L.P.N. Development Public Company Limited and its affiliated companies carry on the business of real estate development aiming to sell and rent the developed projects, as offices and residential condominiums located in the Central Business District (CBD) of Bangkok and neighbouring provinces.
The last earnings update was 10 days ago.
Discounted Cash Flow Calculation for BST:9LE 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.
BST:9LE 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.
L.P.N. Development's share price is below the future cash flow value, but not at a moderate discount (< 20%).
L.P.N. Development'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
L.P.N. Development's earnings available for a low price, and how does
this compare to other companies in the same industry?
L.P.N. Development's earnings are expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).
L.P.N. Development's revenue is expected to grow by 7.1% 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.
L.P.N. Development'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
L.P.N. Development's finances.
The net worth of a company is the difference between its assets and liabilities.
L.P.N. Development is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
L.P.N. Development's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
L.P.N. Development'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.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 3.3x 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.
TENURE AS CEO
Mr. Opas Sripayak serves as Chief Executive Officer of L.P.N. Development Public Company Limited (“L.P.N. Development”) since January 11, 2018 and Managing Director and Executive Director since March 30, 2018. Mr. Sripayak was the Executive Director and Managing Director of L.P.N. Development from April 2006 to January 11, 2018. He was a Director of L.P.N. Development since 2006. He has been the Director of Lumpini Property Service and Care Co., Ltd. since 2011. He was the Assistant Managing Director and Manager of Research and Development Department at Lumpini Property Management Co. He also served as Manager of Sales Department and Customer Services Department at L.P.N. Development. He complete his training in Finance for Non-Finance Directors (FND 24/2005) and Directors Certification Program (DCP 71/2006) from the Thai Institute of Directors Association (IOD). He serves as Director of L.P.N. Development Public Company Limited since 2006. He earned his Bachelor of Architecture from Silpakorn University and Mini M.B.A. from Thammasat University.
Opas's compensation has been consistent with company performance over the past year.
Opas's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the L.P.N. Development management team is less than 2 years, this suggests a new team.
CEO, MD & Executive Director
CFO & Executive Director
Deputy MD & Executive Director
Deputy MD & Executive Director
Executive Director & Chief Strategy Officer
Investor Relations Manager
Director of Legal Department
Deputy Managing Director of Sales Management Department
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the L.P.N. Development board of directors is over 10 years, this suggests they are a seasoned and experienced board.
L.P.N. Development Public Company Limited and its affiliated companies carry on the business of real estate development aiming to sell and rent the developed projects, as offices and residential condominiums located in the Central Business District (CBD) of Bangkok and neighbouring provinces. These offices and residential condominiums initially developed are dominated by high-rise and huge buildings.
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