Discounted Cash Flow Calculation for LSE:AMGO using Excess Returns Model Model
The calculations below outline how an intrinsic value for Amigo Holdings 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.
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.
Amigo Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
Amigo Holdings's share price is below the future cash flow value, and 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
Amigo Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
Amigo Holdings's earnings are expected to grow significantly at over 20% yearly.
Amigo Holdings's revenue is expected to grow by 14.7% 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.
Amigo Holdings'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.
Mr. Glen P. Crawford has been the Chief Executive Officer of Amigo Holdings PLC and serves as its Director. Mr. Crawford serves as Chief Executive Officer of Amigo Loans Ltd and Amigo Management since October 2015. Mr. Crawford served as an Executive Director of Cabot Financial (Europe) Limited. He served as the Managing Director of Cabot Financial (Europe) Limited. Mr. Crawford served as General Counsel of Cabot Financial (Europe) Limited. Mr. Crawford served as Group Managing Director at Apex Credit Management Limited. He joined the Cabot Financial in April 1998 after acting as External Legal Counsel since Cabot Financial's inception. He is a corporate lawyer with over 10 years experience representing UK, US and international clients in a wide range of M & A, joint venture, venture capital and corporate finance transactions. He is a specialist in consumer credit and data protection law and joined as a Director of it from US law firm Mayer, Brown & Platt. He was articled with City law firm Gouldens (now Jones Day) where he practised for six years before being head-hunted by Mayer, Brown & Platt. He serves as Director at Apex Credit Management Limited. Mr. Crawford served as Non-Voting Observer at Cabot Credit Management Group Limited. He is a Solicitor of the Supreme Court, a member of the Law Society of England and Wales and a member of the Institute of Directors. He holds an LLB (Hons) from the University of Bristol.
Insufficient data for Glen to compare compensation growth.
Insufficient data for Glen to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
CEO & Director
CFO & Executive Director
Chief Regulatory & Public Affairs Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Amigo Holdings board of directors is less than 3 years, this suggests a new board.
Consider This Before Buying Amigo Holdings PLC (LON:AMGO) For The 1.6% Dividend
A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Let's dig deeper into whether Amigo Holdings should have a place in your portfolio. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Amigo Holdings PLC (LON:AMGO) Is Undervalued By 29.74%
Valuing AMGO, a financial stock, can be daunting since consumer financials generally have cash flows that are impacted by regulations that are not imposed upon other industries. … These lenders, for example, must hold certain levels of capital in order to maintain a safe cash cushion.
Why Amigo Holdings PLC (LON:AMGO) Could Be Your Next Investment
Amigo Holdings PLC (LON:AMGO) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of AMGO, it.
Is Amigo Holdings PLC (LON:AMGO) A Strong Financials Bet?
is a consumer finance company operating in an industry, … Many aspects of consumer finance are being attacked by new competitors, whose key advantage is a leaner and technology-enabled operating model, allowing them to scale at a faster rate and meet changing consumer needs … Financial services analysts are forecasting for the entire industry,
Does Amigo Holdings PLC's (LON:AMGO) PE Ratio Signal A Buying Opportunity?
This article is intended for those of you who are at the beginning of your investing journey. … and want to better understand how you can grow your money by investing in Amigo Holdings PLC (LON:AMGO). … Amigo Holdings PLC (LON:AMGO) is currently trading at a trailing P/E of 0.06x, which is lower than the industry average of 11.3x.
Amigo Holdings PLC, through its subsidiaries, provides guarantor loans to individuals in the United Kingdom. The company was founded in 2005 and is based in Bournemouth, the United Kingdom. Amigo Holdings PLC is a subsidiary of Richmond Group Limited.
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