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 (EUR, Millions)||€1,550.37||€1,781.75||€2,135.67||€2,380.04||€2,652.38|
|Source||Analyst x13||Analyst x13||Analyst x3||Extrapolated @ (11.44%)||Extrapolated @ (11.44%)|
Discounted (@ 8.3%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = €2,652 × (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 +
€34,685 = €8,143 + €26,542
Value = Total value / Shares Outstanding (€34,685 / 837)Discount to Share Price
Value per share (EUR): €41.45Exchange rate EUR/GBP = 0.881
Value per share (GBP): £36.51
Current discount (share price of £26.24): 28.12%
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 (€24,931,331,954).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.751 = 0.616 (1 + (1- 35%) (33.71%))
Levered Beta used in calculation = 0.8
If the companies market cap is in a different currency to that of the listing the equivalent number of shares outstanding must be calculated.
Market Cap (EUR): €24,931,331,954Exchange rate EUR/GBP = 1.135
Market Cap (GBP): £21,957,282,068
Equivalent shares outstanding: £21,957,282,068 / £26.240000 = £837
Mr. Albert Jude Manifold, FCPA, MBA, MBS, has been Chief Executive Officer at CRH Plc since January 01, 2014. Mr. Manifold has been an Executive Director of CRH Plc since January 01, 2009. He served as Managing Director of CRH Europe Holding B.V. since 2007. He served as the Chief Operating Officer of CRH Plc from January 01, 2009 to December 31, 2013 and Group Development Director since 2005. He joined CRH in 1998. While at CRH, he has held a variety of senior positions, including Finance Director of the Europe Materials Division and Managing Director of Europe Materials. Prior to joining CRH, he was Chief Operating Officer with a private equity group. He served as a Director of Secil - Companhia Geral de Cal e Cimento, S.A. He holds FCPA, MBA and MBS.
Average tenure and age of the CRH management team in years:
Average tenure and age of the CRH board of directors in years:
CRH plc, through its subsidiaries, manufactures and distributes building materials. The company operates through seven segments: Europe Heavyside, Europe Lightside, Europe Distribution, Americas Materials, Americas Products, Americas Distribution, and Asia. The company manufactures and supplies cement, aggregates, ready-mixed and precast concrete, concrete landscaping, and asphalt products; and construction accessories, shutters and awnings, and fencing and composite access chambers. It also produces and sells concrete masonry and hardscapes, packaged lawn and garden products, packaged cement mixes, construction accessories, and glass and aluminum glazing systems, as well as fencing, utility, drainage, and structural precast products; and provides asphalt paving services. In addition, the company is involved in supplying exterior products, such as roofing and siding, as well as interior products comprising gypsum wallboard, metal studs, and acoustical ceiling systems; and selling a range of bricks, cement, sanitary, heating, plumbing, and other building products through its do-it-yourself stores to the general public and small and medium-sized builders to the general public and small and medium-sized builders. It operates primarily in Western Europe and North America, as well as in Eastern Europe, South America, the Philippines, China, and India. CRH plc was founded in 1936 and is headquartered in Dublin, Ireland.
Co. Dublin, 22,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|ISE||CRG||Ordinary Shares||Irish Stock Exchange||IE||EUR||02. Jan 1992|
|OTCPK||CRHC.F||Ordinary Shares||Pink Sheets LLC||US||USD||02. Jan 1992|
|DB||CRG||Ordinary Shares||Deutsche Boerse AG||DE||EUR||02. Jan 1992|
|LSE||CRH||Ordinary Shares||London Stock Exchange||GB||GBP||02. Jan 1992|
|BATS-CHIXE||CRGI||Ordinary Shares||BATS 'Chi-X Europe'||GB||EUR||02. Jan 1992|
|BATS-CHIXE||CRHL||Ordinary Shares||BATS 'Chi-X Europe'||GB||GBP||02. Jan 1992|
|NYSE||CRH||SPON ADR EA REPR 1 ORD SHS EUR0.32||New York Stock Exchange||US||USD||10. Jul 1989|
|DB||XCRA||SPON ADR EA REPR 1 ORD SHS EUR0.32||Deutsche Boerse AG||DE||EUR||10. Jul 1989|
|BMV||CRH N||SPON ADR EA REPR 1 ORD SHS EUR0.32||Bolsa Mexicana de Valores||MX||MXN||10. Jul 1989|
|Company Analysis updated:||2018/01/19|
|Last estimates confirmation:||2018/01/19|
|Last earnings update:||2017/06/30|
|Last annual earnings update:||2016/12/31|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.