Our expert has declared that
The share market valuation of listed companies provides evidence of an appropriate earnings multiple for Cellestis
In a submission to ASIC (
Deloitte response to ASIC Consultation Paper 143) Deloittes made it clear that with regards to DCF
alternative valuation methodologies that may be used to value an Asset are likely to be less reliable that a DCF approach. In our view, other alternative approaches such as a market based method (resources multiples observed from comparable transactions) are approximations of a DCF approach and require or imply significant assumptions to be made which are often difficult to apply with a reasonable basis
Comparable transactions? Market based method? Where have we heard those before?
The CSAG Model is prepared using a variation of the discounted cash flow methodology. We consider the capitalisation of earnings multiple approach to be more appropriate in determining the value of a Cellestis share for the reasons set out in the Independent Expert’s Report.
However, Deloittes rejection of DCF was influenced by CST management
As independent expert we had access to management of Cellestis who were able to provide to us with their view on the key drivers of Cellestis’ business. Having taken this into account, we did not feel comfortable with adopting the discounted cash flow approach as the primary valuation approach.
In this regard the expert was
not independent.
