Discounted Cash Flow Calculation for BME:YZPS using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Zaragoza Properties SOCIMI
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.
BME:YZPS DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
Zaragoza Properties SOCIMI
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
Zaragoza Properties SOCIMI's
is considered below, and whether this is a fair price.
Price based on past earnings
Zaragoza Properties SOCIMI'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 Zaragoza Properties SOCIMI 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 REITs industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Zaragoza Properties SOCIMI
expected to grow at an
Unable to compare Zaragoza Properties SOCIMI's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Zaragoza Properties SOCIMI's earnings growth to the Spain market average as no estimate data is available.
Unable to compare Zaragoza Properties SOCIMI's revenue growth to the Spain market average as no estimate data is available.
Unable to determine if Zaragoza Properties SOCIMI is high growth as no earnings estimate data is available.
Unable to determine if Zaragoza Properties SOCIMI 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.
Zaragoza Properties SOCIMI'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.
Zaragoza Properties SOCIMI
has a total score of
0/6, 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
Zaragoza Properties SOCIMI's finances.
The net worth of a company is the difference between its assets and liabilities.
Zaragoza Properties SOCIMI is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Zaragoza Properties SOCIMI's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Zaragoza Properties SOCIMI'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.
Zaragoza Properties SOCIMI has negative shareholder equity (liabilities exceed assets) therefore debt is not 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.
The Zaragoza Properties SOCIMI (BME:YZPS) Share Price Is Up 91% And Shareholders Are Holding On
Just take a look at Zaragoza Properties SOCIMI, S.A. … View our latest analysis for Zaragoza Properties SOCIMI Zaragoza Properties SOCIMI isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. … You could get a better understanding of Zaragoza Properties SOCIMI's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
How To Look At Zaragoza Properties SOCIMI, S.A. (BME:YZPS)
real estate investment trust (REIT) based in Madrid, Spain. … REITs are basically a portfolio of income-producing real estate investments, which are owned and operated by management of that trust company. … They have to meet certain requirements in order to become a REIT, meaning they should be analyzed a different way.
Why You Shouldn't Look At Zaragoza Properties SOCIMI, S.A.'s (BME:YZPS) Bottom Line
The structure of YZPS is unique and it has to adhere to different requirements compared to other non-REIT stocks. … A common financial term REIT investors should know is Funds from Operations, or FFO for short, which is a REIT's main source of income from its portfolio of property, such as rent … FFO is a cleaner and more representative figure of how much YZPS actually makes from its day-to-day operations, compared to net income, which can be affected by one-off activities or non-cash items such as depreciation
Does Zaragoza Properties Socimi SA (BME:YZPS) Go Up With The Market?
Based on this beta value, YZPS appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market. … However, this is the opposite to what YZPS’s actual beta value suggests, which is lower stock volatility relative to the market. … Depending on the composition of your portfolio, low-beta stocks such as YZPS is valuable to lower your risk of market exposure, in particular, during times of economic decline.
How Should You Analyze REIT Stock Zaragoza Properties Socimi SA (BME:YZPS)?
BME:YZPS Historical Debt Mar 14th 18 In order to understand whether YZPS has a healthy balance sheet, we have to look at a metric called FFO-to-total debt. … This tells us how long it will take YZPS to pay off its debt using its income from its main business activities, and gives us an insight into YZPS’s ability to service its borrowings. … This would take YZPS 33 years to pay off using just operating income, which is a long time, and risk increases with time.
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