Discounted Cash Flow Calculation for TSX:ALEF using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
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.
TSX:ALEF DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Aleafia Health's share price is below the future cash flow value, and at a moderate discount (> 20%).
Aleafia Health's share price is below the future cash flow value, and at a substantial discount (> 40%).
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
is considered below, and whether this is a fair price.
Price based on past earnings
Aleafia Health's earnings available for a low price, and how does
this compare to other companies in the same industry?
Aleafia Health's earnings are expected to grow significantly at over 20% yearly.
Aleafia Health's revenue is expected to grow significantly at over 20% yearly.
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.
Aleafia Health'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.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
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. Geoffrey Benic, also known as Geoff, has been Chief Executive Officer of Aleafia Health Inc since June 28, 2018. Previously, Mr. Benic served as the Regional Director of United Parcel Service Canada Ltd, Mr. Benic moved on to be an initial Grocery Gateway employee and General Manager. From October 2004 until June 2018, Mr. Benic was the founder and chairman of Sofilia Logistics Group Inc.
Insufficient data for Geoff to compare compensation growth.
Geoff's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Aleafia Health management team is less than 2 years, this suggests a new team.
Chief Executive Officer
CFO & Corporate Secretary
Chief Medical Officer
Chief Operating Officer
Chief Marketing & Technology Officer
Vice President of Public Affairs
Vice President of Human Resources
President of Clinic Operations
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Aleafia Health board of directors is less than 3 years, this suggests a new board.
Why Aleafia Health Inc. (TSE:ALEF) Could Have A Place In Your Portfolio
By this I mean, I look at stocks holistically, from their financial health to their future outlook. … For those interested in digger a bit deeper into my commentary, take a look at the report on Aleafia Health here. … Excellent balance sheet with high growth potential Investors in search for stocks with room to flourish should look no further than ALEF, with its expected earnings growth of 95%.
Did You Miss Aleafia Health's (TSE:ALEF) Impressive 183% Share Price Gain?
(TSE:ALEF) shareholders might be concerned after seeing the share price drop 18% in the last month. … Like an eagle, the share price soared 183% in that time. … Aleafia Health isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS).
Aleafia Health Inc. operates as an integrated cannabis health and wellness company. It produces a portfolio of products, including oils, capsules, and sprays. The company also operates a network of 25 medical cannabis clinics; and education centers. Aleafia Health Inc. is headquartered in Concord, Canada.
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