House: Borrow, Buy, Sell and Profit

House price may increase in one or two years and the total cost including the paid instalments, left loan balance and prepayment penalty may be lower than the house price (after agent fee) if sold.

Then, we can profit and start finding another house to buy and wait for another year or two. The key is maintaining a good relationship with the loan provider.

HomePlan.xls

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WACC Calculation

This model is to estimate the weighted average cost of capital (WACC) of Mainfreight Limited (MFT), an NZX listed company.

Bear in mind, the debt and equity values should be estimated as the MARKET VALUES.

Some may just estimate the BETA, but in this model I calculated it based on the historical share prices. I used NZX ALL index as the market proxy and 5 year NZ Government Bond as the risk-free rate with risk premium assumed 7%.

WACC Calculation.x...

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Share Valuation

This model is the share valuation of PT Astra International Tbk using Dividend Discount Model with assumed growth of 40%.

This should be the simplest way to value a share. By calculating the cost of equity as the discount factor, the projection of dividend cash flow is discounted to get the estimated value.

Seems similar with growth annuity valuation?

ShareValue.xls

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