Rangatira Annual Report 2025 - Flipbook - Page 51
Annual Report 2025
Note 8.3 Investments at Level 3
Significant estimates - fair value of investments
Although the Company believes its estimates of fair value are appropriate, the use of different methodologies or
assumptions could lead to different measurements of fair value. For Level 3 fair value measurements, changing
one or more assumptions for a possible alternatives would have the following favourable or unfavourable effects
on the valuation:
2025
Investment
sector
Change in
valuation +/$m
Valuation
technique
Unobservable
input
Assumption
or range
Reasonable
shift
Direct comparison
Value of kiwifruit land
$1.33m - $1.50m
per hectare
$0.3m
per hectare
9.1
Direct comparison
Value of forestry
land
$16.8k - $25.3k
per hectare
$4k
per hectare
3.8
NAV
Discount / premium
to NAV
0%
+/- 10%
5.4
EBITDA multiple
LTM EBITDA
multiple
10.2x
2.0x
10.4
DCF
Revenue growth
15%
+/-2%
1.9 / (1.9)
DCF
Discount rate
10%
+/-1%
(2.7) / 3.4
DCF
Terminal growth
rate
2%
+/- 0.5%
1.3 / (1.2)
Infrastructure
EBITDA multiple
LTM EBITDA
multiple
4.0x - 9.6x
+/- 1x
11.0
Tourism
EBITDA multiple
LTM EBITDA
multiple
4.8x - 7.0x
+/- 1x
8.2
EBITDA multiple
LTM EBITDA
multiple
4.1x
+/- 1x
1.5
NAV
Discount / premium
to NAV
0%
+/- 10%
0.5
Change in
valuation +/$m
Agriculture
Scientific, Health and
Eldercare
Other
2024
Investment
sector
Valuation
technique
Unobservable
input
Assumption
or range
Reasonable
shift
Agriculture
Direct comparison
Value of
Kiwifruit Land
$1.28m - $1.40m
per hectare
$0.3m
per hectare
6.2
Significant unobservable inputs are developed as follows:
LTM EBITDA multiple:
Represents the valuation multiple that is considered the best estimate of market value. The premium or discount
of the portfolio company’s valuation multiple to public listed comparable companies is calibrated to the price of
the most recent investment in the business. Comparable listed companies are selected based on geographic
location, industry, size, target markets and other factors that management considers reasonable. The list remains
consistent unless a change to the set of companies is necessary. Management also considers comparable
transactions of companies in the same industry, indicative offers from potential buyers, as well as its market
knowledge of price expectations for private businesses. There is therefore some degree of management
judgement that considers individual facts and circumstances in deciding on the appropriate valuation multiple for
each investment.
LTM :
LTM is defined as the “Last twelve months.”
EBITDA :
EBITDA is defined as “Earnings before tax, depreciation and amortisation.”
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