Discounted Cash Flow Calculation for AIM:RBGP 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.
AIM:RBGP DCF 1st Stage: Next 10 year cash flow forecast
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
Rosenblatt Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
Rosenblatt Group's earnings are expected to grow by 10% yearly, however this is not considered high growth (20% yearly).
Rosenblatt Group's revenue is expected to grow by 17.2% 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.
Rosenblatt Group'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.
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
Rosenblatt Group's finances.
The net worth of a company is the difference between its assets and liabilities.
Rosenblatt Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Rosenblatt Group has no long term commitments.
This treemap shows a more detailed breakdown of
Rosenblatt Group'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.
Low level of unsold assets.
Debt is covered by short term assets, assets are 2.4x debt.
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.
Ms. Nicola Foulston, also known as Nicky, has been Chief Executive Officer of Rosenblatt Solicitors since September 1, 2016. Ms. Foulston servers as the Chief Executive Officer of Rosenblatt Group plc. She was named Veuve Cliquot Business Woman of the Year in 1997 when she served as Chief Executive of Brands Hatch Leisure plc. She served as Chief Executive of Brands Hatch since 1990 when the business was valued at £6 million and built it into the largest organiser and promoter of motor sport in Europe; in 1996, she floated the business on the London Stock Exchange; and in 1999, she sold the business for over $195 million to Interpublic, the US marketing giant. In 2014, she was appointed as a Board Member of the Government’s Industrial Development Advisory Board (IDAB), an advisory non-departmental public body, sponsored by the Department for Business, Energy & Industrial Strategy, to help government boost growth in business.
Insufficient data for Nicky to compare compensation growth.
Insufficient data for Nicky to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Rosenblatt Group management team is less than 2 years, this suggests a new team.
Chief Executive Officer
Founder & Senior Partner
CFO & Director
Partner & Head Of India Desk
Partner & Head of Real Estate
Head Of International Business & Partner
Partner & Head of Dispute Resolution
Head Of Insolvency & Partner of Dispute Resolution
Head Of Real Estate Disputes
Company Secretary & Partner of Corporate
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Rosenblatt Group board of directors is less than 3 years, this suggests a new board.
Calculating The Fair Value Of Rosenblatt Group Plc (LON:RBGP)
by taking the expected future cash flows and 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
Does Rosenblatt Group Plc's (LON:RBGP) PE Ratio Signal A Selling Opportunity?
and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Rosenblatt Group Plc (LON:RBGP) is currently trading at a trailing P/E of 17.9x, which is higher than the industry average of 17.8x. … See our latest analysis for Rosenblatt Group
Rosenblatt Group Plc provides various legal services. The company offers litigation, arbitration, and other dispute resolution services, such as fraud, professional negligence, defamation, and other corporate disputes. It provides banking and finance, construction and project, corporate, employment, IP/technology/media, real estate, regulatory and fund, and tax related litigation, arbitration, and alternative dispute resolution services. The company was founded in 1989 and is based in London, the United Kingdom.
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