This will be the final summary of our Vetropack series. Here are links to the first two parts:
http://frenzel-herzing.com/investment-analysis-vetropack-holding/
http://frenzel-herzing.com/vetropack-analysis-part-2/
We want to start by giving you the most recent numbers (http://www.vetropack.com/htm/presse_detail_3.htm?id=159). The revenue growth was in line with our expectations, just as the decrease in EBIT matched our prediction quite closely. As we have said before, we estimated an average 2.5% revenue growth in the short term. We need to add that all calculations have been done in reporting currency, which is CHF. Most profits occur in EUR though, as one of our great readers has remarked in a comment previously. But it is even more important how the cash is pooled. The CFO has told us that the cash pool that is used for investment is also kept in EUR. So we converted our DCF model. We have made the following assumptions, using the most current numbers:
- Revenue growth of 2.5% in the short term, 2% in the long term
- 10.1% CAPEX / revenue
- 0.63 operating expenses / revenue
- 0.17 average cost / revenue
- 0.09 average depreciation, amortization / revenue