We have decided to sharply upgrade our DCF-based NAV valuation. This is fully attributable to the upgrade of the sustainable RoCE we use in our model, up 1ppt to 4.6%. Our previous sustainable RoCE estimate was based on reported 2016 results. Our new one is based on our 2017 forecasts as the year is sufficiently advanced to make them a solid basis of work. The upgrade is driven by the increase in the group’s normalised Free Cash Flow potential while capital employed is up by 6% over the
17 Nov 2017
NAV upgrade on increased sustainable RoCE
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
NAV upgrade on increased sustainable RoCE
NatWest Group Plc (NWG:LON) | 276 3.6 0.5% | Mkt Cap: 24,083m
- Published:
17 Nov 2017 -
Author:
David Grinsztajn -
Pages:
3
We have decided to sharply upgrade our DCF-based NAV valuation. This is fully attributable to the upgrade of the sustainable RoCE we use in our model, up 1ppt to 4.6%. Our previous sustainable RoCE estimate was based on reported 2016 results. Our new one is based on our 2017 forecasts as the year is sufficiently advanced to make them a solid basis of work. The upgrade is driven by the increase in the group’s normalised Free Cash Flow potential while capital employed is up by 6% over the