Discounted Cash Flow Calculation for LSE:SUPR using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Supermarket Income 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:SUPR DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
Supermarket Income 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
Supermarket Income REIT's
is considered below, and whether this is a fair price.
Price based on past earnings
Supermarket Income REIT's earnings available for a low price, and how does
this compare to other companies in the same industry?
Supermarket Income REIT's earnings are expected to grow significantly at over 20% yearly.
Supermarket Income REIT's revenue is expected to grow by 15.2% 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.
Supermarket Income 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.
Supermarket Income REIT
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.
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
Supermarket Income REIT's finances.
The net worth of a company is the difference between its assets and liabilities.
Supermarket Income REIT is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Supermarket Income REIT's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Supermarket Income 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 0x 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.
Do Institutions Own Shares In Supermarket Income REIT plc (LON:SUPR)?
Supermarket Income REIT is not a large company by global standards. … Check out our latest analysis for Supermarket Income REIT LSE:SUPR Ownership Summary, May 21st 2019 What Does The Institutional Ownership Tell Us About Supermarket Income REIT? … Insider Ownership Of Supermarket Income REIT The definition of company insiders can be subjective, and does vary between jurisdictions.
A Closer Look At Supermarket Income REIT plc's (LON:SUPR) Uninspiring ROE
Our data shows Supermarket Income REIT has a return on equity of 5.4% for the last year. … That means that for every £1 worth of shareholders' equity, it generated £0.054 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Is Supermarket Income REIT plc's (LON:SUPR) ROE Of 0.3% Concerning?
By way of learning-by-doing, we'll look at ROE to gain a better understanding of Supermarket Income REIT plc (LON:SUPR). … Our data shows Supermarket Income REIT has a return on equity of 0.3% for the last year. … View our latest analysis for Supermarket Income REIT?
How To Look At Supermarket Income REIT plc (LON:SUPR)
Supermarket Income REIT plc is a UK£187m. … View our latest analysis for Supermarket Income REIT … REIT investors should be familiar with the term Fund from Operations (FFO) – a REIT’s main source of cash flow from its day-to-day business activities
Is Supermarket Income REIT plc (LON:SUPR) An Industry Laggard Or Leader?
Supermarket Income REIT plc (LSE:SUPR), a UK£118.80M small-cap, operates in the real estate industry which is the most prevalent industry in the global economy, and as an asset class, it has continued to play a crucial role in the portfolios of various investors. … Real estate analysts are forecasting for the entire industry, negative growth in the upcoming year , and an overall negative growth rate in the next couple of years. … Check out our latest analysis for Supermarket Income REIT What’s the catalyst for Supermarket Income REIT's sector growth?
Supermarket Income REIT plc (SUPR) is listed on the London Stock Exchange. The Company acquires UK supermarket sites that form a key part of the future model of grocery in the UK. It aims to provide long-term RPI-linked income, from institutional grade tenants and the potential for long- term capital growth. Atrato Capital is the Company's Investment Adviser.
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