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)||£49.00||£55.30||£79.00||£91.73||£106.40|
|Source||Analyst x2||Analyst x3||Analyst x1||Extrapolated @ (16.11%)||Extrapolated @ (16%, capped from 16.11%)|
Discounted (@ 8.3%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = £106 × (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 +
£1,357 = £293 + £1,065
Value = Total value / Shares Outstanding (£1,357 / 397)Discount to Share Price
Value per share:
Current discount (share price of £0.9): 73.78%
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 (£354,806,970).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.566 = 0.401 (1 + (1- 19%) (50.7%))
Levered Beta used in calculation = 0.8
Purchase Lookers on or before the 'Buy Limit' to receive their next dividend payment.
Mr. Andrew Campbell Bruce, also known as Andy, has been the Chief Executive Officer at Lookers plc since January 2, 2014. Mr. Bruce joined Lookers PLC in 2000, served as its Chief Operating Officer from March 2012 to January 2, 2014 and its Managing Director of Motor Division since March 2010. He served as Operations Director of Lookers PLC. He served as UK Sales Director for Land Rover and has Group responsibility for Chrysler Jeep, Citroën, Lexus, MG Rover, Nissan, PAG, Peugeot, Renault, Toyota and Specialist Cars. He serves as Director at Charles Hurst Limited. He has been an Executive Director at Lookers PLC since 2002.
Average tenure and age of the Lookers management team in years:
Average tenure and age of the Lookers board of directors in years:
Based on Lookers plc's (LSE:LOOK) earnings update in December 2017, analyst forecasts seem pessimistic, with profits predicted to drop by -10.01% next year compared with the past 5-year average growth rate of 16.75%. … I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of LOOK's earnings growth over these next few years. … LSE:LOOK Future Profit Mar 14th 18 By 2021, LOOK's earnings should reach UK£56.56M, from current levels of UK£47.90M, resulting in an annual growth rate of 6.09%.Simply Wall St - – Full article
Today I will take a look at Lookers plc's (LSE:LOOK) most recent earnings update (30 June 2017) and compare these latest figures against its performance over the past few years, as well as how the rest of the specialty retail industry performed. … Since these values are fairly myopic, I’ve computed an annualized five-year figure for Lookers's earnings, which stands at UK£39.86M This shows that, on average, Lookers has been able to consistently grow its profits over the past few years as well. … In the past few years, Lookers increased its bottom line faster than revenue by successfully controlling its costs.Simply Wall St - – Full article
View our latest analysis for Lookers 5 questions I ask before picking a dividend stock When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is their annual yield among the top 25% of dividend payers? … Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income. … In terms of its peers, Lookers generates a yield of 4.05%, which is high for Specialty Retail stocks.Next Steps: Keeping in mind the dividend characteristics above, Lookers is definitely worth considering for investors looking to build a dedicated income portfolio.Simply Wall St - – Full article
LSE:LOOK Historical Dividend Yield Feb 7th 18 Debenhams plc (LSE:DEB) DEB has a great dividend yield of 12.16% and the company currently pays out 86.17% of its profits as dividends. … LSE:DEB Historical Dividend Yield Feb 7th 18 Headlam Group plc (LSE:HEAD) HEAD has a enticing dividend yield of 5.51% and pays 60.60% of it’s earnings as dividends. … LSE:HEAD Historical Dividend Yield Feb 7th 18 For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.Simply Wall St - – Full article
Great news for investors – Lookers is still trading at a fairly cheap price. … This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.Simply Wall St - – Full article
At this constant level of debt, LOOK currently has £39.8M remaining in cash and short-term investments for investing into the business. … Additionally, LOOK has generated cash from operations of £99.4M during the same period of time, leading to an operating cash to total debt ratio of 20.96%, indicating that LOOK’s current level of operating cash is high enough to cover debt. … For LOOK, the ratio of 6.03x suggests that interest is appropriately covered, which means that debtors may be willing to loan the company more money, giving LOOK ample headroom to grow its debt facilities.Next Steps: At its current level of cash flow coverage, LOOK has room for improvement to better cushion for events which may require debt repayment.Simply Wall St - – Full article
Today I want to provide a brief commentary on how market analysts predict Lookers's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. … LSE:LOOK Future Profit Dec 28th 17 Although it’s useful to understand the growth rate year by year relative to today’s level, it may be more insightful to determine the rate at which the earnings are growing every year, on average. … The slope of this line is the rate of earnings growth, which in this case is -2.45%.Simply Wall St - – Full article
LOOK's stock is currently trading at -62% below its true level of £2.6, at a price of £0.98, based on my discounted cash flow model. … Additionally, RDW’s PE ratio stands at around 8.5x while its household durables peer level trades at 12.2x, implying that relative to its competitors, RDW’s stock can be bought at a cheaper price. … What’s even more appeal is that STM’s PE ratio is trading at 7.3x while its capital markets peer level trades at 17.9x, indicating that relative to its competitors, we can buy STM’s stock at a cheaper price today.Simply Wall St - – Full article
See our latest analysis for LOOK Here's how I find good dividend stocks If you are a dividend investor, you should always assess these five key metrics: Is their annual yield among the top 25% of dividend payers? … This means that dividend hunters should probably steer clear of the stock, at least for now until the track record improves. … Compared to its peers, LOOK has a yield of 3.50%, which is high for specialty retail stocks but still below the market's top dividend payers.Simply Wall St - – Full article
Lookers plc engages in the sale, hire, and maintenance of motor vehicles and motorcycles in the United Kingdom and Ireland. The company engages in the sale of new and used cars, and vans; and servicing, repair, and sale of franchised parts to customers’ vehicles. It operates 160 franchised dealerships representing 33 marques from 102 locations. The company is also involved in the sale of tires, oils, parts, and accessories; the sale, service, and parts supply of agricultural, ground care, and construction machinery; and car leasing, motability, and finance activities. Lookers plc was founded in 1908 and is based in Manchester, the United Kingdom.
776 Chester Road,
Greater Manchester, M32 0QH,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|LSE||LOOK||Ordinary Shares||London Stock Exchange||GB||GBP||02. Jan 1992|
|OTCPK||LKKR.F||Ordinary Shares||Pink Sheets LLC||US||USD||02. Jan 1992|
|DB||LO6A||Ordinary Shares||Deutsche Boerse AG||DE||EUR||02. Jan 1992|
|Company Analysis updated:||2018/03/21 18:48|
|Last estimates confirmation:||2018/03/12|
|Last earnings update:||2017/12/31|
|Last annual earnings update:||2017/12/31|
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.