Discounted Cash Flow Calculation for DB:3T4 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.
DB:3T4 DCF 1st Stage: Next 5 year cash flow forecast
The current share price of
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
is considered below, and whether this is a fair price.
Price based on past earnings
Teradata's earnings available for a low price, and how does
this compare to other companies in the same industry?
Teradata's earnings are expected to grow significantly at over 20% yearly.
Teradata's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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.
Teradata'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. Oliver Ratzesberger has been President and Chief Executive officer of Teradata Corporation since January 15, 2019. He was Chief Operating Officer of Teradata Corporation since February 5, 2018 until January 15, 2019 and has been its Director November 19, 2018. Previously, he was Chief Product Officer and Executive Vice President of Teradata Corporation from August 08, 2016 to February 5, 2018. Mr. Ratzesberger served as the President of Teradata Labs at Teradata Corporation since June 2015 until August 08, 2016. Mr. Ratzesberger provides visionary direction for all research, development and sales support activities related to Teradata integrated data warehousing, big data analytics and associated solutions. He led the software teams for Teradata Labs, including the Teradata Database, Aster, Client tools and Viewpoint as well as Hadoop integration. Joining Teradata in early 2013, he has a powerful and impressive background in leading big data analytics initiatives and technology transformation for Fortune 500 organizations. For example, Oliver drove a large analytics effort to consolidate systems into a newly redesigned Unified Data Architecture. He has a successful background in driving analytics culture and advancing the value of high-volume and high-velocity analytics solutions. He spent seven years at eBay, where he was responsible for its data warehouse and big data platforms. During his tenure at eBay, he led eBay’s expansion of analytics and was responsible for the co-development of the Extreme Data Appliance as part of eBay's Singularity project, leading Hadoop engineering teams and driving the integration of Teradata and Hadoop. He worked for startups in software development and IT. In addition he has an extensive background in Open Source software development and has been an active contributor and committer to various projects. In 1996, he joined NCR Corporation as a senior consultant for data warehousing in Vienna, Austria – and in 1999 moved to Orange County, CA where he led professional service engagements for Telecom and eBusiness. As director of professional services, he was responsible for projects at Verizon, ATT, T-Mobile, eBay and Excite, among others. Mr. Ratzesberger earned his Engineering Degree in Electronics and Telecommunications from HTL Steyr in Austri and is a graduate of Harvard Business School’s Advanced Management Program.
Oliver's compensation has increased in line with Teradata recently becoming profitable.
Oliver's remuneration is about 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 Teradata management team is less than 2 years, this suggests a new team.
Executive VP & CFO
Chief Services Officer
Chief Technology Officer
Vice President of Investor Relations
Chief Marketing Officer
Chief Corporate & Governance Counsel and Assistant Secretary
Chief Product Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Teradata board of directors is about average.
Teradata Corporation provides analytic data solutions and related services worldwide. The company operates through Americas Data and Analytics, and International Data and Analytics segments. Its analytic data solutions comprise software, hardware, and related business consulting and support services. The company offers Teradata IntelliCloud, an as-a-service solution for the management of performance, security, availability and operations; Teradata Analytics Platform, an integrated data warehouse engine that allow access to the analytic functions and analytic engines; Business Analytics Consulting and Solutions, which engages with business users through solution-based selling; and Ecosystem Architecture Consulting that enable customers to build an optimized analytical ecosystems. It serves various industries comprising communications, ecommerce, financial services, government, gaming, healthcare, insurance, manufacturing, media and entertainment, oil and gas, retail, travel and transportation, and utilities. Teradata Corporation was founded in 1979 and is headquartered in San Diego, California.
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