Discounted Cash Flow Calculation for SWX:EDHN 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.
SWX:EDHN 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.
Energiedienst Holding's share price is below the future cash flow value, and at a moderate discount (> 20%).
Energiedienst Holding's share price is below the future cash flow value, but not 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
Energiedienst Holding's earnings available for a low price, and how does
this compare to other companies in the same industry?
Energiedienst Holding's earnings are expected to grow significantly at over 20% yearly.
Energiedienst Holding's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (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.
Energiedienst Holding'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.
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
Energiedienst Holding's finances.
The net worth of a company is the difference between its assets and liabilities.
Energiedienst Holding is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Energiedienst Holding's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Energiedienst Holding'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 covered by short term assets, assets are 4.6x 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.
Did You Miss Energiedienst Holding's (VTX:EDHN) 43% Share Price Gain?
During the three years of share price growth, Energiedienst Holding actually saw its earnings per share (EPS) drop 28% per year. … We note that for Energiedienst Holding the TSR over the last 3 years was 59%, which is better than the share price return mentioned above. … Before deciding if you like the current share price, check how Energiedienst Holding scores on these 3 valuation metrics.
Is Energiedienst Holding AG's (VTX:EDHN) High P/E Ratio A Problem For Investors?
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) … P/E of 61.44 = €26.57 (Note: this is the share price in the reporting currency, namely, EUR ) ÷ €0.43
Should You Be Worried About Energiedienst Holding AG's (VTX:EDHN) 1.9% Return On Equity?
By way of learning-by-doing, we'll look at ROE to gain a better understanding of Energiedienst Holding AG (VTX:EDHN). … One way to conceptualize this, is that for each CHF1 of shareholders' equity it has, the company made CHF0.019 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Is Energiedienst Holding AG (VTX:EDHN) An Attractive Dividend Stock?
Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … Historically, Energiedienst Holding AG (VTX:EDHN) has paid dividends to shareholders, and these days it yields 3.2%. … Let's take a look at Energiedienst Holding in more detail.
Can You Imagine How Energiedienst Holding's Shareholders Feel About The 28% Share Price Increase?
For example, the Energiedienst Holding AG (VTX:EDHN) share price return of 28% over three years lags the market return in the same period. … During the three years of share price growth, Energiedienst Holding actually saw its earnings per share (EPS) drop 24% per year. … What's clear is that historic earnings and revenue aren't matching up with the share price action, very well
Is Energiedienst Holding AG's (VTX:EDHN) High P/E Ratio A Problem For Investors?
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) … P/E of 35.38 = €26.21 (Note: this is the share price in the reporting currency, namely, EUR ) ÷ €0.74
Is Energiedienst Holding AG's (VTX:EDHN) Stock Available For A Good Price After Accounting For Growth?
Energiedienst Holding AG (VTX:EDHN) closed yesterday at CHF29.5, which left some investors asking whether the high earnings potential can still be justified at this price. … See our latest analysis for Energiedienst Holding? … If you are bullish about Energiedienst Holding's growth potential then you are certainly not alone
Read This Before Judging Energiedienst Holding AG's (VTX:EDHN) ROE
To keep the lesson grounded in practicality, we'll use ROE to better understand Energiedienst Holding AG (VTX:EDHN). … Energiedienst Holding has a ROE of 3.2%, based on the last twelve months. … Another way to think of that is that for every CHF1 worth of equity in the company, it was able to earn CHF0.032.
Should You Worry About Energiedienst Holding AG’s (VTX:EDHN) ROCE?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
How Does Energiedienst Holding AG (VTX:EDHN) Fare As A Dividend Stock?
Historically, Energiedienst Holding AG (VTX:EDHN) has paid a dividend to shareholders. … Let's take a look at Energiedienst Holding in more detail. … Check out our latest analysis for Energiedienst Holding
Energiedienst Holding AG produces, distributes, and sells electricity in Switzerland. It generates electricity from hydro, gas, sun, and wind sources. The company also provides heat and decentralized production services. It serves approximately 270,000 private and commercial customers. The company is based in Laufenburg, Switzerland. Energiedienst Holding AG is a subsidiary of EnBW Energie Baden-Württemberg AG.
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