Discounted Cash Flow Calculation for BST:TD8 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:TD8 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.
Triad Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
Triad Group'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
Triad Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
Triad Group's earnings are expected to grow by 8.5% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Triad Group is high growth as no revenue estimate data is available.
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.
Triad Group'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.
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. Adrian Leer is Managing Director at Triad Group plc since May 2018. Mr. Leer was Commercial Director of Triad Group plc since March 03, 2015 until May 2018. Mr. Leer initially joined Triad in 2009 in a consultative capacity, providing advice to the business regarding its fledgling geospatial product, Zubed and helping to secure significant wins with major clients. In 2010, Mr. Leer became General Manager of Zubed Geospatial during which time he developed a robust product strategy for the Zubed offering. In 2012, Mr. Leer's remit expanded, becoming Commercial Director of Triad Consulting & Solutions. In this role, Mr. Leer's focus was to improve the consultancy pipeline and to drive staff utilisation and fee income. As part of a streamlining of the Group's management structure in 2014, Mr. Leer also assumed responsibility for the Resourcing part of the business where the focus was also to improve the pipeline, margins and fee income. Before Triad, Mr. Leer was Group IT Director for the Pettifer Group of Companies. Prior to that, he held a number of leadership roles at the global FMCG business, Avon Products. This included being their IT Director for the Western Europe, Middle East & Africa regions and Head of the UK Distribution Centre. He has been an Executive Director at Triad Group Plc since March 03, 2015. Mr. Leer holds a Master's Degree in Business Administration from the Open University.
Adrian's compensation has increased by more than 20% in the past year.
Adrian's remuneration is about average for companies of similar size in Germany.
MD & Executive Director
Board of Directors Tenure
Average tenure of the
board of directors in years:
The tenure for the Triad Group board of directors is about average.
Triad Group Plc provides IT consultancy, solution, and resourcing services to the public and private sectors primarily in the United Kingdom. The company offers consulting and advisory; staffing, resourcing, and recruitment; development and engineering; software and product design; program and project delivery; and support, operations, and maintenance services. Triad Group Plc was founded in 1988 and is based in Godalming, the United Kingdom.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.