Discounted Cash Flow Calculation for BST:1HQ using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Ten Square Games
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:1HQ DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
Ten Square Games
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
Ten Square Games
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Ten Square Games's share price is below the future cash flow value, and at a moderate discount (> 20%).
Ten Square Games'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
Ten Square Games's
is considered below, and whether this is a fair price.
Price based on past earnings
Ten Square Games's earnings available for a low price, and how does
this compare to other companies in the same industry?
Ten Square Games's earnings are expected to grow by 15.2% yearly, however this is not considered high growth (20% yearly).
Ten Square Games's revenue is expected to grow by 16.4% 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.
Ten Square Games'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.
Ten Square Games
has a total score of
6/6, 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
Ten Square Games's finances.
The net worth of a company is the difference between its assets and liabilities.
Ten Square Games is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Ten Square Games's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Ten Square Games'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.
Ten Square Games has no debt, it does not need to be covered by short term assets.
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.
Mr. Maciej Popowicz has been President of the Management Board at Ten Square Games S.A. since 2011. Mr. Popowicz serves as President of the Management Boards at Tiny Dragon Adventure Games Sp. z .o.o and Play Cool Zombie Sport Games Sp. z o.o. Mr. Popowicz Graduated from University of Wroclaw, faculty of Information Technology.
Insufficient data for Maciej to compare compensation growth.
Insufficient data for Maciej to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Ten Square Games S.A. engages in the mobile games development business worldwide. It offers free-to-play games through social platforms and a network of partner sites, as well as on Google Play, App Store, and Microsoft Store. The company was founded in 2011 and is based in Wroclaw, Poland.
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