贴现现金流分析股本成本计算文案.pdfVIP

DiscountedCashFlow(DCF)ysis:CostofEquity–CalculatingBetaforJazz

Pharmaceuticals

WelcournextlessoninthisseriesonhowtocalculateWACC,weightedaveragecostof

capital,forJazzPharmaceuticalsandourDCFysishere.Wherewehadleftofflasttime,we

hadalreadycalculatedthePre-TaxCostofDebt,theCostofPreferredStockandwehadbeen

throughthisUnleveredBetacalculation.Andwesawhowheretheideaisthatyouwantto

separatethe’sintrinsicbusinessrisk,whichiswhatUnleveredBetarepresents,from

itsriskintroducedbyboththebusinessandfromleverage,whichiswhatLeveredBeta

represents,bothofthoseriskstogether.

Sowehaddhatforthecomparablecompanieshere.Andwhatweneedtodonowisse

wehavethemedianofthesetandwealsohaveJazzPharmaceutical’sLeveredBetarighthere,

weneedtore-leverthesesowecancalculatethemforJazzforuseintheCostofEquity

calculation.RememberthattheCostofEquityisjustequaltotheirRisk-Rateplusthe

EquityRiskPremiumtimesthisLeveredBeta.

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Thereasonwhywe’renotjustusingJazz’sLeveredBetarighthereisbecausewewanttogeta

moreaccuratepicture,andwethinkthatbylookingatthenumbersforthecomparable

companies,wecandothatandcomeupwithabetterestimateforthe’sCostof

Equitygoingforward.Soinpriple,thisisactuallyveryeasy,becausewhatwecans

simplyusethe’scurrentcapitalstructureandthenre-leverBetabasedonthat.Allwe

havetosreversetheUnleveredBetaformulathatwelookeduppreviously.

RememberinthelastlessonwesaidthatUnleveredBetawasequaltoLeveredBetadividedby

oneplustheDebttoEquityratiotimesonesminustheTaxRateplusthePreferredtoEquity

ratiorighthere.Soreallyallwe’rengistakingLeveredBetaandthenadjustin