Discounted Cash Flow Calculation for ATSE:LIVAN 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.
ATSE:LIVAN 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.
Livanis Publications's share price is below the future cash flow value, and at a moderate discount (> 20%).
Livanis Publications'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
Livanis Publications's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Livanis Publications has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Media industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Livanis Publications's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Livanis Publications's earnings growth to the Greece market average as no estimate data is available.
Unable to compare Livanis Publications's revenue growth to the Greece market average as no estimate data is available.
Unable to determine if Livanis Publications is high growth as no earnings estimate data is available.
Unable to determine if Livanis Publications 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.
Livanis Publications'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
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
Livanis Publications's finances.
The net worth of a company is the difference between its assets and liabilities.
Livanis Publications's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Livanis Publications's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Livanis Publications'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.
Livanis Publications has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
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.
Should You Worry About Livanis Publications SA's (ATH:LIVAN) Cash Runway?
Livanis Publications may need to come to market again, but the question is, when? … ATSE:LIVAN Income Statement May 16th 18 When will Livanis Publications need to raise more cash? … However, even with declining costs, the current level of cash is not enough to sustain Livanis Publications’s operations and the company may need to come to market to raise more capital within the year.
How Livanis Publications SA (ATH:LIVAN) Can Impact Your Portfolio Volatility
Generally, an investor should consider two types of risk that impact the market value of LIVAN. … A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … A market capitalisation of €479.53K puts LIVAN in the category of small-cap stocks, which tends to possess higher beta than larger companies.
Should You Be Content With Livanis Publications SA's (ATH:LIVAN) Earnings Growth?
After looking at Livanis Publications SA's (ATSE:LIVAN) latest earnings announcement (30 June 2017), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … Each year, for the last five years Livanis Publications has seen an annual decline in revenue of -19.15%, on average. … I recommend you continue to research Livanis Publications to get a better picture of the stock by looking at: 1.
Livanis Publications SA engages in the publishing business. It publishes books, educational CD-ROMs, magazines, and commercial software applications, as well as books in the areas of technical and economic studies. The company also publishes digital books, including novel, essay, children-adolescents, educational, and psychology books. In addition, it provides Internet services. The company was founded in 1972 and is based in Athens, Greece.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.