Discounted Cash Flow Calculation for SEHK:8417 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Dadi Education Holdings
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.
SEHK:8417 DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
Dadi Education Holdings
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
Dadi Education Holdings
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Dadi Education Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
Dadi Education Holdings'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
Dadi Education Holdings's
is considered below, and whether this is a fair price.
Price based on past earnings
Dadi Education Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
Dadi Education Holdings's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Dadi Education Holdings 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.
Dadi Education Holdings'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.
Dadi Education Holdings
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
Dadi Education Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
Dadi Education Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Dadi Education Holdings's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Dadi Education Holdings'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.
Low level of unsold assets.
Dadi Education Holdings has no debt, it does not need to be 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.
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.
TENURE AS CEO
Mr. Patrick Mok has been Chief Executive Officer and Executive Director of Dadi Education Holdings Limited since January 11, 2016 and serves as its Compliance Officer. Mr. Mok is primarily responsible for execution of daily management and administration of business operations, overseeing Dadi Education Holdings Group’s business operations and executing its strategic plan. He served consecutively as Senior Manager and Deputy General Manager of Dadi Education Holdings Limited. Prior to joining Dadi Education Holdings Group in April 2010 as a management trainee, he worked in Wong’s Circuits (HK) Ltd. from April 2000 to May 2001 (at which his last position was assistant engineer). From August 2001 to November 2008, he worked in Yan Tin Chemicals Co., Ltd (at which his last position was sales manager). From April 2009 to September 2009, he worked in Swiss Privilege (a member of AXA Group) (at which his last position was associate relationship manager). Mr. Mok graduated from City University of Hong Kong with a bachelor’s degree in engineering (manufacturing engineering) in November 1999.
Patrick's compensation has been consistent with company performance over the past year, both up more than 20%.
Patrick's remuneration is lower than average for companies of similar size in Hong Kong.
Wang Lung Chung
Founder & Executive Chairman
CEO, Compliance Officer & Executive Director
Pik Sau So
Chief Sales Manager & Education Counsellor
Board of Directors Tenure
Average tenure and age of the
Dadi Education Holdings
board of directors in years:
The average tenure for the Dadi Education Holdings board of directors is less than 3 years, this suggests a new board.
What Type Of Shareholder Owns Dadi Education Holdings Limited's (HKG:8417)?
Every investor in Dadi Education Holdings Limited (HKG:8417) should be aware of the most powerful shareholder groups. … Dadi Education Holdings is not a large company by global standards. … See our latest analysis for Dadi Education Holdings
Investors Who Bought Dadi Education Holdings (HKG:8417) Shares A Year Ago Are Now Down 81%
We don't think that Dadi Education Holdings's modest trailing twelve month profit has the market's full attention at the moment. … Many high growth companies focus on growing revenue before profits, but if revenue is the focus, it really needs to grow. … Dadi Education Holdings's revenue didn't grow at all in the last year.
Is Dadi Education Holdings Limited (HKG:8417) A Financially Sound Company?
The direct benefit for Dadi Education Holdings Limited (HKG:8417), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … However, the trade-off is 8417 will have to adhere to stricter debt covenants and have less financial flexibility. … Is financial flexibility worth the lower cost of capital
What Kind Of Shareholder Owns Most Dadi Education Holdings Limited (HKG:8417) Stock?
Every investor in Dadi Education Holdings Limited (HKG:8417) should be aware of the most powerful shareholder groups. … Dadi Education Holdings is a smaller company with a market capitalization of HK$271m, so it may still be flying under the radar of many institutional investors. … See our latest analysis for Dadi Education Holdings
Examining Dadi Education Holdings Limited’s (HKG:8417) Weak Return On Capital Employed
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.
Understanding Your Return On Investment In Dadi Education Holdings Limited (HKG:8417)
and want a simplistic look at the return on Dadi Education Holdings Limited (HKG:8417) stock. … Thus, to understand how your money can grow by investing in Dadi Education Holdings, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … Dadi Education Holdings's Return On Capital Employed
How Dadi Education Holdings Limited's (HKG:8417) Earnings Growth Stacks Up Against The Industry
Investors with a long-term horizong may find it valuable to assess Dadi Education Holdings Limited's (HKG:8417) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. … Below is my commentary, albiet very simple and high-level, on how Dadi Education Holdings is currently performing. … Was 8417's recent earnings decline worse than the long-term trend and the industry.
With An ROE Of 1.56%, Has Dadi Education Holdings Limited's (HKG:8417) Management Done Well?
and want to begin learning the link between Dadi Education Holdings Limited (HKG:8417)’s return fundamentals and stock market performance. … Dadi Education Holdings Limited’s (HKG:8417) most recent return on equity was a substandard 1.56% relative to its industry performance of 13.65% over the past year. … Knowing these components could change your view on 8417’s performance.
Dadi Education Holdings Limited, an investment holding company, provides overseas studies consultancy services in Hong Kong. It serves students seeking secondary and higher education studies in the United Kingdom, Australia, Canada, New Zealand, the United States, and other countries. Dadi Education Holdings Limited was founded in 1990 and is headquartered in Mong Kok, Hong Kong.
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