Discounted Cash Flow Calculation for DB:KRTA using Excess Returns Model Model
The calculations below outline how an intrinsic value for Krungthai Card 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.
Krungthai Card's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Krungthai Card'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
Krungthai Card's earnings available for a low price, and how does
this compare to other companies in the same industry?
Krungthai Card's earnings are expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).
Krungthai Card's revenue is expected to grow by 11.2% 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.
Krungthai Card'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
4/6, 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
Dr. Rathian Srimongkol, M.D., has been the Chief Executive Officer and President of Krungthai Card Public Co. Ltd. since January 11, 2012. Dr. Srimongkol serves as Senior Executive Vice President of Operations Group at Siam City Bank Public Company Limited. He served as Chief Financial Officer and First Executive Vice President, Treasury & International Banking of Siam City Bank Public Company Limited. He served as an Acting President of Thana One Finance & Securities Public Company Limited from 1994 to 1998. He served as an Executive Vice President of Siam City Bank Public Company Limited from 2001 to 2004. He serves as Vice Chairman and Lead Independent Director of Indorama Ventures Public Company Limited. He serves as a Director of Thailand Privilege Card Company Limited. He has been an Independent Director of Indorama Ventures Public Company Limited since September 19, 2009. He has been an Independent Director of One to One Contacts Public Company Limited since March 27, 2013. He has been a Director of Krungthai Card Public Co. Ltd. since January 11, 2012. He served as an Independent Director of Matichon Public Company Limited until January 17, 2006. He served as a Director of TOT Public Company Limited. He served as an Executive Director of Thana One Finance & Securities Public Company Limited from 1994 to 1998. He holds a Certificate in Politics and Governance in Democratic Systems for Executives Course (Class 9) from King Prajadhipok’s Institute, Thailand, Diploma in National Defense College, The Joint State - Private Sectors Course Class No. 51/21 from National Defense College of Thailand and Capital Market Academy Leadership Program from Capital Market Academy (Class 11), Thailand. He did Director Certification Program Class No. 8/2001, Role of the Chairman Program Class No. 19/2008 and Financial Statements Demystified for Director Class No.1/2009 from Thai Institute of Directors, Thailand. Dr. Srimongkol holds M.P.A in General Administration from Suan Sunandha Rajabhat University. He holds Bachelor of Medical Science from Mahidol University, Medical Degree, (Siriraj Hospital) from Mahidol University and Master of Business Administration from Thammasat University.
Rathian's compensation has been consistent with company performance over the past year, both up more than 20%.
Rathian'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 average tenure for the Krungthai Card management team is over 5 years, this suggests they are a seasoned and experienced team.
CEO, President & Director
Chief Financial Officer
Chief Operations Officer
Chief Accountant & Senior VP of Finance and Accounting
Director of Legal Consult & Service Line and Company secretary
Senior VP of Compliance
Executive VP of Corporate Communications
Executive VP of Credit Card
Senior EVP of Distribution & Merchant Acquiring
Executive VP of Personal Loans Business
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Krungthai Card board of directors is less than 3 years, this suggests a new board.
Krungthai Card Public Company Limited engages in the credit card, personal loan, and other related businesses in Thailand. It operates as a payment service provider, as well as offers utilities payment services. The company was incorporated in 1996 and is headquartered in Bangkok, Thailand.
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