KENYAN EQUITIES & COMPANY ANALYSIS / FREE TOOL
Make the value
assumptions visible.
Value operating assets using cash flow to the firm (FCFF) before debt payments and a matching WACC. Inspect the forecast and sensitivity, then subtract net debt once.
YOUR WORKED SCENARIO
Follow the calculation.
| Measure | Calculated result |
|---|---|
| PV of years 1–5 cash flow | KES 2,078,878,605.64 |
| PV of terminal value | KES 3,835,207,615.60 |
| Terminal value before discounting | KES 7,713,972,403.20 |
Formulae used
Enterprise value equals discounted forecast cash flows plus discounted terminal value.
Equity value per share equals enterprise value less net debt, divided by shares outstanding.
Terminal value at year 5 equals year-6 FCFF divided by WACC minus perpetual growth. WACC must exceed terminal growth.
Use FCFF after operating tax and all reinvestment needed for the stated growth, before interest and debt principal. Do not substitute the MSME equity owner-earnings figure and then subtract debt again. Match currency and nominal/real assumptions. Net debt means debt less excess cash; this compact bridge omits other non-operating assets and claims. Banks and insurers require separate equity/distributable-capital models. Years are end-of-year cash flows from valuation time zero, not live market data.
What each symbol means
| Symbol | Definition and units |
|---|---|
| \(\mathrm{FCF}_t\;(\mathrm{FCFF}_t)\)FCF at t / FCFF at t | Free cash flow to the firm in forecast year t, KES/year, before interest and principal. |
| \(t\)t | End-of-year period 1 to 5 from the valuation date (time zero). |
| \(r\;(\mathrm{WACC})\)r / WACC | Annual weighted average cost of capital as a decimal, matching FCFF risk, currency and inflation basis. |
| \(g_T\)Terminal growth | Perpetual annual terminal growth as a decimal, lower than r and supported by continuing reinvestment. |
| \(TV_5\)Terminal value at year 5 | Continuing operating-asset value at the end of year 5, KES; discounted once to time zero. |
| \(\mathrm{EV}\)EV | Enterprise value of the modelled operating cash flows, KES. |
| \(\text{Net debt}\)Net debt | Debt less excess cash, KES, subtracted once to reach this simplified equity value. |
| \(\text{Shares}\)Shares | Diluted shares outstanding, count; equity value divided by this count gives KES/share. |
Year-by-year cash-flow forecast
| Year | FCFF (KES) | Present value (KES) |
|---|---|---|
| 1 | 540000000.00 | 469565217.39 |
| 2 | 583200000.00 | 440982986.77 |
| 3 | 629856000.00 | 414140544.09 |
| 4 | 680244480.00 | 388931989.24 |
| 5 | 734664038.40 | 365257868.15 |
Value per share: WACC and terminal-growth sensitivity
Rows change WACC, columns change perpetual growth. The five-year operating forecast stays unchanged. Not defined means the rate/growth pair violates the model's bounds, including WACC ≤ terminal growth.
| WACC / growth | 4.00% | 4.50% | 5.00% | 5.50% | 6.00% |
|---|---|---|---|---|---|
| 13.00% | KES 5.79 | KES 6.09 | KES 6.42 | KES 6.80 | KES 7.23 |
| 14.00% | KES 5.10 | KES 5.33 | KES 5.58 | KES 5.87 | KES 6.19 |
| 15.00% | KES 4.53 | KES 4.71 | KES 4.91 | KES 5.14 | KES 5.38 |
| 16.00% | KES 4.06 | KES 4.21 | KES 4.37 | KES 4.54 | KES 4.74 |
| 17.00% | KES 3.66 | KES 3.78 | KES 3.91 | KES 4.05 | KES 4.21 |
Take the research further.
Use the full article and companion resources to put this calculation into its wider business, household, or portfolio context. The workbook keeps the deeper scenario modelling, data record and audit trail.
Read the company-valuation research →