We derive our 12-month target price target of $35.50 using a three stage DCF (WACC=7.8%, terminal growth=2.0%), with a five year explicit forecast period and a five-year run-off period.

Major risks to our views and PT for Ansell stem from the company’s exposure to currency movements (particularly EURUSD) and raw materials pricing. Materials such as latex form a high proportion of costs and are highly volatile.