The merger offer for Renault by Fiat Chrysler Automobiles valued the French carmaker’s equity at 15.3 billion euros excluding a forthcoming dividend.

This calculator determines whether Renault’s offer was fair or not by dividing the company into four parts: its 43% stake in Japanese partner Nissan, a small holding in Germany’s Daimler, its financing arm RCI Banque, and the main automotive business.

The output is the equity value of Renault’s core operations, after deducting the other parts.

The optimistic scenario takes the market values of Nissan and Daimler on May 24, before Fiat’s proposal was announced, and RCI Banque’s book value at the end of December.

The more realistic default scenario for the Nissan stake starts with the 598 million euros in dividends that Renault will receive from its shareholding this year, based on Refinitiv estimates, and discounts them at a conservative 10% rate for 20 years assuming no growth. The Daimler shares are valued at 15% less than their market value to reflect the haircut Renault would have to accept if it sold out. RCI Banque is valued at three-quarters of book value to reflect depressed European bank valuations and the fact that it can’t realistically be separated from the parent group.

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