Discounted Cash Flow Calculation for BUSE:OTT1 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.
BUSE:OTT1 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.
OTT-ONE Nyrt's share price is below the future cash flow value, but not at a moderate discount (< 20%).
OTT-ONE Nyrt's share price is below the future cash flow value, but not 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
OTT-ONE Nyrt's earnings available for a low price, and how does
this compare to other companies in the same industry?
OTT-ONE Nyrt's earnings are expected to grow by 11.2% yearly, however this is not considered high growth (20% yearly).
Unable to determine if OTT-ONE Nyrt 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.
OTT-ONE Nyrt'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
Interactive Media and Services
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.
A Look At The Intrinsic Value Of OTT-ONE Nyrt. (BUSE:OTT1)
Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (HUF, Millions) HUF332.92 HUF449.36 HUF563.37 HUF668.43 HUF761.61 HUF842.70 HUF912.99 HUF974.41 HUF1.03k HUF1.08k Growth Rate Estimate Source Est @ 48.7% Est @ 34.98% Est @ 25.37% Est @ 18.65% Est @ 13.94% Est @ 10.65% Est @ 8.34% Est @ 6.73% Est @ 5.6% Est @ 4.81% Present Value (HUF, Millions) Discounted @ 12.11% HUF296.96 HUF357.53 HUF399.82 HUF423.13 HUF430.05 HUF424.43 HUF410.17 HUF390.47 HUF367.79 HUF343.82 Present Value of 10-year Cash Flow (PVCF)= HUF3.84b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … We discount the terminal cash flows to today's value at a cost of equity of 12.1%. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = Ft1.1b × (1 + 3%) ÷ (12.1% – 3%) = Ft12b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = HUFFt12b ÷ ( 1 + 12.1%)10 = HUF3.87b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is HUF7.71b.
Can You Imagine How Ecstatic OTT-ONE Nyrt's (BUSE:OTT1) Shareholders Feel About Its 2240% Share Price Increase?
(BUSE:OTT1) share price has soared 2240% over five years. … During the five years of share price growth, OTT-ONE Nyrt moved from a loss to profitability. … Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains
Is OTT-ONE Nyrt.'s (BUSE:OTT1) 25% Better Than Average?
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … By way of learning-by-doing, we'll look at ROE to gain a better understanding of OTT-ONE Nyrt. … Over the last twelve months OTT-ONE Nyrt has recorded a ROE of 25%.
OTT-ONE Nyrt. (BUSE:OTT1): Time For A Financial Health Check
However, it also faces higher cost of capital given interest cost is generally lower than equity. … Is OTT1 growing fast enough to value financial flexibility over lower cost of capital … There are well-known benefits of including debt in capital structure, primarily a lower cost of capital.
Is OTT-ONE Nyrt's (BUSE:OTT1) Balance Sheet Strong Enough To Weather A Storm?
However, the trade-off is OTT1 will have to adhere to stricter debt covenants and have less financial flexibility. … Is OTT1 growing fast enough to value financial flexibility over lower cost of capital. … Debt capital generally has lower cost of capital compared to equity funding
What Should Investors Know About OTT-ONE Nyrt's (BUSE:OTT1) Capital Returns?
This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Therefore, looking at how efficiently OTT-ONE Nyrt is able to use capital to create earnings will help us understand your potential return. … OTT-ONE Nyrt's Return On Capital Employed
Does OTT-ONE Nyrt's (BUSE:OTT1) 46.19% Earnings Growth Reflect The Long-Term Trend?
When OTT-ONE Nyrt's (BUSE:OTT1) announced its latest earnings (31 December 2017), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were OTT-ONE Nyrt's average earnings over the past couple of years, and its industry performance. … How OTT1 fared against its long-term earnings performance and its industry
Will OTT-ONE Nyrt (BUSE:OTT1) Need To Raise More Money?
Looking at OTT-ONE Nyrt’s latest financial data, I will gauge when the company may run out of cash and need to raise more money. … How fast OTT-ONE Nyrt runs down its cash supply over time is known as the cash burn rate. … BUSE:OTT1 Income Statement Mar 19th 18 When will OTT-ONE Nyrt need to raise more cash?
Are OTT-ONE Nyrt's (BUSE:OTT1) Interest Costs Too High?
How does OTT1’s operating cash flow stack up against its debt? … With this growth in debt, OTT1 currently has FT75.70M remaining in cash and short-term investments for investing into the business. … BUSE:OTT1 Historical Debt Mar 12th 18 Can OTT1 service its debt comfortably?
OTT-ONE Nyrt. provides professional streaming, e-sport, and security solutions for business customers. The company offers live TV, video-on-demand, live streaming, content management, operation and program management, online content production, and media monitoring and production, as well as advertising and digital marketing services. It also provides security systems, including software and hardware security technologies, identification procedures, biometric identification solutions, and communication solutions. The company was incorporated in 2010 and is headquartered in Budapest, Hungary. OTT-ONE Nyrt. is a subsidiary of HomeSys Media Kft.
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