EFG International AG, together with its subsidiaries, provides private banking, wealth management, and asset management services to individual and business clients.
The last earnings update was 37 days ago.
Discounted Cash Flow Calculation for DB:E2S using Excess Returns Model Model
The calculations below outline how an intrinsic value for EFG International 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.
EFG International's share price is below the future cash flow value, and at a moderate discount (> 20%).
EFG International'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
EFG International's earnings available for a low price, and how does
this compare to other companies in the same industry?
EFG International's earnings are expected to grow significantly at over 20% yearly.
EFG International's revenue is expected to grow by 5.6% 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.
EFG International'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.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
EFG International's finances.
The net worth of a company is the difference between its assets and liabilities.
EFG International's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
EFG International's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
EFG International's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 6.5x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
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. Piergiorgio Pradelli, also known as Giorgio, has been Deputy Chief Executive Officer at EFG International AG since January 14, 2014 and has been its Chief Financial Officer since June 2012. Mr. Pradelli serves as the Chief Financial Officer and Deputy Chief Executive Officer of EFG Bank AG. He served as the Chief Financial Officer of EFG International and EFG Bank since June 1, 2012. He served as Managing Director of ERB New Europe Funding B.V., The Netherlands and ERB New Europe Funding II B.V., The Netherlands until May 25, 2012. He served as General Manager of International Division of Evrobanka EFG štedionica since June 1, 2006. He served as Head of International Operations of Evrobanka EFG štedionica (alternate Name, Efg Eurobank Ergasias SA) from June 1, 2006 to 2012 and served as its General Manager from June 1, 200 to May 31, 2012. From 2003 to 2006, he served as Deputy Chief Financial officer of eFG bank european Financial Group SA, the largest shareholder of eFG International. He served as General Manager of Euro Bank, a subsidiary of Efg Eurobank Ergasias SA, since June 1, 2006. He served as Deputy Finance Director in London for the Bank's parent company EFG Group. He served for 12 years at Deutsche Bank, where he started his career in 1991, including Head of Private & Business Banking in Italy, Head of Business Development for the private Clients and Asset Management Group in Frankfurt and Head of Business Development for Personal Banking in Frankfurt. He served as the Chairman of the Supervisory Board at Eurobank Bulgaria AD until August 30, 2012. He has been a Director of EFG Bank (Luxembourg) S.A. since November 14, 2016. He has been a Director of EFG Financial Products Holding AG. He serves as a Director of eFG International's subsidiaries eFG private bank ltd, london and eFG Asset Management Holding AG, zurich. He served as a Director of Eurobank Bulgaria AD until May 24, 2012. He served as a Director of Eurobank Private Bank Luxembourg S.A., Luxembourg until May 31, 2012. He served as a Member of the Supervisory Board at PJSC "Universal Bank", Ukraine until May 31, 2012. He served as a Member of the Board of Directors at Eurobank Asset Management M.F.M.C. S.A., Greece until June 01, 2012. He served as a Director of S.C. Bancpost S.A. until May 24, 2012. He served as a Director of Eurobank Tekfen A.S. until May 31, 2012 and Burgan Bank Anonim Sirketi since March 16, 2007 and Leonteq AG from September 17, 2012 to April 25, 2013. Mr. Pradelli has a University Degree in Economics and Business Administration from the University of Turin.
Insufficient data for Giorgio to compare compensation growth.
Giorgio's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the EFG International management team is less than 2 years, this suggests a new team.
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
Chief Technology Officer
Head of Investor Relations
Group Head of Legal & Compliance
Head of Marketing & Communication
Global Head of Human Resources
Deputy Chief Risk Officer
Board of Directors
Chairman of the Board
Vice Chairman of the Board
Rudy Van Den Steen
Chairman of EFG Bank Von Ernst Ag Vaduz and Chairman of on Finance Sa Lugano
Chairman of Marble Bar Asset Management LLP & CEO of Marble Bar Asset Management Ltd
Chairman of Private Banking - Management EFG Bank AG
Chairman of EFG Capital International Corp Miami Florida USA
President of the Board of A&g Holding
Chairman of Efg Ashby London Financial Svcs Ltd & Chairman of Efg Platts Flello Ltd
Non-Executive Chairman of Efg Private Bank (channel Islands) Limited Guernsey
EFG International AG, together with its subsidiaries, provides private banking, wealth management, and asset management services to individual and business clients. The company operates through eight segments: Central Switzerland, and Ticino & Italy; Romandie & Continental Europe; Americas; United Kingdom; Asia; Investment Solutions; Global Markets & Treasury; and Other. The company offers investment solutions, including asset management mandate, advisory, investment fund, third party-fund selection, structured product, alternative investment, and trading services; wealth solutions, such as wealth planning, pension products, and art advisory; credit and financing services comprising property and investment finance; eBanking and security services; and other banking services consisting of accounts and cards, as well as custody, foreign exchange and treasury, and client reporting. It also provides investment advisory research services; training services for external asset managers; and commercial banking services. In addition, it engages in the trade of securities, derivatives, foreign exchange, money market papers, and precious metals on behalf of its clients. The company was founded in 1995 and is headquartered in Zurich, Switzerland.
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