Valuation of Toya Shares: Applying DCF and Comparative Analysis Methods

VALUATION
In table below we present valuation summary:
1. DCF VALUATION Assumptions:

VALUATION

We valued Toya shares using two methods: DCF with a weight of 90% and comparative analysis with a weight of 10%. We attributed a low share to the second method due to the fact that there are no companies on the Polish stock exchange with a profile of activity very similar to Toya's. On the other hand, foreign companies dealing in the sale of power tools operate more globally, are listed on developed markets, with a clear premium to Polish entities (premium for lower country risk). In the 9-month horizon, we set the target price at PLN 10.1. We did not include any one-off events in the valuation.

In table below we present valuation summary:

DCF VALUATION Assumptions:

• Financial forecasts for 2023-2032

Advertising

• FCF discounted at the beginning of September 2023.

• Net debt on 30.06.2023 calculated at PLN 31.5 m.

• Growth rate (g) 1%.

• Risk free rate 5.6%, market risk premium 6.1%, Beta 1.0.

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.

Twitter | LinkedIn

Topics

DCF method valuation net debt financial forecasts target price risk-free rate growth rate stock exchange beta free cash flow Toya shares comparative analysis market risk premium one-off events valuation summary.

Table of contents