Discounted Cash Flow Calculation for WSE:MEG using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
MEGARON Spólka Akcyjna
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:MEG DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
MEGARON Spólka Akcyjna
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
MEGARON Spólka Akcyjna
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
MEGARON Spólka Akcyjna's share price is below the future cash flow value, and at a moderate discount (> 20%).
MEGARON Spólka Akcyjna'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
MEGARON Spólka Akcyjna's
is considered below, and whether this is a fair price.
Price based on past earnings
MEGARON Spólka Akcyjna's earnings available for a low price, and how does
this compare to other companies in the same industry?
MEGARON Spólka Akcyjna's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Unable to determine if MEGARON Spólka Akcyjna 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.
MEGARON Spólka Akcyjna'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.
MEGARON Spólka Akcyjna
has a total score of
2/6, 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
MEGARON Spólka Akcyjna's finances.
The net worth of a company is the difference between its assets and liabilities.
MEGARON Spólka Akcyjna is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
MEGARON Spólka Akcyjna's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
MEGARON Spólka Akcyjna'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 2x 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.
A Close Look At MEGARON Spólka Akcyjna’s (WSE:MEG) 20% ROCE
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
What Investors Should Know About MEGARON Spólka Akcyjna's (WSE:MEG) Financial Strength
However, an important fact which most ignore is: how financially healthy is the business? … So, understanding the company's financial health becomes. … Here are few basic financial health checks you should consider before taking the plunge.
Don't Sell MEGARON Spólka Akcyjna (WSE:MEG) Before You Read This
To keep it practical, we'll show how MEGARON Spólka Akcyjna's (WSE:MEG) P/E ratio could help you assess the value on offer. … MEGARON Spólka Akcyjna has a P/E ratio of 31.48, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
What does MEGARON Spólka Akcyjna's (WSE:MEG) Balance Sheet Tell Us About Its Future?
While small-cap stocks, such as MEGARON Spólka Akcyjna (WSE:MEG) with its market cap of zł32m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … I believe these basic checks tell most of the story you need to know.
Is MEGARON Spólka Akcyjna (WSE:MEG) A Financially Sound Company?
Investors are always looking for growth in small-cap stocks like MEGARON Spólka Akcyjna (WSE:MEG), with a market cap of zł29.70m. … However, an important fact which most ignore is: how financially healthy is the business?
Want To Invest In MEGARON Spólka Akcyjna (WSE:MEG)? Here's How It Performed Lately
When MEGARON Spólka Akcyjna (WSE:MEG) announced its most recent earnings (30 September 2017), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … View our latest analysis for MEGARON Spólka Akcyjna Commentary On MEG's Past Performance I use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. … Each year, for the past five years MEGARON Spólka Akcyjna's revenue growth has been somewhat soft, with an annual growth rate of -0.18%, on average.
MEGARON Spólka Akcyjna produces and sells mineral mixtures in Poland and internationally. The company offers gypsum plasters, gypsum finishes, reinforced gypsum, mounting adhesives, and french gypsum. It serves small and medium-sized entities of the construction industry, individual consumers, building wholesalers, and construction traders. The company is based in Szczecin, Poland.
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