Discounted Cash Flow Calculation for CPSE:RILBA using Excess Returns Model Model
The calculations below outline how an intrinsic value for Ringkjøbing Landbobank 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.
Ringkjøbing Landbobank's share price is below the future cash flow value, and at a moderate discount (> 20%).
Ringkjøbing Landbobank's share price is below the future cash flow value, but not 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
Ringkjøbing Landbobank's earnings available for a low price, and how does
this compare to other companies in the same industry?
Ringkjøbing Landbobank's earnings are expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).
Ringkjøbing Landbobank's revenue is expected to grow by 5.9% 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.
Ringkjøbing Landbobank'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
3/6, 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
Ringkjøbing Landbobank'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. John Bull Fisker serves as the Chief Executive Officer of Ringkjøbing Landbobank A/S since May 1, 2012. Mr. Fisker is a Member of the general management since May 1, 1999. Mr. Fisker was employed by the bank on May 1, 1995. He serves as the Chairman of Letpension A/S, Copenhagen. He serves as the Deputy Chairman at Bankdata, Fredericia, BI Asset Management Fondsmæglerselskab A/S, Copenhagen and BI Holding A/S, Copenhagen. He has been a Director of Totalkredit A/S since August 9, 2017. He serves as a Board member at following companies Totalkredit A/S, Copenhagen, PRAS A/S, Copenhagen, Bankpension, Copenhagen, AUHE Midtvest's Støttefond, Herning, PFA Pension A/S, Copenhagen, and Pensionstilskudsfonden for medarbejdere i Ringkjøbing Landbobank, Ringkøbing.
John's compensation has been consistent with company performance over the past year, both up more than 20%.
John's remuneration is about average for companies of similar size in Denmark.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Ringkjøbing Landbobank management team is about average.
CEO & Member of the General Management
GM & Member of the Management Board
General Manager & Member of the General Management
GM & Member of the Management Board
Executive assistant & Head of Investor Relations
Chief Internal Auditor
Head of Treasury
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Ringkjøbing Landbobank board of directors is less than 3 years, this suggests a new board.
Board of Directors
Gitte Sigersmunda Høgholm Vigsø
Employee Elected Director
Dan Junker Sørensen
Employee Elected Director
Who owns this company?
Recent Insider Trading
No 3 month individual insider trading information.
What Does Ringkjøbing Landbobank A/S's (CPH:RILBA) P/E Ratio Tell You?
We'll apply a basic P/E ratio analysis to Ringkjøbing Landbobank A/S's (CPH:RILBA), to help you decide if the stock is worth further research. … Check out our latest analysis for Ringkjøbing Landbobank How Do I Calculate Ringkjøbing Landbobank's Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Ringkjøbing Landbobank: P/E of 19.36 = DKK423.5 ÷ DKK21.87 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good?
Should Ringkjøbing Landbobank (CPH:RILBA) Be Disappointed With Their 84% Profit?
For example, long term Ringkjøbing Landbobank A/S (CPH:RILBA) shareholders have enjoyed a 84% share price rise over the last half decade, well in excess of the market return of around 32% (not including dividends). … During five years of share price growth, Ringkjøbing Landbobank achieved compound earnings per share (EPS) growth of 5.3% per year. … As it happens, Ringkjøbing Landbobank's TSR for the last 5 years was 107%, which exceeds the share price return mentioned earlier.
Does Ringkjøbing Landbobank A/S's (CPH:RILBA) CEO Salary Compare Well With Others?
This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does John Fisker's Compensation Compare With Similar Sized Companies. … According to our data, Ringkjøbing Landbobank A/S has a market capitalization of ø13b, and pays its CEO total annual compensation worth ø5.6m.
What You Should Know About Ringkjøbing Landbobank A/S’s (CPH:RILBA) Liquidity
As a small-cap bank stock with a market capitalisation of ø13b, Ringkjøbing Landbobank A/S’s (CPH:RILBA) risk and profitability are largely determined by the underlying economic growth of the DK regions in which it operates. … These reforms target banking regulations and intends to enhance financial institutions’ ability to absorb shocks resulting from economic stress which could expose banks like Ringkjøbing Landbobank to vulnerabilities. … Strong management of leverage and liquidity could place the bank in a protected position at the face of macro headwinds.
Should You Be Concerned About Ringkjøbing Landbobank A/S’s (CPH:RILBA) Risks?
As a small-cap bank with a market capitalisation of ø12b, Ringkjøbing Landbobank A/S’s (CPH:RILBA) profit and value are directly affected by economic activity. … Risk associate with repayment is measured by the level of bad debt which is an expense written off Ringkjøbing Landbobank’s bottom line. … Today we will analyse Ringkjøbing Landbobank’s level of bad debt and liabilities in order to understand the risk involved with investing in the bank.
Is Ringkjøbing Landbobank A/S (CPH:RILBA) A Smart Pick For Income Investors?
Historically, Ringkjøbing Landbobank A/S (CPH:RILBA) has been paying a dividend to shareholders. … Does Ringkjøbing Landbobank tick all the boxes of a great dividend stock? … See our latest analysis for Ringkjøbing Landbobank
Don't Sell Ringkjøbing Landbobank A/S (CPH:RILBA) Before You Read This
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Ringkjøbing Landbobank has a price to earnings ratio of 17.54, based on the last twelve months. … How Do I Calculate Ringkjøbing Landbobank's Price To Earnings Ratio
Update: Ringkjøbing Landbobank Stock Gained 63% In The Last Five Years
To wit, the Ringkjøbing Landbobank share price has climbed 63% in five years, easily topping the market return of 40% (ignoring dividends). … Over half a decade, Ringkjøbing Landbobank managed to grow its earnings per share at 7.9% a year. … This EPS growth is slower than the share price growth of 10% per year, over the same period.
Is Ringkjøbing Landbobank A/S's (CPH:RILBA) Future Growth Already Accounted For In Today's Price?
Ringkjøbing Landbobank A/S (CPH:RILBA) is considered a high-growth stock, but its last closing price of DKK352.5 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … View our latest analysis for Ringkjøbing Landbobank? … According to the analysts covering the company, the following few years should bring about good growth prospects for Ringkjøbing Landbobank
Is Ringkjøbing Landbobank A/S's (CPH:RILBA) CEO Being Overpaid?
This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … See our latest analysis for Ringkjøbing Landbobank? … How Does John Fisker's Compensation Compare With Similar Sized Companies?
Ringkjøbing Landbobank A/S provides various banking products and services in Denmark. It offers various deposits, and loans and guarantees, as well as securities trading and custody, asset management, foreign exchange, and payment handling services. The company was founded in 1886 and is headquartered in Ringkøbing, Denmark.
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