The national shipping company of saudi arabia - Bank Audi
The national shipping company of saudi arabia - Bank Audi
The national shipping company of saudi arabia - Bank Audi
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THE NATIONAL SHIPPING COMPANY OF SAUDI ARABIA<br />
December 30, 2011<br />
ENTERPRISE VALUE<br />
COMPANY UPDATE EQUITY RESEARCH<br />
We also valued NSCSA using the EV/EBITDA method. We applied the current average ratio for the<br />
global players <strong>of</strong> 13.20 to the <strong>company</strong> 2012 EBITDA. A fair value <strong>of</strong> SAR 8.54 was derived.<br />
Table 9: EV/EBITDA valuation<br />
Current 2012e<br />
EBITDA SAR million 593<br />
Terminal EV/EBITDA 13.20<br />
EV SAR million 7,824<br />
WACC 8.46%<br />
PV <strong>of</strong> EV SAR million 7,214<br />
MV <strong>of</strong> preferred stock SAR million -<br />
MV debt SAR million 4,703<br />
Minority interest SAR million 285<br />
Cash & investments SAR million 463<br />
MV common stocks SAR million 2,690<br />
Shares million 315.07<br />
Price SAR 8.54<br />
FAIR VALUE<br />
A certain weight was assigned to each method and so a fair value <strong>of</strong> SAR 12.49 was derived, 2%<br />
above the current price <strong>of</strong> SAR 12.20. <strong>The</strong>refore, we recommend to hold the stock.<br />
Table 10: Fair Value<br />
Price SAR Weight Price<br />
DDM 12.37 40% 4.95<br />
FCFE 14.59 40% 5.83<br />
EV/EBITDA 8.54 20% 1.71<br />
Fair Value 12.49<br />
14
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