Discounted Cash Flow Calculation for BST:CI1A 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:CI1A 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.
Cairo Communication's share price is below the future cash flow value, and at a moderate discount (> 20%).
Cairo Communication'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
Cairo Communication's earnings available for a low price, and how does
this compare to other companies in the same industry?
Cairo Communication's earnings are expected to grow by 11.4% yearly, however this is not considered high growth (20% yearly).
Cairo Communication's revenue is expected to grow by 0.6% 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.
Cairo Communication'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
3/6, 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
Cairo Communication's finances.
The net worth of a company is the difference between its assets and liabilities.
Cairo Communication's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Cairo Communication's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Cairo Communication'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 1.4x 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.
Dr. Uberto Fornara serves as the Chief Executive Officer and Managing Director of Cairo Communication SpA. Dr. Fornara has worked within the Group since its inception, having previously gained significant experience in the publishing segment with Publitalia '80 from 1998 and then in Mondadori Pubblicità, of which he served as Director of Customer Service since 1994. He serves as Vice-Chairman of Cairo Communication SpA and has been its Executive Director since April 22, 1999. Dr. Fornara is a graduate in Business Administration from the Bocconi University.
Uberto's compensation has been consistent with company performance over the past year.
CFO, Financial Reporting Manager & Executive Director
Secretary & Chairman of Supervisory Board
Internal Control Manager & Member of Supervisory Board
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Cairo Communication board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
CFO, Financial Reporting Manager & Executive Director
Cairo Communication S.p.A., through its subsidiaries, operates as a multimedia publishing company in Italy. The company publishes periodicals, books, and magazines. It is also involved in television publishing on digital terrestrial platforms and satellite platforms. In addition, the company operates as a concessionaire for the sale of advertising space in various media, such as commercial television, digital pay TV, print media, and the Internet; and offers audiovisual media services. Further, it provides application services, including development of Web applications and search systems for portals; and development of e-commerce solutions for the design and creation of Websites. The company is based in Milan, Italy.
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