Discounted Cash Flow Calculation for WSE:DNP 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.
WSE:DNP 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.
Dino Polska's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Dino Polska'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
Dino Polska's earnings available for a low price, and how does
this compare to other companies in the same industry?
Dino Polska's earnings are expected to grow significantly at over 20% yearly.
Dino Polska's revenue is expected to grow by 18.9% 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.
Dino Polska'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
6/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
WSE:DNP Historical Debt, July 10th 2019 A Look At Dino Polska's Liabilities According to the last reported balance sheet, Dino Polska had liabilities of zł1.30b due within 12 months, and liabilities of zł869.8m due beyond 12 months. … Because it carries more debt than cash, we think it's worth watching Dino Polska's balance sheet over time. … Debt is usually more expensive, and almost always more risky in the hands of a company with negative free cash flow.
Is Dino Polska S.A.'s (WSE:DNP) High P/E Ratio A Problem For Investors?
We'll apply a basic P/E ratio analysis to Dino Polska S.A.'s (WSE:DNP), to help you decide if the stock is worth further research. … View our latest analysis for Dino Polska How Do I Calculate Dino Polska's Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Dino Polska: P/E of 40.28 = PLN130.9 ÷ PLN3.25 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good?
Here's Why I Think Dino Polska (WSE:DNP) Is An Interesting Stock
But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Dino Polska (WSE:DNP). … See our latest analysis for Dino Polska Dino Polska's Earnings Per Share Are Growing. … Given my belief that share price follows earnings per share you can easily imagine how I feel about Dino Polska's strong EPS growth.
What Should You Know About The Future Of Dino Polska S.A.'s (WSE:DNP)?
Based on Dino Polska S.A.'s (WSE:DNP) earnings update in March 2019, the consensus outlook from analysts appear fairly confident, as a 37% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of 29%. … Below is a brief commentary around Dino Polska's earnings outlook going forward, which may give you a sense of market sentiment for the company. … Check out our latest analysis for Dino Polska What can we expect from Dino Polska in the longer term?
Should You Be Concerned About Dino Polska S.A.'s (WSE:DNP) Historical Volatility?
Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … Check out our latest analysis for Dino Polska What DNP's beta value tells investors With a beta of 0.93, (which is quite close to 1) the share price of Dino Polska has historically been about as voltile as the broader market.
Why Dino Polska S.A.’s (WSE:DNP) Return On Capital Employed Is Impressive
Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Dino Polska: 0.21 = zł445m ÷ (zł3.4b - zł1.3b) (Based on the trailing twelve months to March 2019.) So, Dino Polska has an ROCE of 21%. … Do Dino Polska's Current Liabilities Skew Its ROCE? … With this level of current liabilities, Dino Polska's ROCE is boosted somewhat.
Will Dino Polska S.A.'s (WSE:DNP) Earnings Grow Over The Next Few Years?
The most recent earnings announcement Dino Polska S.A.'s (WSE:DNP) released in December 2018 suggested that the company benefited from a strong tailwind, leading to a double-digit earnings growth of 44%. … Below, I've presented key growth figures on how market analysts predict Dino Polska's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. … Check out our latest analysis for Dino Polska Market analysts' consensus outlook for next year seems positive, with earnings expanding by a robust 32%.
Calculating The Intrinsic Value Of Dino Polska S.A. (WSE:DNP)
Today, we will estimate the stock's intrinsic value. … by taking the expected future cash flows and discounting them to today's value. … We generally believe that a company's value is the present value of all of the cash it will generate in the future.
Are Dino Polska S.A.'s (WSE:DNP) Interest Costs Too High?
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. … Evaluating financial health as part of your investment thesis is. … Let's work through some financial health checks you may wish to consider if you're interested in this stock.
Why Dino Polska S.A. (WSE:DNP) Is A Star In A Falling Market
is a financially healthy and robust stock with a proven track record of outperformance. … We all know Dino Polska, and having this large-cap to cushion your portfolio during a volatile period in the stock market isn't a bad idea. … Check out our latest analysis for Dino Polska.
Dino Polska S.A. operates a chain of supermarkets in Poland. It offers food products, household chemicals, cosmetics, vegetables, fruits, meats, and sausages. As of December 31, 2018, the company operated 977 stores in western Poland. Dino Polska S.A. is based in Krotoszyn, Poland.
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