Discounted Cash Flow Calculation for BST:N16 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 use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
BST:N16 DCF 1st Stage: Next 5 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.
Envision Healthcare's share price is below the future cash flow value, and at a moderate discount (> 20%).
Envision Healthcare'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
Envision Healthcare's earnings available for a low price, and how does
this compare to other companies in the same industry?
Envision Healthcare's earnings are expected to grow significantly at over 20% yearly.
Envision Healthcare's revenue is expected to grow by 7% 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.
Envision Healthcare'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
Envision Healthcare's finances.
The net worth of a company is the difference between its assets and liabilities.
Envision Healthcare is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Envision Healthcare's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Envision Healthcare'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 not covered by short term assets, assets are 0.5x 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. Christopher A. Holden has been the Chief Executive Officer and President of Envision Healthcare Corporation (alternate name: AmSurg Corp.), headquartered in Nashville, Tennessee and Envision Healthcare Corporation, headquartered in Greenwood Village, Colorado since December 2016. Mr. Holden is a healthcare services industry veteran with more than 25 years of experience, having spent most of his career in multi-facility and multi-market healthcare management. Mr. Holden served as the Chief Executive Officer and President at Sheridan Healthcare, Inc. until December 5, 2016. He served as the Chief Executive Officer and President at Envision Healthcare Holdings, Inc. Mr. Holden served as the Chief Executive Officer and President of AmSurg Corp. since October 1, 2007 until 2016. Mr. Holden founded Triad Healthcare Corporation in 1999 and served as its Division President since May 29, 2001. From May 11, 1999 to May 29, 2001, he served as a Senior Vice President of Triad Hospitals Inc. From January 1, 1998 to May 11, 1999, he served as President of West Division of the Pacific Group of HCA Healthcare Corporation. Mr. Holden was a founding team member and officer at Triad Hospitals, Inc. since May 1999. Mr. Holden served as the President of West Texas Division of the Central Group of HCA from September 1997 to January 1, 1998 and Vice President of Administration for Central Group of HCA from August 1994 to September 1997. He served as an Assistant Vice President of Administration of Central Group of National Medical Enterprises, Inc., where he involved in hospital administration for five years. Mr. Holden is a healthcare industry veteran of more than 30 years, engaged during most of his career directly in multi-facility and multi-market healthcare management. From August 1994 to May 1999, he held several officer positions with Columbia/HCA Healthcare Corporation. He serves as Director At-Large at Nashville Health Care Council. He has been a Director of Envision Healthcare Corporation since December 2016. He serves as a Director of Sheridan Healthcare, Inc. He served as a Director at AmSurg Corp. since October 1, 2007. He served as a Director at Envision Healthcare Holdings, Inc. Mr. Holden received his Bachelor of Science degree in Health Policy and Administration from The University of North Carolina and his Juris Doctorate and Masters in Healthcare Administration degrees from Washington University in St. Louis.
Christopher's compensation has increased whilst company is loss making.
Christopher'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 Envision Healthcare management team is less than 2 years, this suggests a new team.
CEO, President & Director
Executive VP & CFO
Executive VP & COO
Senior VP & Chief Accounting Officer
Vice President of Investor Relations
Executive VP & President of Ambulatory Services
Senior VP & Chief Strategy Officer
Executive VP & President of Physician Services
Vice President of Development
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Envision Healthcare board of directors is less than 3 years, this suggests a new board.
Envision Healthcare Corporation, through its subsidiaries, provides various healthcare services in the United States. The company operates through two segments, Physician Services and Ambulatory Services. As of December 31, 2017, its physician-led services encompassed providers at approximately 1,800 clinical departments at healthcare facilities in 45 states and the District of Columbia that include emergency department and hospitalist, anesthesiology, radiology/tele-radiology, and children's services. The company also offers ambulatory surgical centers (ASCs) services that provide surgical procedures across multiple specialties, including gastroenterology, ophthalmology, orthopedics, and others. It operated 264 ASCs in 35 states and the District of Columbia. In addition, it provides surgery services, such as management, oversight, and surgeon staffing for trauma surgery services; offers direct patient care and care coordination by clinicians outside the acute care setting through physician-led post-acute care services; and operates office-based medical practices that primarily focus on women’s health, as well as provides physician staffing and related management services. Further, it offers medical transportation services in 41 states and the District of Columbia. The company offers its clinical solutions for health systems, payors, providers, and patients. Envision Healthcare Corporation was founded in 1992 and is based in Nashville, Tennessee.
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