Discounted Cash Flow Calculation for DB:C7O 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:C7O 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.
Caverion Oyj's share price is below the future cash flow value, and at a moderate discount (> 20%).
Caverion Oyj'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
Caverion Oyj's earnings available for a low price, and how does
this compare to other companies in the same industry?
Caverion Oyj's earnings are expected to grow significantly at over 20% yearly.
Caverion Oyj's revenue is expected to grow by 1.8% 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.
Caverion Oyj'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. Ari Tapio Lehtoranta, M.Sc. (Eng.), serves as the Chief Executive Officer and President of Nokian Tyres, Inc. Mr. Lehtoranta has been Chief Executive Officer, President and Member of Management Board at Caverion Oyj since January 1, 2017. He served as the Chief Executive Officer and President of Nokian Renkaat Oyj (AKA Nokian Tyres Plc) from October 1, 2014 to December 31, 2016. He joined Nokian Tyres on September 1, 2014. Mr. Lehtoranta served as an Executive Vice President of Central and North Europe at Kone Oyj (AKA KONE Corporation) from 2010 to September 1, 2014. Mr. Lehtoranta served as a Member of Executive Board at Kone Oyj from November 3, 2008 to August 31, 2014. Mr. Lehtoranta served as an Executive Vice President of Major Projects at Kone Oyj from November 3, 2008 to 2010. Mr. Lehtoranta served at Nokia Siemens Networks, where he served as Head of the Radio Access Business Unit and Senior Vice President from 2005 to 2008. He served as a Vice President of Operational Human Resources at Nokia Corporation from 2003 to 2005. He served as Head of Broadband Division, Systems Integration and Vice President for Customer Services for Europe at Nokia Networks from 1999 to 2003. He served as Managing Director of Italy at Nokia Telecommunications from 1985 to 1999 and served various other positions of Nokia Telecommunications from 1985 to 2003. He served several senior positions at Nokia since 1985. He served as the Chairman of Caverion Oyj (AKA Caverion Corporation) from March 16, 2015 to November 2016 and served as its Vice Chairman until March 16, 2015. He served as Vice Chairman of Elisa Oyj (AKA Elisa Corporation) from April 2012 to April 2, 2014 and served as its Director from 2009 to April 2, 2014. He has been a Director of Orion Oyj since March 22, 2017. He has been Deputy Chairman of Supervisory Board at Ilmarinen Mutual Pension Insurance Company since April 6, 2017. He serves as a Member of Supervisory Board at Ilmarinen Mutual Pension Insurance Company. He served as a Director of Caverion Oyj from 2013 to November 2016. He served as a Director of YIT Oyj (AKA YIT Corporation) from March 15, 2013 to June 30, 2013. Mr. Lehtoranta has an M.Sc. in Electrical Engineering from the Helsinki University of Technology. He has M.Sc. in Telecommunications.
Ari's compensation has increased whilst company is loss making.
Ari's remuneration is about 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 Caverion Oyj management team is about average.
CFO of Finance
Interim Head of Division Industrial Solutions & Member of Management Board
VP of Project Management & Execution Development and Member of Management Board
Executive VP of Caverion Finland & Member of Management Board
Head of Legal & Compliance
Head of Human Resources & Safety and Member of Management Board
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Caverion Oyj board of directors is less than 3 years, this suggests a new board.
Caverion Oyj, together with its subsidiaries, operates as a service company in building systems, construction services, and services for industry. It designs, builds, operates, and maintains technical solutions for buildings, industries, and infrastructures. The company offers its services in the areas of advisory, design and engineering, project management and execution, technical maintenance, and managed services. Its services are used in offices and retail properties, housing, public premises, industrial plants and infrastructure, and other places. The company serves the public sector, various industries, real estate investors and developers, real estate users, and general contractors in Sweden, Germany, Norway, Finland, Austria, Denmark, and Eastern Europe. Caverion Oyj was founded in 2005 and is headquartered in Vantaa, Finland.
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.