Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Creative Technology. This is due to cash flow or dividend data being
unavailable. The share price is
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
Creative Technology's earnings available for a low price, and how does
this compare to other companies in the same industry?
Creative Technology's earnings are expected to grow by 15.1% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Creative Technology 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.
Creative Technology'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
2/6, 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
Creative Technology's finances.
The net worth of a company is the difference between its assets and liabilities.
Creative Technology is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Creative Technology's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Creative Technology'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.
Low level of unsold assets.
Creative Technology has no debt, it does not need to be covered by short term assets.
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. Wong Hoo Sim founded Creative Technology Ltd., in 1981 and has been its Chairman and Chief Executive Officer since 1981. Mr. Sim serves as the Chairman of US-based THX Ltd., well known for setting sound standards for audio systems worldwide. Mr. Sim serves as a Director of United Overseas Bank and its subsidiary, Far Eastern Bank. He has been a Director of Creative Technology Ltd., since 1981. He served as a Director of Overseas Union Trust Ltd. Mr. Sim served as a Non-Executive Director of Spice i2i Limited from October 1999 to May 23, 2003. He served as a Director of Overseas Union Bank Ltd. since March 14, 2000. Mr. Sim served as an Independent Non-Executive Director of Industrial & Commercial Bank Ltd., since March 24, 2000. He served as Non-Executive Director of BT Frontline until September 30, 2003. He served as a Non Executive Director of Frontline Technologies Corporation Ltd. until September 30, 2003. Mr. Sim received numerous awards and accolades in the course of his career. The more notable ones include being honored as one of Fortune Magazine 's Asia 's Businessman Of the Year in 2001; twice awarded as Businessman of the Year in Singapore in 1992 and 1998 by Business Times and DHL; and Person of the Year in 2003 in the field of IT by the Singapore Computer Society. Mr. Sim holds a Diploma in Electronics & Electrical Engineering from Ngee Ann Polytechnic in Singapore.
Insufficient data for Wong to compare compensation growth.
Insufficient data for Wong to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Keh Long Ng
CFO & Company Secretary
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Creative Technology board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Creative Technology Ltd, together with its subsidiaries, designs, manufactures, and distributes digital entertainment products worldwide. The company primarily offers digitized sound and video boards, computers, and related multimedia and personal digital entertainment products. It also provides amplifiers, speakers, sound cards, gaming headsets, headphones, peripherals, accessories, software products, sound blasters, Web cameras, mice and keyboards, E-MU/creative professional products, and others. In addition, the company offers multimedia solutions for personal computers and personal digital entertainment products. It markets its products and solutions to consumers and system integrators through a distribution network, including traditional marketing channels, original equipment manufacturers, and the Internet. The company was founded in 1981 and is headquartered in Singapore.
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.