Discounted Cash Flow Calculation for DB:KBN using Excess Returns Model Model
The calculations below outline how an intrinsic value for Komplett Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
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.
Komplett Bank's share price is below the future cash flow value, and at a moderate discount (> 20%).
Komplett Bank'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
Komplett Bank's earnings available for a low price, and how does
this compare to other companies in the same industry?
Komplett Bank's earnings are expected to grow by 15.4% yearly, however this is not considered high growth (20% yearly).
Komplett Bank's revenue is expected to grow by 18.8% 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.
Komplett Bank'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
3/6, 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. Jan Olov Haglund has been Chief Executive Officer at Komplett Bank ASA since January 15, 2019 and served as its Chief Financial Officer since June 1, 2018 until January 15, 2019 and served as its Chief Strategy Officer until June 1, 2018. Mr. Haglund served as Managing Director of Finance of Intrum Justitia AB since October 2012. Mr. Haglund served as Regional Financial Director Northern Region at Intrum Justitia AB since March 2011. Previous to that, he was Nordic Head of Banks and Head of Business Area at Entercard and Country Manager & Director at Santander Consumer Finance. Mr. Haglund has an extensive background in the financial services industry and previous positions include Chief Executive Officer of Buckaroo, Managing Director of Intrum Justitia Finance and Nordic Head of Banks at Entercard. Mr. Haglund is an invaluable member of management team and has been instrumental in developing and executing the company’s long-term strategy. He is a seasoned executive with an extensive background from the industry, working in management positions throughout the Nordics and Europe for more than a decade before joining Komplett Bank. He has an M.Sc in Business Administration from Law School at University of Minnesota and has a Master of Laws from Uppsala University. He also holds MSc in Business Administration and Russian.
Insufficient data for Jan to compare compensation growth.
Insufficient data for Jan to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Komplett Bank management team is less than 2 years, this suggests a new team.
Chief Executive Officer
Acting Chief Financial Officer
Chief Operation Officer
Chief Marketing & Information Officer
Director of Risk Control
Kent Erik Österlund
Chief Credit Risk Officer
Director for HR & Project Office
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Komplett Bank board of directors is less than 3 years, this suggests a new board.
Komplett Bank ASA provides unsecured financing to private individuals in the Norwegian and German markets. It offers consumer loans, credit cards, and point of sale finance products, as well as deposit products. The company was formerly known as AlfaB Prosjekt ASA and changed its name to Komplett Bank ASA in 2014. Komplett Bank ASA was founded in 2012 and is headquartered in Lysaker, Norway.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.