Spotlight - Misr Chemical Industries Company

​We assign a “STRONG BUY” rating; with an upside potential of 48.9% driven from a Fair Value of EGP 12.21/share to Misr Chemical Industries Company (MICH). We applied the Discounted Cash Flow (DCF) valuation methodology to value the company’s operations, reflecting our assumptions for the company during the forecast period. Utilizing a market risk premium of 8.0% an adjusted beta of 0.44 a liquidity risk premium of 2.0%, which translates to a WACC of 16.9% and a perpetual growth rate of ...