Discounted Cash Flow Calculation for DB:EV4 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:EV4 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.
Constantin Medien's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Constantin Medien'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
Constantin Medien's earnings available for a low price, and how does
this compare to other companies in the same industry?
Constantin Medien's earnings are expected to grow significantly at over 20% yearly.
Constantin Medien's revenue is expected to grow by 3.5% 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.
Constantin Medien'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
Constantin Medien's finances.
The net worth of a company is the difference between its assets and liabilities.
Constantin Medien is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Constantin Medien's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Constantin Medien'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 34.9x 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. Olaf Schröder has been the Chief Executive Officer of Constantin Medien AG since August 2017. Mr. Schröder served as the Chief Operating Officer of Sports at Constantin Medien AG and serves as Chairman of the Management Board at Constantin Medien AG. Mr. Schröder has been the Chairman of the Management at Sport1 GmbH since October 1, 2014 and serves as its Managing Director for the Program and Editorial Areas.
Olaf's compensation has increased whilst company is loss making.
Olaf's remuneration is about average for companies of similar size in Germany.
CEO & Chairman of Management Board
Member of Management Board
Board of Directors Tenure
Average tenure of the
board of directors in years:
The average tenure for the Constantin Medien board of directors is less than 3 years, this suggests a new board.
Constantin Medien AG, together with its subsidiaries, operates as a media company in Germany, rest of Europe, and internationally. The company owns and operates SPORT1, a free-television (TV) channel; pay-TV channels, such as SPORT1+ and SPORT1 US; SPORT1.de, an online portal; mobile SPORT1 applications; and SPORT1.fm, a digital sports radio. It also offers services in the field of moving image production; and media consultancy and communication services. The company was formerly known as EM.Sport Media AG and changed its name to Constantin Medien AG in April 2009. Constantin Medien AG is headquartered in Ismaning, Germany.
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