Discounted Cash Flow Calculation for DB:EVD using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
CTS Eventim KGaA
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:EVD DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
CTS Eventim KGaA
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
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
CTS Eventim KGaA's
is considered below, and whether this is a fair price.
Price based on past earnings
CTS Eventim KGaA's earnings available for a low price, and how does
this compare to other companies in the same industry?
CTS Eventim KGaA's earnings are expected to grow by 12.7% yearly, however this is not considered high growth (20% yearly).
CTS Eventim KGaA's revenue is expected to grow by 5.2% 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.
CTS Eventim KGaA'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.
CTS Eventim KGaA
has a total score of
5/6, 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
CTS Eventim KGaA's finances.
The net worth of a company is the difference between its assets and liabilities.
CTS Eventim KGaA is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
CTS Eventim KGaA's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
CTS Eventim KGaA'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 14.3x 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.
Mr. Klaus-Peter Schulenberg serves as the Chairman of Management Board of Chief Executive Officer of EVENTIM Management AG, the General Partner of CTS Eventim AG & Co. KGaA. Mr. Schulenberg served as Director for Corporate Strategy, New Media & Marketing of EVENTIM Management AG.
Klaus-Peter's compensation has been consistent with company performance over the past year.
Klaus-Peter's remuneration is higher than average for companies of similar size in Germany.
Chairman of Management Board & CEO of EVENTIM Management AG
CFO & Member of Management Board of EVENTIM Management AG
Betriebswirt Christian Ruoff
COO & Member of Management Board of EVENTIM Management AG
Head of Marketing Partnerships & Sponsorship Division of Eventim Management Ag
Board of Directors Tenure
Average tenure of the
CTS Eventim KGaA
board of directors in years:
The average tenure for the CTS Eventim KGaA board of directors is less than 3 years, this suggests a new board.
CTS Eventim AG & Co. KGaA operates in the leisure events market worldwide. It operates in two segments, Ticketing and Live Entertainment. The Ticketing segment produces, sells, brokers, distributes, and markets tickets for concerts, theatre, art, sports, and other events. It markets events (tickets) through eventim.de and using its network platform, EVENTIM.Net; in-house ticketing products through EVENTIM.Inhouse; sport ticketing products through EVENTIM.Tixx; and self-service products for event organizers through EVENTIM.Light, as well as provides a solution for ticket sales and admission control through EVENTIM.Access. This segment also operates EVENTIM.fanSALE, a resale portal where customers sell event tickets to other customers; and EVENTIM.Guide, an online leisure calendar that closes the gap between ticketing and leisure planning. The Live Entertainment segment plans, prepares, and executes tours and events, including music events and concerts, as well as markets music productions. This segment is also involved in the operation of venues. The company was formerly known as CTS EVENTIM AG and changed its name to CTS Eventim AG & Co. KGaA in May 2014. CTS Eventim AG & Co. KGaA is headquartered in Bremen, Germany.
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