Discounted Cash Flow Calculation for CPSE:DJS using Excess Returns Model Model
The calculations below outline how an intrinsic value for Den Jyskerekasse is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
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.
Den Jyskerekasse's share price is below the future cash flow value, and at a moderate discount (> 20%).
Den Jyskerekasse'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
Den Jyskerekasse's earnings available for a low price, and how does
this compare to other companies in the same industry?
Den Jyskerekasse's earnings are expected to grow by 12.4% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Den Jyskerekasse 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.
Den Jyskerekasse'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
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Fundamentally a bank's business is based upon borrowing and lending money, for
this reason they typically have high levels of debt and we analyse them
This treemap shows a more detailed breakdown of
Den Jyskerekasse'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.
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. Claus Erik Petersen serves as Chief Executive Officer and Member of the Executive Board of Den Jyske Sparekasse A/S. Mr. Petersen serves as Chairman of DJS Erhvervsinvest A/S, Foreningen Lokale Pengeinstitutter, PRAS A/S. Mr. Petersen served as Managing Director of Totalkredit A/s since March 20, 2012. He is Deputy Chairman of Totalkredit A/s since 2012. He serves as Chairman of DjS Leasing A/S and Finanshuset Farsø Pantebrevsselskab A/S. He serves as Director of Director of Nykredit A/S; Borgergade 3 A/S; Den Jyske Sparekasses Støttefond; DJS Leasing A/S; Finance Denmark; Finanshuset Farsø Pantebrevsselskab A/S; FR I af 16. September 2015 A/S; HN Invest Tyskland 1 A/S; Spar Pantebrevsinvest A/S; and Værdiansættelsesrådet . He is member of the Executive Board of Borgergade 3 A/S.
Insufficient data for Claus to compare compensation growth.
Insufficient data for Claus to establish whether their remuneration is reasonable compared to companies of similar size in Denmark.
CEO & Member of Executive Board
Manager & Member of the Executive Board
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Den Jyskerekasse board of directors is about average.
Do Institutions Own Shares In Den Jyske Sparekasse A/S (CPH:DJS)?
A look at the shareholders of Den Jyske Sparekasse A/S (CPH:DJS) can tell us which group is most powerful. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … We also tend to see lower insider ownership in companies that were previously publicly owned.
Den Jyske Sparekasse A/S operates as a savings bank. The company offers savings accounts and various deposits; car, housing, and other loans; and pension, insurance, investment, payment, financing, and risk management services. It serves private customers, and small and medium-sized businesses. The company operates through a network of 19 branches. Den Jyske Sparekasse A/S was founded in 1872 and is headquartered in Grindsted, Denmark.
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.