Draper Esprit plc, formerly known as Ingleby (1994) plc, is a private equity and venture capital firm specializing in any stage in the lifecycle of a business from seed and series A stage, growth capital to pre-IPO investments, late stage, cross-stage investments, buyouts, PIPES, and also makes direct and secondary investments in portfolio companies.
The last earnings update was 199 days ago.
Discounted Cash Flow Calculation for ISE:GRW using Excess Returns Model Model
The calculations below outline how an intrinsic value for Draper Esprit is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
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.
Draper Esprit's share price is below the future cash flow value, and at a moderate discount (> 20%).
Draper Esprit'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
Draper Esprit's earnings available for a low price, and how does
this compare to other companies in the same industry?
Draper Esprit's earnings are expected to grow by 19.7% yearly, however this is not considered high growth (20% yearly).
Draper Esprit's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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.
Draper Esprit'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
5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
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. Simon Christopher Cook is a Co-founder since 2005 and serves as Chief Executive Officer of Draper Esprit. He has been a Director of Draper Esprit since June 15, 2016. He serves as a Partner Shareholder at Elderstreet Investments Ltd. He serves on the Executive Board of Ledger SAS. Prior to this, he served as a Partner at Elderstreet Investments. Previously he served as a Partner at Cazenove Private Equity. He started his career as computer games developer. He was involved with Venture Capital industry since 1995 will number of successful startups including lovefilm, Cambridge silicon radio, virata, nCipher and KVS. Prior to this, he served as a Director at 3i, graze and crowdcube. He is a Computer Science graduate from the University of Manchester Institute of Science and Technology.
Simon's compensation has been consistent with company performance over the past year, both up more than 20%.
Simon's remuneration is lower than average for companies of similar size in Ireland.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Draper Esprit management team is about average.
Chief Financial Officer
Group Administration Manager
Head of Marketing & Research
Head of Secondary Investments
Partner - Encore Ventures
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Draper Esprit board of directors is less than 3 years, this suggests a new board.
Draper Esprit plc, formerly known as Ingleby (1994) plc, is a private equity and venture capital firm specializing in any stage in the lifecycle of a business from seed and series A stage, growth capital to pre-IPO investments, late stage, cross-stage investments, buyouts, PIPES, and also makes direct and secondary investments in portfolio companies. It also seeks to buy entire funds from other tech investors. The firm primarily invests in companies from pre-revenue stage upwards. It primarily invests in technology oriented business. The firm typically invests in digital technology, consumer, commerce, enterprise and data, systems and semiconductors, financial technology, internet, mobile, media, telecom, and healthcare sectors, software, hardware, medical technology, and life sciences sectors. It invests in companies based in Europe, Ireland, and United Kingdom. The firm seeks to invest between $0.02 million and €10 million ($10.88 million) in rounds up to €1 million ($1.09 million) and €30 million ($32.63 million). It invests 30 percent of its corpus in very early stage companies with less than $5 million in revenues. The firm seeks to make minority and majority investments. Draper Esprit plc was founded in 1984 and is based in London, United Kingdom with additional offices in Cambridge, United Kingdom; Dublin, Ireland; Helsinki, Finland; and Paris, France.
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