Discounted Cash Flow Calculation for BIT:CELL 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.
BIT:CELL 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.
Cellularline's share price is below the future cash flow value, and at a moderate discount (> 20%).
Cellularline'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
Cellularline's earnings available for a low price, and how does
this compare to other companies in the same industry?
Cellularline's earnings are expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).
Cellularline's revenue is expected to grow by 9.5% 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.
Cellularline'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.
Should Cellularline S.p.A. (BIT:CELL) Be Your Next Stock Pick?
(BIT:CELL) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … is a company that has been able to sustain great financial health, trading at an attractive share price.
Here's What Cellularline S.p.A.'s (BIT:CELL) ROCE Can Tell Us
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
A Closer Look At Cellularline S.p.A.'s (BIT:CELL) Uninspiring ROE
This article is for those who would like to learn about Return On Equity (ROE). … That means that for every €1 worth of shareholders' equity, it generated €0.10 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
What You Must Know About Cellularline SpA's (BIT:CELL) Financial Strength
Cellularline SpA (BIT:CELL) is a small-cap stock with a market capitalization of €167m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … So, understanding the company's financial health becomes
How Did Cellularline SpA's (BIT:CELL) 10% ROE Fare Against The Industry?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every €1 worth of equity in the company, it was able to earn €0.10. … Return on Equity = Net Profit ÷ Shareholders' Equity
Is Cellularline SpA's (BIT:CELL) Balance Sheet A Threat To Its Future?
Cellularline SpA (BIT:CELL) is a small-cap stock with a market capitalization of €180.97m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … So, understanding the company's financial health becomes
Cellularline S.p.A. manufactures and sells accessories for smartphones and tablets in Italy and internationally. It offers protection and style products, such as front and back cases, bumpers, sleeve cases, tablet cases, screen protection products, protective films, and tempered safety glasses; and charging and utility products, including battery chargers, car battery chargers, main and portable battery chargers, cables, photography products, cars and home supports, adaptors, and useful accessories. The company also provides voice and sport accessories, such as wired and Bluetooth headsets, earphones, spund cables, sports cases and bracelets, Bluetooth speakers and handfree products, and wired speakers; and interphone accessories, and motorcycle supports and accessories. Cellularline S.p.A. was founded in 1990 and is based in Reggio Emilia, Italy.
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