Discounted Cash Flow Calculation for LSE:IHR using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Impact Healthcare REIT
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.
LSE:IHR DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
Impact Healthcare REIT
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
Impact Healthcare REIT's
is considered below, and whether this is a fair price.
Price based on past earnings
Impact Healthcare REIT's earnings available for a low price, and how does
this compare to other companies in the same industry?
Impact Healthcare REIT's earnings are expected to grow by 1.2% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Impact Healthcare REIT is high growth as no revenue estimate data is available.
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.
Impact Healthcare REIT'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.
Impact Healthcare REIT
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
Impact Healthcare REIT's finances.
The net worth of a company is the difference between its assets and liabilities.
Impact Healthcare REIT's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Impact Healthcare REIT's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Impact Healthcare REIT'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.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.1x 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.
Is Impact Healthcare REIT PLC's (LON:IHR) 6.9% ROE Strong Compared To Its Industry?
Impact Healthcare REIT has a ROE of 6.9%, based on the last twelve months. … One way to conceptualize this, is that for each £1 of shareholders' equity it has, the company made £0.069 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
How Does Impact Healthcare REIT PLC (LON:IHR) Fare As A Dividend Stock?
See our latest analysis for Impact Healthcare REIT How I analyze a dividend stock Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Is it the top 25% annual dividend yield payer? … LSE:IHR Historical Dividend Yield Apr 26th 18 Does Impact Healthcare REIT pass our checks? … Unfortunately, it is really too early to view Impact Healthcare REIT as a dividend investment.
Impact Healthcare REIT PLC (LON:IHR): Can It Deliver A Superior ROE To The Industry?
View our latest analysis for Impact Healthcare REIT Breaking down Return on Equity Return on Equity (ROE) is a measure of Impact Healthcare REIT’s profit relative to its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Impact Healthcare REIT’s equity capital deployed. … Although, its appropriate level of leverage means investors can be more confident in the sustainability of Impact Healthcare REIT’s return with a possible increase should the company decide to increase its debt levels.
Is Impact Healthcare REIT PLC (LON:IHR) Still A Cheap Real Estate Stock?
Impact Healthcare REIT PLC (LSE:IHR), a GBP£196.53M small-cap, operates in the real estate industry which remains the single largest sector globally, and has continued to play a key role in investor portfolios as an asset class. … Below, I will examine the sector growth prospects, as well as evaluate whether Impact Healthcare REIT is lagging or leading its competitors in the industry. … If your investment thesis for Impact Healthcare REIT hasn’t changed, now may be an opportune time to accumulate more shares in the real estate stock.
Impact Healthcare REIT Plc is a real estate investment trust externally managed by Carne Global AIFM Solutions. The firm invests in the real estate markets of United Kingdom. It primarily acquires, owns, leases, renovates, extends and redevelops high quality healthcare real estate assets. Impact Healthcare REIT Plc was formed on 7 November 2016 and is based in London, United Kingdom.
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