Discounted Cash Flow Calculation for BST:NYZ 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:NYZ 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.
Novacyt's share price is below the future cash flow value, and at a moderate discount (> 20%).
Novacyt'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
Novacyt's earnings available for a low price, and how does
this compare to other companies in the same industry?
Novacyt's earnings are expected to grow significantly at over 20% yearly.
Novacyt's revenue is expected to grow by 15.7% 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.
Novacyt'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.
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. Graham David Mullis has been the Chief Executive Officer of Novacyt Société Anonyme since 2014. Mr. Mullis served as the Chief Executive Officer of Lab21 Ltd. He served as the President of ClearLab International, a subsidiary of 1 800 Contacts Inc., from 2002 to November 20, 2006 and its Managing Director since 2002. He led the expansion of 1-800 CONTACTS overseas as well as leading Clearlab International. He has more than 10 years experience in leading medical device businesses and 8 years in the contact lens industry. He served as Managing Director of Biocompatibles Hydron and sold the business to CooperVision for $125 million. He launched the Proclear range of contact lenses at Biocompatibles, which is now a major product line for CooperVision , the fourth largest contact lens manufacturer in the world. He serves as a Director of Novacyt Société Anonyme. He served as a Director of Clearlab Pte Ltd. Mr. Mullis holds a Bachelors Degree in Biochemistry & Physiology from Southampton University and an MBA from Warwick Business School.
Insufficient data for Graham to compare compensation growth.
Insufficient data for Graham to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Novacyt management team is less than 2 years, this suggests a new team.
CEO & Director
CFO, Company Secretary & Director
Corporate & Investor Relations Manager
Group HR Manager
Managing Director of Lab21 Products Division
Managing Director of NOVAprep & Lab21 Services
Managing Director of Primer Design
Chief Executive Officer of Business Development
Group Financial Controller
RA & QA Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Novacyt board of directors is less than 3 years, this suggests a new board.
Novacyt S.A. develops and sells diagnostic products for cancer and infectious diseases. The company’s diagnostic products are used in liquid based cytology, oncology, microbiology, haematology, and serology testing. It offers NovaPrep, a liquid based cytology solution that is utilized in the diagnosis of cervical cancer; and clinical laboratory testing services to clinicians, healthcare providers, and patients. The company also develops, manufactures, and distributes diagnostic products for clinical and food laboratories; and manufactures and markets vitro diagnostic tests, as well as diagnostic reagents, test kits, and blood grouping reagents. It serves hospitals and large corporates. The company was founded in 2006 and is based in Vélizy-Villacoublay, France.
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