Discounted Cash Flow Calculation for CPSE:LUXOR B using Excess Returns Model Model
The calculations below outline how an intrinsic value for Investeringsselskabet Luxor 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.
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
Investeringsselskabet Luxor's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Investeringsselskabet Luxor has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Mortgage industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Investeringsselskabet Luxor's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Investeringsselskabet Luxor's earnings growth to the Denmark market average as no estimate data is available.
Unable to compare Investeringsselskabet Luxor's revenue growth to the Denmark market average as no estimate data is available.
Unable to determine if Investeringsselskabet Luxor is high growth as no earnings estimate data is available.
Unable to determine if Investeringsselskabet Luxor 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.
Investeringsselskabet Luxor'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
5/6, 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
Investeringsselskabet Luxor'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. Jannik Rolf Larsen has been Chief Executive Officer and Member of Executive Board at Investeringsselskabet Luxor A/S since June 1, 2016 and June 1, 2015 respectively and also served as its Manager.
Insufficient data for Jannik to compare compensation growth.
Jannik's remuneration is lower than average for companies of similar size in Denmark.
Investeringsselskabet Luxor A/S is a principal investment firm. It seeks to invest in mortgages deeds, corporate bonds, and rental properties. It offers mortgages on single-family houses, freehold flats, holiday houses, disused farms, residential and business properties, farms, rental properties, trade and industry, and other properties; invests primarily in foreign corporate with senior status; and provides property for rent, including offices, shops, and production/warehouses. Investeringsselskabet Luxor A/S was founded in 1973 and is based in Copenhagen, Denmark.
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