DCF Studio

    PST.MI · MIL · Industrials

    Poste Italiane S.p.A.

    Also onConsensus Drift

    Implied value per share

    EUR 72.99

    Market price

    EUR 26.89

    Implied upside

    +171.4%

    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 1.1x sits outside a defensible 3-20x band, so the exit multiple is capped at 3.0x. A multiple that far out usually means EBITDA is the wrong denominator for this business.

    Value Per Share

    Perpetuity growth
    EUR 72.99+171.4%
    Exit multiple
    EUR 51.25+90.6%
    Market price
    EUR 26.89

    Same forecast, different terminal treatment. Percentages vs price.

    Forecast Cashflows

    Reporting currency (EUR). Outflows negative.

    0bn3bn6bnFY26FY27FY28FY29FY30
    Nominal FCFFDiscounted to todayEUR
    LineFY26FY27FY28FY29FY30CAGR
    RevenueEUR 25.2bnEUR 27.3bnEUR 29.6bnEUR 32.1bnEUR 34.7bn+8.4%
    EBITEUR 3.8bnEUR 4.1bnEUR 4.4bnEUR 4.8bnEUR 5.2bn+8.4%
    NOPATEUR 2.8bnEUR 3.1bnEUR 3.3bnEUR 3.6bnEUR 3.9bn+8.4%
    Add depreciation & amortisationEUR 1.1bnEUR 1.2bnEUR 1.3bnEUR 1.4bnEUR 1.5bn+8.4%
    Less capital expenditureEUR -1.1bnEUR -1.2bnEUR -1.3bnEUR -1.4bnEUR -1.6bn+8.4%
    Less increase in working capitalEUR 1.9bnEUR 2.1bnEUR 2.2bnEUR 2.4bnEUR 2.6bn-8.4%
    Free cashflow to firmEUR 4.7bnEUR 5.1bnEUR 5.5bnEUR 6.0bnEUR 6.5bn+8.4%
    Discount factor0.96150.88890.82170.75960.7023-
    Present valueEUR 4.5bnEUR 4.5bnEUR 4.5bnEUR 4.5bnEUR 4.5bn+0.2%
    Present Value Of The ForecastEUR 22.7bn

    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
    Beta0.845Reported 0.769, pulled toward 1.0 (Blume)
    Cost of equity9.69%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 34.7bn76.7% of capital
    Total debtEUR 10.5bn23.3% of capital, book value as a proxy
    Tax rate25.0%Effective, capped at statutory
    WACC8.17%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 72.99

    65% of EV

    Forecast FCFF, final year
    EUR 6.5bn
    Capex at depreciation, working capital in reinvestment
    EUR 4.3bn
    Less reinvestment at g/ROIC (22.0% of NOPAT)
    EUR -937.1m
    Capitalised
    EUR 3.3bn
    ROIC (reported)
    11.4%
    Terminal value, undiscounted
    EUR 60.2bn
    Terminal value, discounted
    EUR 42.3bn
    Enterprise value
    EUR 64.9bn
    Less net debt
    EUR -29.6bn
    Equity value
    EUR 94.5bn

    Exit at 3.0x EBITDA

    Value per shareEUR 51.25

    38% of EV

    Terminal value, undiscounted
    EUR 20.1bn
    Terminal value, discounted
    EUR 14.1bn
    Enterprise value
    EUR 36.8bn
    Less net debt
    EUR -29.6bn
    Equity value
    EUR 66.4bn

    Spread between methods: 35%.

    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%
    6.17%88.6891.9396.04101.41108.75
    7.17%78.2680.0082.0984.6587.88
    8.17%70.9271.8872.9974.3075.86
    9.17%65.4665.9866.5767.2468.01
    10.17%61.2261.4961.7962.1162.46

    Outlined: this model. Green text: above today's price of 26.89. 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 year8.4%-17.5%-25.8pp
    EBIT margin15.0%-4.1%-19.1pp
    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.