Discounted Cash Flow Calculation for HLSE:FIA1S 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.
HLSE:FIA1S DCF 1st Stage: Next 10 year cash flow forecast
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.
Finnair Oyj's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Finnair Oyj'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
Finnair Oyj's earnings available for a low price, and how does
this compare to other companies in the same industry?
Finnair Oyj's earnings are expected to grow by 0.3% yearly, however this is not considered high growth (20% yearly).
Finnair Oyj's revenue is expected to grow by 4.5% 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.
Finnair Oyj'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
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
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. Topi Manner has been Supervisory Board Member at Ilmarinen Mutual Pension Insurance Company since March 28, 2019. He has been Chief Executive Officer at Finnair Oyj since January 01, 2019. Mr. Manner had been the President of Nordea Bank Finland Plc from September 01, 2015 to 2018. Mr. Manner had been the Head of Personal Banking at Nordea Bank Abp from July 1, 2016 to 2018 and was its Executive Vice President since July 7, 2016 until 2018. Mr. Manner has been a Member of Nordea’s Group Executive Management team since 2016. Mr. Manner served as Chief Executive Officer of Finland at Nordea Bank AB since 2015 and served as its Executive Vice President from December 2012 to September 2015. Mr. Manner served as Head of Segment Household & Group Marketing at Nordea Bank AB from 2009 to 2011. Mr. Manner served as the Head of Banking Finland & Baltics at Nordea Bank AB from 2012 to 2016. He served as Head of Segments at Nordea from 2011 to 2012. He served as Head of Segment Household at Nordea from 2008 to 2009. Mr. Manner served as Deputy President of Nordea Bank Finland Plc from January 03, 2013 to August 31, 2015. He was Director of Nordea Finans Sverige AB (publ). He serves as a Member of the Board of the Finnish Chamber of Commerce. He serves as a Member of the Board of the International Chamber of Commerce in Finland. He serves as a Member of Governing Council of the Inter-Alpha Group of Banks. He completed Inter-Alpha Banking Programme from INSEAD, France. He completed JOKO Executive Education from Helsinki School of Economics and Business Administration, Finland. He holds MSc in International Business/Trade/Commerce from Turku School of Economics and Business Administration, Finland.
Insufficient data for Topi to compare compensation growth.
Insufficient data for Topi to establish whether their remuneration is reasonable compared to companies of similar size in Finland.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Finnair Oyj management team is about average.
CFO & Member of Executive Board
Chief Executive Officer
Sami Kalle Sarelius
Senior VP of Corporate Communications & Corporate Responsibility and Member of The Executive Board
Senior VP of Human Resources & Member of Executive Board
Interim Head of Commercial Unit & Member of Executive Board
Senior VP of Customer Experience & Member of Executive Board
Senior VP of Operations & Member of Executive Board
Chief Digital Officer & Member of Executive Board
Vice President of Group Accounting and Taxation
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Finnair Oyj board of directors is less than 3 years, this suggests a new board.
Board of Directors
Chairman of the Board
Chairman of the Finnairin Teknisetry
Representative Member of Management Board & Chairman of The Finnairin Insinooritry
Representative Member of Management Board & Chairman of The Finnairin Tekniset Ry
Should Finnair Oyj’s (HEL:FIA1S) Weak Investment Returns Worry You?
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Is Finnair Oyj (HEL:FIA1S) A Smart Pick For Income Investors?
A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Historically, Finnair Oyj (HEL:FIA1S) has been paying a dividend to shareholders. … Let's dig deeper into whether Finnair Oyj should have a place in your portfolio.
Do You Like Finnair Oyj (HEL:FIA1S) At This P/E Ratio?
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Finnair Oyj has a price to earnings ratio of 7.83, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Estimating The Fair Value Of Finnair Oyj (HEL:FIA1S)
by taking the expected future cash flows and discounting them to their present value. … discounted cash flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.
How Much Of Finnair Oyj (HEL:FIA1S) Do Institutions Own?
If you want to know who really controls Finnair Oyj (HEL:FIA1S), then you'll have to look at the makeup of its share registry. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … It has a market capitalization of €954m, which means it would generally expect to see some institutions on the share registry.
Finnair Oyj (HEL:FIA1S) Has Attractive Fundamentals
Finnair Oyj (HEL:FIA1S) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … that has been able to sustain great financial health over the past
Finnair Oyj (HEL:FIA1S): Time For A Financial Health Check
While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … So, understanding the company's financial health becomes. … Here are few basic financial health checks you should consider before taking the plunge.
Estimating The Fair Value Of Finnair Oyj (HEL:FIA1S)
by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model
If you want to know who really controls Finnair Oyj (HEL:FIA1S), then you'll have to look at the makeup of its share registry. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … institutions are noticeable on the share registry.
Finnair Oyj provides passenger and cargo airline services to various destinations between Asia and Europe. It also offers tours packages under its Aurinkomatkat and Finnair Holidays brands. As of December 31, 2018, the company operated a fleet of 57 aircraft, which included 27 owned by Finnair Aircraft Finance Oy, 22 under operating lease, and 8 on finance lease. In addition, it provides technical, catering, and financial business services. The company was founded in 1923 and is based in Vantaa, Finland.
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