Company: NCEL
Filing Date: 2025-06-23
Form Type: F-4/A
Source: 0001213900-25-056787
Chunk: 700

Company: NewcelX Ltd.
Filing Date: 2025-06-23
Form: F-4/A
Chunk 700
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 the same multiples and/or by similar financial ratios. The comparison is made based on the calculated ratio between the value of the asset and the selected performance parameter. This ratio is called the “multiplier.” The Income/Earnings Approach According to the income approach, the value of an economic asset is derived from the future cash flows arising from it. The basic principle underlying the income approach is that an asset/company is an active ongoing concern premise and will operate in the future. The aim of the income approach is to reach the current value based on the firm’s forecast cash flows. The main valuation methodology in the income approach is the discounted cash flow method (DCF). The method’s principle is that the value of the asset is the present value of free cash flow (FCF) which is generated during the forecast period (finite or infinite). The first step in this approach is to build a cash flow projection of the entity (based on the entity’s business model). The model is a set of logical -mathematicalrelationships between various parameters which are considered as factors that affect the future financial results of the asset that is estimated. The result is a line of cash flows arising from the different formulas and parameters used in the model’s assumptions. In the second phase, to determine the value of the asset it is required to set an appropriate discount rate which is the basis for discounting future cash flows and translating them into current values. The discount rate reflects the level of activity’s risk. As much as the entity’s activity is dangerous (i.e., the level of uncertainty that exists to realization is lower) then it is required to choose a higher discount rate. As much as the discount rate is higher then, the cash flow’s present value will be lower. Capital Asset Pricing Model (CAPM) assumes that the average investor holds the market portfolio and therefore he is exposed to market risks and hence measurement of risk for an individual asset is relative risk compared to the market portfolio. According to this model, the rate of return on equity is derived from the risk -freeinterest rate plus a market risk premium multiplied by the risk level of the company which is relative to the standard deviation of the market portfolio (ß). Ke = Rf + ß * (Rm -Rf) Where: RF = risk free interest rate ß = The correlation level between the return on investment and the return on the market portfolio Rm -Rf= Risk premium on risky assets above the risk -freeinterest rate The Beta of the asset will be derived usually from the calculation of