Discounted Cash Flow Calculation for LSE:0RLA using Excess Returns Model Model
The calculations below outline how an intrinsic value for Banco BPM Società per Azioni 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
Banco BPM Società per Azioni
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
Banco BPM Società per Azioni's
is considered below, and whether this is a fair price.
Price based on past earnings
Banco BPM Società per Azioni's earnings available for a low price, and how does
this compare to other companies in the same industry?
Banco BPM Società per Azioni's earnings are expected to grow significantly at over 20% yearly.
Banco BPM Società per Azioni's revenue is expected to grow by 16.7% 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.
Banco BPM Società per Azioni'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.
Banco BPM Società per Azioni
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.
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
Banco BPM Società per Azioni'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. Giuseppe Castagna serves as a Director of ALETTI & C. Banca di Investimento Mobiliare SpA since 2018. Mr. Castagna was Managing Director and General Manager of Banca Popolare di Milano S.c.ar.l from January 2014 to December 2016. Since January 2017, he has been Chief Executive Officer of Banco BPM S.p.A. and serves as its Director. Previously, he served in prominent executive positions with the Intesa SanPaolo banking Group, where he worked from 1981 to 2013. In particular: In 2003 he became the Head of the Large Corporate & Structured Finance Service of the Corporate Division of Intesa Sanpaolo S.p.A., From 2005 to 2009 he was the Head of the Large & Mid Corporate Department of the Corporate Division of Intesa Sanpaolo S.p.A., In 2008 he was the Coordinator of the Foreign Network Department of the Corporate and Investment Banking Division of Intesa Sanpaolo S.p.A., In 2009 he was in charge of Corporate Relationship Management for the Corporate and Investment Banking Division of Intesa Sanpaolo S.p.A., From 2009 to 2013 he was the Regional Director for Campania, Basilicata, Calabria, Puglia, and the General Manager of Banco di Napoli S.p.A., and in 2011 he was also appointed as the Regional Director for Sicily, From 2012 to 2013 he managed the Banca dei Territori Division of the Intesa Sanpaolo group, directly overseeing over 20 Network Banks of the group and approximately 47,000 employees, and he served as General Manager of the Intesa SanPaolo Group (maintaining, ad interim, his position as General Manager of Banco di Napoli).Between 2003 and 2013, he also held the offices as member of the Board of Directors of Mediofactoring S.p.A.; Administrateur of Société Européenne de Banque S.A. Luxembourg; member of the Board of Directors of Leasint S.p.A.; member of the Management Board of SRM – Studi e Ricerche per il Mezzogiorno; member of the Board of Directors of Banco di Napoli S.p.A., member of the Board of Directors of IMI Fondi Chiusi SGR S.p.A.; Chairman of the ABI Regional Commission of Campania, member of the Board of Directors of Intesa Sanpaolo Private Banking S.p.A. and member of the Board of Directors of Agriventure S.p.A.
Insufficient data for Giuseppe to compare compensation growth.
Insufficient data for Giuseppe to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Domenico De Angelis
CEO & Director
Head of Finance
Head of Operations
Head of Administration & Financial Statements
Head of Investor Relations
Maurizio NigroAngelo Giudice
Head of Compliance
Head of Legal & Regulatory Affairs
Head of Communication
Board of Directors Tenure
Average tenure and age of the
Banco BPM Società per Azioni
board of directors in years:
The average tenure for the Banco BPM Società per Azioni board of directors is less than 3 years, this suggests a new board.
Banco BPM Società per Azioni, through its subsidiaries, provides banking and financial services to household and business customers in Italy. The company operates through Commercial Network; Investment & Private Banking, Asset Management; Leasing; and Corporate Centre and Other segments. It offers current accounts, demand deposits, time deposits, repurchase agreements, loans and other payables, certificates of deposit, and savings accounts; and short-term loans, medium/long term loans, mortgage loans, and tourism loans. The company also provides a range of insurance products; prepaid cards; and collection and payment, e-billing, remote banking, and business Web portal services. In addition, it is involved in investment banking and asset management activities that include transactions in over the counter derivatives, trading in listed securities and derivatives, capital market transactions, and investment management and private banking, as well as leasing business. The company operates approximately 2,500 branches. The company was formerly known as Banco Popolare Societa Cooperativa Scarl and changed its name to Banco BPM Società per Azioni in January 2017. Banco BPM Società per Azioni is headquartered in Verona, Italy.
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