Editing Sirius Real Estate Limited
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|What is the euros to pounds foreign exchange conversion rate? | |What is the euros to pounds foreign exchange conversion rate? | ||
| | |1.13 | ||
|For simplicity, we have used the rate as of today (1:0.89). | |For simplicity, we have used the rate as of today (1:0.89). | ||
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|What is the expected constant growth rate in dividends? | |What is the expected constant growth rate in dividends? | ||
|8% | |8% | ||
| | |We note that the gross domestic product (GDP) growth rate in the last 20 years (2001 to 2022) is around 3% per year for the global economy, and around 2.25% for the United Kingdom. Since the company's inception (i.e. eight years ago), the median dividend of the company is 1.57%. Further information about the company's dividend pay-outs can be found in the appendix section of this report. | ||
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|What is the half life of the initial dividend growth rate? | |||
|7 years | |||
|We suggest using 7 years. | |||
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|Which financial forecasts to use? | |Which financial forecasts to use? | ||
|Proactive Investors | |Proactive Investors | ||
|Here, we have used | |Here, we have used the forecasts of Proactive Investors. | ||
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|What is the required return on equity? | |What is the required return on equity? | ||
|12.24% | |12.24% | ||
|For estimating the required return on equity, we used the Capital Asset Pricing Model (CAPM), which provides an economically grounded and relatively objective procedure for required return estimation, and, therefore, it has been widely used in valuation. The calculation of the required return on equity (and the reasons behind the calculation) can be found in the table below. | |For estimating the required return on equity, we used the Capital Asset Pricing Model (CAPM), which provides an economically grounded and relatively objective procedure for required return estimation, and, therefore, it has been widely used in valuation. The calculation of the required return on equity (and the reasons behind the calculation) can be found in the table below. | ||
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|What's the current value of the company? | |What's the current value of the company? |