Discounted Cash Flow Calculation for DB:6DX 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.
DB:6DX 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.
Dexerials's share price is below the future cash flow value, and at a moderate discount (> 20%).
Dexerials'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
Dexerials's earnings available for a low price, and how does
this compare to other companies in the same industry?
Dexerials's earnings are expected to grow significantly at over 20% yearly.
Dexerials's revenue is expected to grow by 4.7% 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.
Dexerials'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. Yoshihisa Shinya serves as Automotive Solutions Business Unit Head, President and Executive Officer at Dexerials Corporation since January 2019. Mr. Shinya served as Product Development Division Head, Automotive Devices Business Group Head and Senior Executive Officer at Dexerials Corporation from April 15, 2017 until 2019. Mr. Shinya served as an Executive Officer, Head of Product Development Division, Head of Business Unit Group Deputy and Deputy Head of Corporate R&D Division at Dexerials Corporation since April 2, 2016 until April 15, 2017. Mr. Shinya served as an Executive Officer of Optical Solution Products Division of Dexerials Corporation. He served as Executive Officer, Product Development Division Head, Business Unit Group Deputy-Head, Corporate R&D Division Deputy-Head until April 2016. Mr. Shinya Executive Officer, Optical Solutions Products Business Unit Head until April 2014. Mr. Shinya served as Deputy Head, Optical solutions Products Business Unit of Dexerials Corporation until September 2012. He served as General Manager, Product Development Department, Optical Solutions Products Business Division until April 2010. He served as General Manager, Product Development Department, Advanced Materials Business Unit, Sony Chemical & Information Device Corporation until April 2009. He served as General Manager, Product Development Department 2, Conductive Materials Business Unit until April 2007. He served as General Manager, Development Department, Optical Material Business unit until April 2005. He Graduated in Functional Materials Engineering from Graduate School Of Industrial Technology, Kinki University in March 1995.
Insufficient data for Yoshihisa to compare compensation growth.
Insufficient data for Yoshihisa 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 tenure for the Dexerials management team is about average.
Automotive Solutions Business Unit Head
CFO, Managing Executive Officer & Director
Head of Legal & Intellectual Property
Head of Global Sales
Head of Production & Quality Division and Senior Executive Officer
Head of Corporate Planning & Control Division
Head of Business Innovation Division & Senior Executive Officer
Electronic Components & Environment Solutions Business Unit Head and Executive Officer
Optical Solutions Business Unit Head & Executive Officer
Board of Directors Tenure
Average tenure of the
board of directors in years:
The tenure for the Dexerials board of directors is about average.
Board of Directors
CFO, Managing Executive Officer & Director
Senior Managing Executive Officer and Officer in charge of Internal Audit & Representative director
Dexerials Corporation manufactures and sells electronic components, bonding materials, optics materials, and other products in Japan. It offers anisotropic conductive films, industrial adhesives, double and single coated tapes, thermal conductive sheets, and architectural window films; optical elasticity resins, inorganic wave plates, optical films, inorganic polarizers, and UV curable resins for optical disks; surface mounted type fuses and water treatment agents for inorganic effluent; and solar cell conductive films for photovoltaic modules. The company was formerly known as Sony Chemical & Information Device Corporation and changed its name to Dexerials Corporation in September 2012. Dexerials Corporation was founded in 1962 and is headquartered in Tokyo, Japan.
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