Discounted Cash Flow Calculation for DB:PFI 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:PFI 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.
Palfinger's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Palfinger'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
Palfinger's earnings available for a low price, and how does
this compare to other companies in the same industry?
Palfinger's earnings are expected to grow by 18.3% yearly, however this is not considered high growth (20% yearly).
Palfinger's revenue is expected to grow by 1.7% 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.
Palfinger'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
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.
TENURE AS CEO
Mr. Andreas Klauser has been the Chief Executive Officer at Palfinger AG since June 1, 2018 and its Member of Management Board/Member of the Executive Board since 2018. Mr. Klauser serves as Brand President of Case IH & Steyr at Iveco Magirus Brandschutz Technik Gmbh. He has been the President of Case IH Agricultural Equipment at CNH Global N.V. since December 1, 2009. He has been the Chief Executive Officer and President of Case IH since October 2009. He was General Manager of Magirus at CNH Industrial N.V. from January 1, 2016 to 2018 and was its Brand President of Case IH & Steyr Agricultural Equipment from December 2009 to 2018. He serves as the Chief Operating Officer of EMEA at Fiat Industrial SpA. He joined the Group Executive Council of CNH Industrial. He served as the Chief Operating Officer of EMEA at CNH Industrial NV and a member of The Group Executive Council. From 2012 to 2015 he served as Chief Operating Officer for CNH Industrial for the EMEA region. Mr. Klauser heads Case IH Agricultural Equipment business in Europe and has been with CNH Global NV for 19 years. He served as the Chief Executive Officer of Case IH Agricultural Equipment In at CNH Global NV since November 30, 2009. He has extensive experience in the agricultural sector. Mr. Klauser holds a degree from Steyr's HTBLA program, a Federal Higher Technical Institute for Mechanical Engineering and a Degree in Export Business from the University of Linz.
Insufficient data for Andreas to compare compensation growth.
Andreas's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Palfinger management team is about average.
CEO & Member of Management Board
CFO & Member of the Management Board
COO, CTO & Member of the Executive Board
Investor Relations Officer
Managing Director of Business Unit Cranes
Head of Forest & Recycling Crane Division and Managing Director of Epsilon
Head of Corporate HR
President of Consolidated Americas Region
Executive Officer of Orlyfunt
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Palfinger board of directors is about average.
Palfinger AG produces and sells lifting solutions worldwide. The company operates through two segments, LAND and SEA. The SEA segment offers marine cranes, offshore cranes, davits, boats, lifesaving equipment, winches and offshore equipment, wind cranes, and rope access products, as well as related services. The LAND segment provides loader cranes, timber and recycling cranes, telescopic cranes, mobile cranes, stiff boom cranes, tail lifts, access platforms, hooklifts and skiploaders, truck mounted forklifts, passenger lifts, bridge inspection units, and railway systems. The company also offers contract manufacturing services, including steel construction, cylinder production, chrome and nickel chrome plating, KTL cathotic dip coating and spray painting, and assembly and pre-assembly of subsystems or assemblies; and spare parts, training, project engineering, and customer services. It serves various industries, such as construction, cruise, infrastructure, maintenance, marine, mining, navy and coast guard, offshore, oil and gas, railway, recycling and waste management, rental, shipping, forestry and agriculture, transport and logistics, and wind energy, as well as local authorities. The company provides its products and services through a network of approximately 5,000 outlets in 130 countries; and 200 independent general importers. Palfinger AG was founded in 1932 and is headquartered in Bergheim, Austria. Palfinger AG is a subsidiary of The Palfinger Family.
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