Volga Gas plc, through its subsidiaries, explores for, develops, and produces oil, gas, and condensate in the Volgograd and Saratov regions of Russia.
The last earnings update was 38 days ago.
Discounted Cash Flow Calculation for DB:KWW 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:KWW 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.
Volga Gas's share price is below the future cash flow value, and at a moderate discount (> 20%).
Volga Gas'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
Volga Gas's earnings available for a low price, and how does
this compare to other companies in the same industry?
Volga Gas's earnings are expected to grow by 10.4% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Volga Gas is high growth as no revenue estimate data is available.
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.
Volga Gas'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
Oil and Gas
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
Mr. Andrey Zozulya has been the Chief Executive Officer of Volga Gas plc since June 6, 2015 and has also been Director since May 5, 2015. Mr. Zozulya has over 20 years' experience in the oil sector in Russia both with major oil and oil service companies, including over 10 years with Schlumberger. He also has experience of operating in the Saratov region in which Volga Gas' operations are based. He has a degree in Geophysics and Engineering from the Groznensky Oil & Gas Institute and is a member of the Society of Petroleum Engineers.
Andrey's compensation has been consistent with company performance over the past year, both up more than 20%.
Andrey'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 tenure for the Volga Gas management team is about average.
CEO & Executive Director
Chief Financial Officer
Chief Technical Officer
Chief Officer GNS & PGK
Chief Geologist of Saratov Region
Investor Relations Consultant
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Volga Gas board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Volga Gas plc, through its subsidiaries, explores for, develops, and produces oil, gas, and condensate in the Volgograd and Saratov regions of Russia. It holds 100% interests in the Karpenskiy license covering an area of 4,180 square kilometers located in the Saratov region; Vostochny Makarovskoye (VM) license that covers an area of 17.8 square kilometers in the Volgograd region; Dobrinskoye license located near to its VM license; and Urozhainoye-2 license totaling an area of 354 square kilometers located to the north of its Karpenskiy license area. The company has proven and probable reserves of 39.8 million barrels of oil equivalent comprising 14.3 million barrels of oil and condensate; and 154 billion cubic feet of natural gas. Volga Gas plc was incorporated in 2006 and is based in London, the United Kingdom.
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