Discounted Cash Flow Calculation for BST:D5P 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.
BST:D5P 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.
DP Eurasia's share price is below the future cash flow value, and at a moderate discount (> 20%).
DP Eurasia'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
DP Eurasia's earnings available for a low price, and how does
this compare to other companies in the same industry?
Unable to determine if DP Eurasia is high growth as no earnings estimate data is available.
DP Eurasia's revenue is expected to grow by 16.6% 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.
DP Eurasia'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.
Mr. Aslan Saranga serves as the Chief Executive Officer, Head of Leadership, Executive Director and Chief Executive Officer of Turkish Operations at DP Eurasia N.V. Mr. Saranga served as the founding Chief Executive Officer of the exclusive master franchisee of the Domino’s System in Turkey on its inception in 1996. He serves as the Chairman of the Russian TopCo and Russian OpCo boards of directors. He is a board member of the Food Retailers Association and is a member of Domino’s Pizza General Management Council. Mr. Saranga has a masters degree in Finance from the University of Istanbul.
Insufficient data for Aslan to compare compensation growth.
Insufficient data for Aslan 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 tenure for the DP Eurasia management team is about average.
CEO, Head of Leadership & Executive Director
Chief Financial Officer
Corporate Operations Director
Chief Technology Officer
Chief Strategy Officer & Head of Investor Relations
Head of Human Resources
Chief Growth Officer
Chief Financial Officer of Russian Operations
Head of Information Technology
Head of Franchise Development
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the DP Eurasia board of directors is less than 3 years, this suggests a new board.
Board of Directors
CEO, Head of Leadership & Executive Director
Company Secretary & Executive Director
Senior Independent Non-Executive Director
Who owns this company?
Recent Insider Trading
No 3 month individual insider trading information.
DP Eurasia N.V. operates company and franchise-owned stores under the Domino’s Pizza brand. It offers pizza delivery and takeaway/eat-in services. As of December 31, 2018, it operated 724 stores, which included 535 in Turkey, 179 in Russia, 6 in Azerbaijan, and 4 in Georgia. The company was founded in 1996 and is based in Amsterdam, the Netherlands.
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