DCF Valuation with Assumptions: Risk-Free Rate, Market Premium, Beta, and Growth Rate

DCF valuation DCF valuation assumptions:

1) Risk-free rate of 5.5% over the detailed forecast period, based on 10-year bonds

2) Market premium of 6% (in line with our methodology for smaller sWIG80 companies)

3) Unlevered beta of 1.0x, residual growth rate of 1.5%;

4) The valuation excludes cash flows related to the joint venture with Masterplast (glass wool production). We assume consolidation of Imperalum as of Q4'23 (annual revenues of approx. PLN 100m).

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GPW’s Analytical Coverage Support Programme 3.0

The Warsaw Stock Exchange's (GPW's) Analytical Coverage Support Programme 3.0 supports investment firms in drafting analytical reports which are financed by GPW. The objective of the Programme is to improve the availability of research covering less liquid companies, facilitating investors' informed investment decisions based on a reliable independent source of issuer information. Eligible to participate in the Programme are companies listed on the GPW Main Market (other than WIG20 participants) and on NewConnect. The Programme covers up to 50 issuers.

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Topics

consolidation annual revenues assumptions risk-free rate cash flows growth rate DCF valuation 10-year bonds beta joint venture market premium residual growth rate unlevered beta detailed forecast period smaller sWIG80 companies Masterplast glass wool production Imperalum