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Rand billions, percentage
Valuations for different sales growth / RONA
combinations
Company value is driven by RONA and top
-
line
growth
25%
2%
4%
6%
8%
20%
$43,3bn
(3% sales growth,
22,5% RONA)
$58,3bn
(5% sales growth,
22,5
% RONA)
$103,3bn
(7% sales growth,
22,5
% RONA)
15%
$41,4bn
(3% sales growth,
17,5% RONA)
$53,6bn
(5% sales growth,
17,5% RONA)
$90,0bn
(7% sales growth,
17,5% RONA)
10%
$38,0bn
(3% sales growth,
12,5% RONA)
$45,0bn
(5% sales growth,
12,5% RONA)
$66,0bn
(7% sales growth,
12,5% RONA)
RONA = 10%,
Value = $55bn
implied sales growth = 7,8%
RONA = 15%,
Value = $55bn
implied sales growth = 5,6%
RONA = 25%,
Value = $55bn
implied sales growth = 4,5%
RONA = 20%,
Value = $55bn
implied sales growth = 4,9%
Annual revenue growth
RONA
Source: Global Advisors analysis