Hays plc operates as a specialist recruitment company in the Asia Pacific, Continental Europe, the United Kingdom, Ireland, and internationally. More info.
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (GBP, Millions)||£126.61||£142.21||£146.23||£155.25||£164.83|
|Source||Analyst x7||Analyst x7||Analyst x4||Extrapolated @ (6.17%)||Extrapolated @ (6.17%)|
Discounted (@ 8.3%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = £165 × (1 + 1.49%) ÷ (8.3% – 1.49%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
£2,226 = £577 + £1,649
Value = Total value / Shares Outstanding (£2,226 / 1,451)Discount to Share Price
Value per share:
Current discount (share price of £2): -30.13%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 8.3% = 1.49% + (0.8 * 8.51%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value (£2,896,905,631).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.414 = 0.414 (1 + (1- 19%) (0.01%))
Levered Beta used in calculation = 0.8
Mr. Alistair Richard Cox has been the Chief Executive Officer of Hays plc since November 2007 and also has been its Executive Director since September 1, 2007. Mr. Cox served as the President of Lafarge Malaysia Berhad. He served as the Chief Executive Officer of Xansa PLC (now, Steria UK Corporate Ltd.) from August 2002 to June 4, 2007. He served as a Regional President of Asia, Lafarge and Group Strategy Director of Blue Circle (subsequently Lafarge) from 1994 to 2002 and McKinsey & Co from 1990 to 1994. He served as an Executive Officer of Hays plc since June 2007. An Engineer by background, his early business experience was with British Aerospace and Schlumberger in the United Kingdom and United States. He has been an Independent Non-Executive Director at JUST EAT plc since May 2, 2017. He serves as a Director of Hays Specialist Recruitment (Australia) Pty Limited New Zealand Branch. He served as a Non-Executive Director of 3i Group plc from October 2009 to November 10, 2015. He served as a Director of Steria UK Corporate Ltd. until June 2007. Mr. Cox is a Chartered Engineer and has an M.B.A. from the Stanford Business school in California. He holds a first class Honors Degree in Aeronautical Engineering from Salford University.
Average tenure and age of the Hays management team in years:
Average tenure and age of the Hays board of directors in years:
Investors may find it useful to understand how market analysts perceive Hays's earnings growth outlook over the next few years and whether the future looks even brighter than the past. … Check out our latest analysis for Hays Market analysts' consensus outlook for this coming year seems optimistic, with earnings expanding by a robust 13.22%. … The slope of this line is the rate of earnings growth, which in this case is 8.17%.Simply Wall St - – Full article
If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range. … Hays’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. … If you believe Hays should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.Simply Wall St - – Full article
Return on Equity = Net Profit ÷ Shareholders Equity Returns are usually compared to costs to measure the efficiency of capital. … ROE can be dissected into three distinct ratios: net profit margin, asset turnover, and financial leverage. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity LSE:HAS Last Perf Oct 31st 17 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient HAS is with its cost management.Simply Wall St - – Full article
Hays plc operates as a specialist recruitment company in the Asia Pacific, Continental Europe, the United Kingdom, Ireland, and internationally. The company offers permanent, temporary, and contractor recruitment services, such as qualified, professional, and skilled recruitment to public and private sector. It specializes in offering recruitment services in the areas of accountancy and finance, construction and property, information technology, life sciences, sales and marketing, banking and capital markets, contact centers, education, engineering and manufacturing, executive, financial services, health and social care, human resources, legal, office professionals, energy, oil and gas, purchasing, retail, resources and mining, and telecoms. Hays plc was founded in 1969 and is headquartered in London, the United Kingdom.
250 Euston Road,
Greater London, NW1 2AF,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|LSE||HAS||Ordinary Shares||London Stock Exchange||GB||GBP||02. Jan 1992|
|OTCPK||HAYP.F||Ordinary Shares||Pink Sheets LLC||US||USD||02. Jan 1992|
|DB||HAY||Ordinary Shares||Deutsche Boerse AG||DE||EUR||02. Jan 1992|
|BATS-CHIXE||HASL||Ordinary Shares||BATS 'Chi-X Europe'||GB||GBP||02. Jan 1992|
|OTCPK||HAYP.Y||ADR||Pink Sheets LLC||US||USD||17. Feb 2010|
|Human Resource and Employment Services|
|Company Analysis updated:||2018/01/19|
|Last estimates confirmation:||2018/01/17|
|Last earnings update:||2017/06/30|
|Last annual earnings update:||2017/06/30|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.