Discounted Cash Flow Calculation for AIM:BKS using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
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.
AIM:BKS DCF 1st Stage: Next 10 year cash flow forecast
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.
Beeks Trading's share price is below the future cash flow value, and at a moderate discount (> 20%).
Beeks Trading'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
Beeks Trading's earnings available for a low price, and how does
this compare to other companies in the same industry?
Beeks Trading's earnings are expected to grow significantly at over 20% yearly.
Beeks Trading's revenue is expected to grow significantly at over 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.
Beeks Trading'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
3/6, 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. Gordon McArthur has been the Chief Executive Officer at Beeks Trading Corporation Ltd. and BeeksFX VPS since January 2011. Mr. McArthur is the owner of BeeksFX VPS. He established BeeksFX in 2011 after growing increasingly frustrated by the lack of low latency infrastructure offerings for retail traders. He previously worked for IBM and IBM Business Partners for 19 years in various commercial roles within the IBM Software Business. He serves as a Director at Beeks Trading Corporation Ltd. Mr. McArthur holds BA (Hons) in Risk Management and a Masters Degree in Business Management Systems and Information Technology from Glasgow Caledonian University.
Gordon's compensation has increased in line with Beeks Trading recently becoming profitable.
Gordon's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Investors Who Bought Beeks Trading (LON:BKS) Shares A Year Ago Are Now Up 58%
One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During the last year Beeks Trading grew its earnings per share, moving from a loss to a profit. … When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.
Beeks Trading Corporation Ltd. (LON:BKS): Time For A Financial Health Check
While small-cap stocks, such as Beeks Trading Corporation Ltd. … (LON:BKS) with its market cap of UK£57m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.
Here's What Beeks Trading Corporation Ltd.'s (LON:BKS) ROCE Can Tell Us
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Is Beeks Trading Corporation Ltd's (LON:BKS) Balance Sheet A Threat To Its Future?
While small-cap stocks, such as Beeks Trading Corporation Ltd (LON:BKS) with its market cap of UK£56m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.
Should You Be Tempted To Sell Beeks Trading Corporation Ltd (LON:BKS) At Its Current PE Ratio?
and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Beeks Trading Corporation Ltd (LON:BKS) trades with a trailing P/E of 43.8, which is higher than the industry average of 33.2. … Check out our latest analysis for Beeks Trading
Is Beeks Trading Corporation Ltd (LON:BKS) A Financially Sound Company?
Beeks Trading Corporation Ltd (LON:BKS) is a small-cap stock with a market capitalization of UK£35.53m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is
Is Beeks Trading Corporation Ltd (LON:BKS) Thriving Or Barely Surviving In The Tech Sector?
In this article, I’ll take you through the tech sector growth expectations, and also determine whether Beeks Trading is a laggard or leader relative to its tech sector peers. … Software tech companies are typically trading at a PE of 35x, above the broader UK stock market PE of 18x. … The sector is relatively more expensive than the rest of the market which makes it less attractive to enter into companies like Beeks Trading right now.
Beeks Trading Corporation Ltd. provides virtual private server and infrastructure solutions for traders and broker partners worldwide. The company also offers co-location services; dedicated server packages; and server installation services. In addition, it provides institutional venue connections and retail broker connections through its Equinix platform; and Beeks Marketplace, a cloud-based portal that enables real-time connectivity to various exchanges, data feeds, trading tools, and news services for institutional traders, proprietary trading firms, brokers, wealth managers, and high-end retail traders. The company was incorporated in 2010 and is based in Paisley, United Kingdom with additional offices in Austria, Chicago, the United Kingdom, Indonesia, New York, and Tokyo. Beeks Trading Corporation Ltd. operates as a subsidiary of Beeks Financial Cloud Group Limited.
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