1873.HK
VIVA BIOTECHClosed1873.HK discounted cash flow valuation
1873.HK Fair Value
Reverse DCF: today's price implies 9.6% a year of FCF growth for years 1–5, against 15.3% in this model.
Model: 15.3% from analyst next-year EPS & revenue growth. Fades linearly to terminal growth by year 10.
Model: 9.78% (CAPM, see the build-up).
Long-run growth after year 10; keep it at or below nominal GDP.
Value Bridge
| PV of free cash flow, years 1–10 | HKD 1.56B |
|---|---|
| PV of terminal value (57% of EV) | HKD 2.09B |
| Enterprise value | HKD 3.64B |
| + Cash & investments | HKD 1.20B |
| − Total debt | −HKD 1.05B |
| Equity value | HKD 3.79B |
| ÷ Shares outstanding | 2.06B |
| Value per share | HKD 1.84 |
| Market cap | HKD 2.83B |
CNY statements converted at 1.172 HKD.
Discount Rate Build-up
| Risk-free rate (10-yr Treasury) | 5.22% |
|---|---|
| Beta (clamped 0.5–2.5) | 1.31 |
| Equity risk premium | 5.00% |
| Cost of equity (CAPM) | 11.78% |
| Pre-tax cost of debt | 5.22% |
| Tax rate | 15.3% |
| Debt / (equity + debt) | 27.1% |
| WACC | 9.78% |
Cost of debt is interest expense ÷ total debt, held between the risk-free rate and 12%.
Free Cash Flow: History and Projection
Sensitivity: Value per Share
| WACC ↓ / g → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 7.78% | 2.26 | 2.41 | 2.59 | 2.80 | 3.06 |
| 8.78% | 1.93 | 2.03 | 2.15 | 2.29 | 2.46 |
| 9.78% | 1.68 | 1.75 | 1.84 | 1.94 | 2.05 |
| 10.78% | 1.48 | 1.54 | 1.60 | 1.67 | 1.75 |
| 11.78% | 1.33 | 1.37 | 1.42 | 1.47 | 1.53 |
Green is above today's price, red below (full colour at ±30%). The outlined centre cell is the current inputs.
Projected Cash Flows
| Year | Growth | Free cash flow | Discount factor | Present value |
|---|---|---|---|---|
| Base (FY2025) | — | HKD 128.50M | — | — |
| Year 1 | 15.3% | HKD 148.16M | 0.911 | HKD 134.96M |
| Year 2 | 15.3% | HKD 170.83M | 0.830 | HKD 141.75M |
| Year 3 | 15.3% | HKD 196.96M | 0.756 | HKD 148.87M |
| Year 4 | 15.3% | HKD 227.10M | 0.689 | HKD 156.36M |
| Year 5 | 15.3% | HKD 261.85M | 0.627 | HKD 164.22M |
| Year 6 | 12.7% | HKD 295.20M | 0.571 | HKD 168.65M |
| Year 7 | 10.2% | HKD 325.26M | 0.520 | HKD 169.26M |
| Year 8 | 7.6% | HKD 350.04M | 0.474 | HKD 165.93M |
| Year 9 | 5.1% | HKD 367.75M | 0.432 | HKD 158.80M |
| Year 10 | 2.5% | HKD 376.95M | 0.393 | HKD 148.27M |
Method
Two-stage free-cash-flow model, the same as the bot's lgf dcf: five years at the chosen growth rate, a straight-line fade to terminal growth by year ten, then a Gordon-growth terminal value. Everything is discounted at WACC.
Base cash flow is the trailing four quarters of operating cash flow minus capital expenditure (the latest fiscal year when quarters are missing). Default growth uses analyst long-term growth when Yahoo publishes it, else the average of next year's EPS and revenue growth, else revenue CAGR, held between −5% and 25%.
A DCF is only as good as its inputs. The terminal value is usually most of the answer, so read the sensitivity grid before the headline number. This is a model, not investment advice.