital, book value as a proxy
    Tax rate25.0%Effective, capped at statutory
    WACC6.42%E/V x Re + D/V x Rd x (1 - t)

    Terminal Value

    Perpetuity growth is intrinsic. The exit multiple defaults to the company's current EV/EBITDA, so it answers a different question - what the shares are worth if today's rating holds and EBITDA grows as forecast.

    Perpetuity growth at 2.50%

    Value per shareEUR -0.80

    75% of EV

    Forecast FCFF, final year
    EUR 281.8m
    Capex at depreciation, working capital in reinvestment
    EUR 279.0m
    Less reinvestment at g/ROIC (38.9% of NOPAT)
    EUR -108.7m
    Capitalised
    EUR 170.4m
    ROIC (WACC floor)
    6.4%
    Terminal value, undiscounted
    EUR 4.5bn
    Terminal value, discounted
    EUR 3.4bn
    Enterprise value
    EUR 4.5bn
    Less net debt
    EUR 5.0bn
    Equity value
    EUR -494.0m

    Exit at 20.0x EBITDA

    Value per shareEUR 3.01

    84% of EV

    Terminal value, undiscounted
    EUR 7.6bn
    Terminal value, discounted
    EUR 5.7bn
    Enterprise value
    EUR 6.8bn
    Less net debt
    EUR 5.0bn
    Equity value
    EUR 1.9bn

    Sensitivity

    Value per share (EUR) by discount rate and long-run growth.

    Long-run growth
    Discount rate1.50%2.00%2.50%3.00%3.50%
    4.42%2.382.432.472.512.55
    5.42%0.460.500.530.560.60
    6.42%-0.86-0.83-0.80-0.78-0.75
    7.42%-1.82-1.80-1.78-1.75-1.73
    8.42%-2.56-2.54-2.52-2.50-2.48

    Outlined: this model. Green text: above today's price of 5.08. Shading: distance from this model's own value.

    Priced In

    What each input would have to be to justify the current price, one at a time.

    InputModelImpliedGap
    Revenue growth, every year4.1%18.4%+14.2pp
    Discount rate6.4%3.5%-2.9pp
    Download as Excel

    Live formulas, not pasted numbers - edit a driver and the workbook reprices.

    Yahoo Finance and RBA data. General information, not advice. Methodology.