Regional Express Holdings Limited, together with its subsidiaries, engages in the air transportation of passengers and freight in Australia. More info.
The calculations below outline how an intrinsic value for
Regional Express Holdings
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (AUD, Millions)||A$3.13||A$3.18||A$3.22||A$3.27||A$3.32|
|Source||Extrapolated @ (1.45%)||Extrapolated @ (1.45%)||Extrapolated @ (1.45%)||Extrapolated @ (1.45%)||Extrapolated @ (1.45%)|
Discounted (@ 8.55%)
Present value of next 5 years cash flows:
Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = A$3 × (1 + 2.76%) ÷ (8.55% – 2.76%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
A$52 = A$13 + A$39
Value = Total value / Shares Outstanding (A$52 / 107)Discount to Share Price
Value per share:
Current discount (share price of A$1.67): -245.65%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 8.55% = 2.76% + (0.8 * 7.24%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value (A$178,802,573).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.41 = 0.375 (1 + (1- 30%) (13.21%))
Levered Beta used in calculation = 0.8
Purchase Regional Express Holdings on or before the 'Buy Limit' to receive their next dividend payment.
Average tenure of the Regional Express Holdings management team in years:
Average tenure and age of the Regional Express Holdings board of directors in years:
Regional Express Holdings Limited, together with its subsidiaries, engages in the air transportation of passengers and freight in Australia. The company operates through Regular Public Transport and Charter segments. It provides defense and government related aviation support services; aero-medical services for ambulance Victoria; fly in/fly out charter services; express freight services; and air tours charter services. The company also offers training programs to students and other airlines. As of September 22, 2017, it operated a fleet of approximately 50 Saab 340 aircraft to 59 destinations in Australia. The company was formerly known as Australiawide Airlines Limited. Regional Express Holdings Limited is based in Mascot, Australia.
|Name:||Regional Express Holdings Limited|
Regional Express Holdings Limited
81-83 Baxter Road,
New South Wales, 2020,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|ASX||REX||Ordinary Shares||Australian Securities Exchange||AU||AUD||09. Nov 2005|
|CHIA||REX||Ordinary Shares||Chi-X Australia||AU||AUD||09. Nov 2005|