Discounted Cash Flow Calculation for SEHK:6860 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.
SEHK:6860 DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
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
is considered below, and whether this is a fair price.
Price based on past earnings
FingerTango's earnings available for a low price, and how does
this compare to other companies in the same industry?
FingerTango's earnings are expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
Unable to determine if FingerTango 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.
FingerTango'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
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Why FingerTango Inc. (HKG:6860) Looks Like A Quality Company
Our data shows FingerTango has a return on equity of 12% for the last year. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for FingerTango: 12% = CN¥156m ÷ CN¥1.3b (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … FingerTango's Debt And Its 12% ROE One positive for shareholders is that FingerTango does not have any net debt!
Do Insiders Own Shares In FingerTango Inc. (HKG:6860)?
Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … FingerTango is a smaller company with a market capitalization of HK$3.2b, so it may still be flying under the radar of many institutional investors. … Our analysis of the ownership of the company, below, shows that.
Should You Be Tempted To Sell FingerTango Inc. (HKG:6860) Because Of Its P/E Ratio?
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) … P/E of 15.2 = CN¥1.42 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.093
Are FingerTango Inc.’s (HKG:6860) High Returns Really That Great?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
What does FingerTango Inc.'s (HKG:6860) Balance Sheet Tell Us About Its Future?
(HKG:6860), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … Is financial flexibility worth the lower cost of capital … Debt capital generally has lower cost of capital compared to equity funding.
What Kind Of Shareholder Appears On The FingerTango Inc.'s (HKG:6860) Shareholder Register?
A look at the shareholders of FingerTango Inc. … So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. … Let's take a closer look to see what the different types of shareholder can tell us about 6860
Is FingerTango Inc (HKG:6860) A High Quality Stock To Own?
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every HK$1 worth of equity in the company, it was able to earn HK$0.54. … Return on Equity = Net Profit ÷ Shareholders' Equity
Is FingerTango Inc's (HKG:6860) Balance Sheet Strong Enough To Weather A Storm?
However, it also faces higher cost of capital given interest cost is generally lower than equity. … Does 6860's growth rate justify its decision for financial flexibility over lower cost of capital. … Debt capital generally has lower cost of capital compared to equity funding
Do You Know Who Else Invests In FingerTango Inc (HKG:6860)?
The big shareholder groups in FingerTango Inc (HKG:6860) have power over the company. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … FingerTango is a smaller company with a market capitalization of HK$5.34b, so it may still be flying under the radar of many institutional investors.
Fingertango Inc. operates as a mobile game publisher in China. The company publishes and sells simulation (SLG) mobile game. As of December 31, 2017, it had approximately 129.4 million cumulative registered users. The company distributes its games through distribution platform and co-publishers. Fingertango Inc. was founded in 2013 and is headquartered in Tianhe, China.
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