Discounted Cash Flow Calculation for SEHK:1268 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
China MeiDong Auto Holdings
is arrived at by discounting future cash flows to their present value using the 2 stage method. We use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
SEHK:1268 DCF 1st Stage: Next 5 year cash flow forecast
Amount off the current price
China MeiDong Auto Holdings
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
China MeiDong Auto Holdings
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
China MeiDong Auto Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
China MeiDong Auto 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
China MeiDong Auto Holdings's
is considered below, and whether this is a fair price.
Price based on past earnings
China MeiDong Auto Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
China MeiDong Auto Holdings's earnings are expected to grow significantly at over 20% yearly.
China MeiDong Auto Holdings's revenue is expected to grow by 17.8% yearly, however this is not considered high growth (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.
China MeiDong Auto 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.
China MeiDong Auto Holdings
has a total score of
6/6, 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
China MeiDong Auto Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
China MeiDong Auto Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
China MeiDong Auto Holdings's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
China MeiDong Auto 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.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 2.5x debt.
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.
Mr. Tao Ye serves as the Chief Executive Officer of China MeiDong Auto Holdings Limited. Mr. Ye is responsible for overseeing the daily operations and management of the Group, planning its business and marketing strategies and supervising investor relationship. He served as General Manager of Asian Operations of EMC Document Sciences Corp, since July 2004. He served as Chief Executive of Objective Software Solutions (Beijing). He has been Executive Director at China MeiDong Auto Holdings Limited since November 24, 2012. Mr. Ye graduated from Massachusetts Institute of Technology with a Master of Science degree in Management and a Master of Science degree in Mechanical Engineering. He holds an MBA from the MIT Sloan School of Business and a M.S. in Materials Science from the University of California Santa Barbara and a B.S. in Mathematical Mechanics from Peking (Beijing) University.
Tao's compensation has been consistent with company performance over the past year.
Tao's remuneration is higher than average for companies of similar size in Hong Kong.
Founder and Chairman
Chief Executive Officer and Executive Director
Chief Financial Officer and Executive Director
Vice President of Human Resources and Administration
Vice President of Sales and Marketing
Vice President of After-Sales Operations Unit
Vice President of Purchasing and Projects
Bit Chee Lo
Vice President of Internal Audit and Information Technology
Board of Directors Tenure
Average tenure and age of the
China MeiDong Auto Holdings
board of directors in years:
The tenure for the China MeiDong Auto Holdings board of directors is about average.
Why Fundamental Investors Might Love China MeiDong Auto Holdings Limited (HKG:1268)
Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on China MeiDong Auto Holdings Limited (HKG:1268) due to its excellent fundamentals in more than one area.
China MeiDong Auto Holdings Limited (HKG:1268): Is Growth Priced In?
China MeiDong Auto Holdings Limited (HKG:1268) is considered a high growth stock. … Check out our latest analysis for China MeiDong Auto Holdings? … If you are bullish about China MeiDong Auto Holdings's growth potential then you are certainly not alone
Is China MeiDong Auto Holdings Limited (HKG:1268) A Smart Choice For Dividend Investors?
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China MeiDong Auto Holdings Limited (HKG:1268) Delivered A Better ROE Than The Industry, Here’s Why
By way of learning-by-doing, we'll look at ROE to gain a better understanding China MeiDong Auto Holdings Limited (HKG:1268). … Our data shows China MeiDong Auto Holdings has a return on equity of 26% for the last year. … See our latest analysis for China MeiDong Auto Holdings?
What does China MeiDong Auto Holdings Limited's (HKG:1268) Balance Sheet Tell Us About Its Future?
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Have Investors Priced In China MeiDong Auto Holdings Limited's (HKG:1268) Growth?
China MeiDong Auto Holdings Limited (HKG:1268), a specialty retail company based in China,. … A question to answer is whether China MeiDong Auto Holdings's current trading price of HK$2.54 reflective of the actual value of the? … Let’s take a look at China MeiDong Auto Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change
China MeiDong Auto Holdings Limited (HKG:1268): Is Retail Attractive?
operates in the retail industry. … Looking at trends for growth in macroeconomic factors such as inflation, consumer confidence and interest rates are important when thinking about investing in the retail industry … Retail analysts are forecasting for the entire industry,
Who Really Owns China MeiDong Auto Holdings Limited (HKG:1268)?
Today, I will be analyzing China MeiDong Auto Holdings Limited’s (HKG:1268) recent ownership structure, an important but not-so-popular subject among individual investors. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment. … Therefore, it is beneficial for us to examine 1268's ownership structure in more detail.
Investors Are Undervaluing China MeiDong Auto Holdings Limited (HKG:1268) By 47.26%
by projecting its future cash flows and then discounting them to today's value. … Discounted Cash Flows (DCF). … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model
Is China MeiDong Auto Holdings Limited (HKG:1268) A Smart Pick For Income Investors?
Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. … Over the past 4 years, China MeiDong Auto Holdings Limited (HKG:1268) has returned an average of 3.00% per year to shareholders in terms of dividend yield. … Let's take a look at China MeiDong Auto Holdings in more detail.
China MeiDong Auto Holdings Limited, an investment holding company, operates as an automobile dealer in Mainland China. The company is involved in the sale of new passenger cars and spare parts; and trading of used vehicles. It also provides after-sales services, such as auto registration, insurance, auto financing mortgage, auto parts, repair and replacement, and sales and maintenance of automotive supplies, etc. In addition, the company engages in the finance leasing activity. Its dealership stores cover various automobile brands comprising BMW, Lexus, Toyota, Hyundai, and Porsche. It operates 39 4S dealership stores. The company was founded in 2003 and is headquartered in Dongguan, the People’s Republic of China. China MeiDong Auto Holdings Limited is a subsidiary of Apex Sail Limited.
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