Science Group plc, a technology consulting company, together with its subsidiaries, provides outsourced research and development consultancy services in the United Kingdom, other European countries, North America, and internationally. More info.
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The calculations below outline how an intrinsic value for
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 (GBP, Millions)||£4.84||£5.29||£5.77||£6.30||£6.88|
|Source||Extrapolated @ (9.16%)||Extrapolated @ (9.16%)||Extrapolated @ (9.16%)||Extrapolated @ (9.16%)||Extrapolated @ (9.16%)|
Discounted (@ 8.3%)
Present value of next 5 years cash flows:
Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = £7 × (1 + 1.49%) ÷ (8.3% – 1.49%)
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 +
£92 = £23 + £69
Value = Total value / Shares Outstanding (£92 / 39)Discount to Share Price
Value per share:
Current discount (share price of £2.16): 7.13%
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 = 8.3% = 1.49% + (0.8 * 8.51%)
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 (£85,426,667).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.441 = 0.389 (1 + (1- 19%) (16.59%))
Levered Beta used in calculation = 0.8
Average tenure of the Science Group management team in years:
Average tenure and age of the Science Group board of directors in years:
Science Group plc, a technology consulting company, together with its subsidiaries, provides outsourced research and development consultancy services in the United Kingdom, other European countries, North America, and internationally. It offers outsourced research, development, and technology advisory services; and IT consultancy services. The company was formerly known as Sagentia Group plc and changed its name to Science Group plc in July 2015. Science Group plc was incorporated in 2008 and is based in Cambridge, the United Kingdom.
|Name:||Science Group plc|
Science Group plc
Cambridgeshire, CB22 7GG,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|AIM||SAG||Ordinary Shares||London Stock Exchange AIM Market||GB||GBP||08. Jul 2008|
|Industry:||Research and Consulting Services|