Valuation

Valuation summary

We assign target prices for Ukrainian farming companies using a 50/50 blend of DCF and asset-based valuation methods. We employ a mix as DCF captures company-specific cost and yields efficiencies, while the asset-based approach focuses on the target EV/ha ratio that accounts for quality of location and efficiency compared to region of operations.

Valuation summary

Company name	Target EV/ha		Implied price		Target price, USD	Last price USD		Upside		Target price, listed currency
	DCF	Multiple-based approach	DCF	Multiple-based approach

Asset-based approach

For asset-based valuation, we start with an assumption for Ukraine’s average value for leasing rights, USD 1,600/ha (see details for how we arrive at this figure in Appendix X). We then apply a range of premiums and discounts to account for location and efficiency compared to a company’s region of operations. For companies also engaged in non-farming activities, we add the value of their non-core businesses.

Asset-based valuation summary

Company name	Weighted regions target EV/ha, USD	Premium for company`s efficiency compared to its region	Implied target EV/ha, USD	Implied EV of farming business	EV of non-farming business	Target EV, USD mln	Net Debt, USD mln, 2011	Target price, USD

Asset-based valuation

For asset-based valuation, we:

• start with an assumption for Ukraine’s average value for leasing rights, USD 1,600/ha (see details for how we arrive at this figure in Appendix X)

• then we apply a range of premiums and discounts to account for location and efficiency compared to a company’s region of operations (see below for the full list)

• For companies also engaged in non-farming activities, we add the value of their non-core businesses based on target EV/EBITDA multiple and asset value for storage facilities