Company Valuation Under IFRS : Interpreting and Forecasting ...

Company valuation under IFRS
7. Calculation of Fixed Asset Retirement under constant growth
R=F/[1+(1+g)+(1+g) 2 +…(1+g) n-1 ]
F/R=1+(1+g)+(1+g) 2 +…(1+g) n-1
F/R(1+g)=(1+g)+(1+g) 2 +(1+g) 3 +…(1+g) n
F/R-F/R(1+g)=1-(1+g) n
-gF/R=[1-(1+g) n ]
R=-gF/[1-(1+g) n ]
8. Dupont analysis
R=P/CE=P/S*S/CE
CE=D+E
Y=RE+RD-ID
Y=RE+(R-I)*D
Y/E=R+(R-I)*D/E
r=R+(R-I)*D/E
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