Discounted Cash Flow Calculation for TSXV:AHP using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Allied Hotel Properties
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
TSXV:AHP DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
Allied Hotel Properties
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Allied Hotel Properties's
is considered below, and whether this is a fair price.
Price based on past earnings
Allied Hotel Properties's earnings available for a low price, and how does
this compare to other companies in the same industry?
Allied Hotel Properties's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Unable to determine if Allied Hotel Properties is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Allied Hotel Properties's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Allied Hotel Properties
has a total score of
5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Allied Hotel Properties's finances.
The net worth of a company is the difference between its assets and liabilities.
Allied Hotel Properties's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Allied Hotel Properties has no long term commitments.
This treemap shows a more detailed breakdown of
Allied Hotel Properties's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.1x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Peter Y. L. Eng has been the Chairman & Chief Executive Officer of Allied Hotel Properties Inc., Allied Pacific Properties and Hotels Ltd., since September 1, 2003 and serves as Founder at Allied Hotel Properties Inc. Mr. Eng serves as the Chairman of the Board of Allied Holdings Ltd. and its division Allied Hotel Properties Inc., and Allied Holdings Group. He serves as the Chairman of the Board of Allied Pacific Properties and Hotels Ltd., and has been its Director since 1994. He has been a Director of Allied Hotel Properties Inc., since October 21, 1999. Mr. Eng serves as Director of Allied Holdings Ltd. and has been a Director at HSBC Canada Asset Trust since December 1995. He served as a Director of HSBC Bank Canada since December 1995.
Peter's compensation has been consistent with company performance over the past year, both up more than 20%.
Peter's remuneration is higher than average for companies of similar size in Canada.
Board of Directors Tenure
Average tenure of the
Allied Hotel Properties
board of directors in years:
The average tenure for the Allied Hotel Properties board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Syed Abu bin Syed Mohsin Almohdzar
Who owns this company?
Recent Insider Trading
No 3 month individual insider trading information.
Allied Hotel Properties Inc (CVE:AHP): A Look At Return On Capital
and looking to gauge the potential return on investment in Allied Hotel Properties Inc (CVE:AHP). … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … To understand Allied Hotel Properties’s capital returns we will look at a useful metric called return on capital employed.
Does Allied Hotel Properties Inc's (CVE:AHP) 105.56% Earnings Growth Make It An Outperformer?
Assessing Allied Hotel Properties Inc's (TSXV:AHP) performance as a company requires looking at more than just a years' earnings data. … Below, I will run you through a simple sense check to build perspective on how Allied Hotel Properties is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its hospitality industry peers. … Given that these values may be relatively myopic, I have calculated an annualized five-year figure for AHP's earnings, which stands at -CA$1.84M This shows that, on average, Allied Hotel Properties has been able to consistently improve its earnings over the past few years as well.
Allied Hotel Properties Inc. engages in the ownership, management, and development of hotels and real estate properties in Canadian urban centers. It operates in two segments, Hotel Operations and Real Estate Development. The company owns and manages the Toronto Don Valley Hotel and Suites, a 353 room full service hotel located in Toronto, Ontario. It also has an interest in a residential condominium development project in Toronto. The company was founded in 1968 and is based in Vancouver, Canada. Allied Hotel Properties Inc. is a subsidiary of Allied Holdings Ltd.
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