Discounted Cash Flow Calculation for DB:LG7 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:LG7 DCF 1st Stage: Next 10 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
Lagercrantz Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
Lagercrantz Group's earnings are expected to grow by 11.9% yearly, however this is not considered high growth (20% yearly).
Lagercrantz Group's revenue is expected to grow by 9% 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.
Lagercrantz 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
4/6, 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
Lagercrantz Group's finances.
The net worth of a company is the difference between its assets and liabilities.
Lagercrantz Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Lagercrantz Group's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Lagercrantz Group'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.
Lagercrantz Group 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. Jorgen Wigh, M.Sc. Econ., is the founder of PriceGain. Mr. Wigh served as the President and Chief Executive Officer at Lagercrantz Group AB (publ) since February 1, 2006. Prior to Lagercrantz, he was employed at PriceGain, a consulting company within pricing and revenue management. He served as an Executive Vice President at Bergman & Beving Group, from which Lagercrantz was spun off in 2001. He was an Investment Manager at Spira Invest. He has experience in the venture-capital industry, from McKinsey & Co and served as its management consultant. He has been the Chairman of the Board and Independent Director at Momentum Group AB (publ) since 2016. He has been Director of Lagercrantz Group AB (publ) (also known as Lagercrantz Group Aktiebolag) since 2006. He serves as a Director at Elpress AB, Asept International AB, STARGO AB and a number of other subsidiaries in the Lagercrantz Group. He served as Director of Bergman & Beving Holding AB. Mr. Wigh holds Bachelor of Science in Economics from the Stockholm School of Economics. He also holds M.Sc. Econ.
Jörgen's compensation has been consistent with company performance over the past year.
Jörgen'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 Lagercrantz Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Executive VP & Head of Business Development
Vice President of Communications
Vice President of Business Development
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Lagercrantz Group board of directors is about average.
Board of Directors
Chairman of the Board
Who owns this company?
Recent Insider Trading
More shares have been bought than sold by Lagercrantz Group insiders in the past 3 months, but not in substantial volumes.
Lagercrantz Group AB (publ) operates as a technology company in the Europe, China, and the United states. The company operates through four divisions: Electronics, Mechatronics, Communications, and Niche Products. The Electronics division offers special products in embedded electronics, industrial wireless communication, RFID, and light controls. The Mechatronics division provides electric connections systems, electric installation materials, electric and electro-mechanical components, and wiring harness for manufacturing industry, energy generation and electricity distribution sectors. The Communications division offers products, systems, services, and support in the areas of network access, digital image transmission/technical security, and access products, as well as control products/systems. The Niche Products division produces and sells products for producers of consumer packaged foodstuffs, medicines and toys. Lagercrantz Group AB (publ) was founded in 1906 and is based in Stockholm, Sweden.
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