Discounted Cash Flow Calculation for DB:2ZP 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.
DB:2ZP DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
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
is considered below, and whether this is a fair price.
Price based on past earnings
Avio's earnings available for a low price, and how does
this compare to other companies in the same industry?
Avio's earnings are expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).
Avio's revenue is expected to grow by 2.5% 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.
Avio'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
Aerospace & Defense
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
2/6, 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.
Dr. Giulio Ranzo, Ph.D. has been the Chief Executive Officer at Avio S.p.A. since October 2, 2015. Dr. Ranzo served as a General Manager at Avio S.p.A. since October 2, 2015. Dr. Ranzo served as a Director of Strategy, Marketing & Government Affairs at Avio Aero. He served as the Chief Financial Officer and Co-General Manager of the Italian activities of Cementir Holding since 2007 until 2011. He has been in Avio since 2011 and has held various positions as Senior Vice President of Corporate Strategy since 2011 until 2013, Investor Relations Officer since 2012 and Board Member since 2013. He has managed Avio’s Initial Public Offering preparation and clearance process since 2011 until 2012. He has started his career in Booz Allen Hamilton, a strategy consulting company leader in the Aerospace&Defense Sector, where he has held the roles of Associate, Senior Associate and Principal between 2000 and 2007. He has worked as Graduate Research Assistant at the University of California San Diego since 1996 until 1999. In those years he has developed business strategy projects for major European companies and institutions operating in Commercial and Military Aerospace, Space Launchers and Technologies, Defense Electronics, Business Jets and General Aviation. He served as a Board Member of Europropulsion, the ASL (Airbus Safran Launchers) - Avio Joint Venture for Space propulsion since 2011 until 2013. He serves as a Director at Avio S.p.A. He holds a Master Degree in Civil Engineering from the University of Rome (1995) and a PhD in Structural Engineering (2000) from a joint program with the University of California San Diego.
Insufficient data for Giulio to compare compensation growth.
Insufficient data for Giulio to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
CEO, GM & Director
Board of Directors
Chairman of the Board
CEO, GM & Director
Chairman of Board of Statutory Auditors
Who owns this company?
Recent Insider Trading
No 3 month individual insider trading information.
Avio S.p.A., through its subsidiaries, engages in the solid, liquid, and cryogenic and tactical propulsion activities in Italy. The company offers space launchers under the VEGA and ARIANE names. It also provides propulsion components, such as boosters and sustainers; guidance components, including TVC products; and aerodynamics components comprising fins. The company was founded in 1984 and is based in Rome, Italy.
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