Discounted Cash Flow Calculation for WSE:BAH using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
British Automotive Holding
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:BAH DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
British Automotive Holding
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
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
British Automotive Holding's
is considered below, and whether this is a fair price.
Price based on past earnings
British Automotive Holding's earnings available for a low price, and how does
this compare to other companies in the same industry?
British Automotive Holding's earnings are expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).
Unable to determine if British Automotive Holding 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.
British Automotive Holding'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.
British Automotive Holding
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.
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
British Automotive Holding's finances.
The net worth of a company is the difference between its assets and liabilities.
British Automotive Holding's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
British Automotive Holding's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
British Automotive Holding'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 3.1x 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.
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. Mariusz Wojciech Ksiazek founded Marvipol S.A. serves as its President of Management Board. Mr. Ksiazek served as the Chief Executive Officer of Marvipol Spólka Akcyjna until January 22nd 2016. Mr. Ksiazek served as the President of Management Board at Marvipol S.A. until April 9, 2010. Mr. Ksiazek served as the Chairman of Member of Supervisory Board at Marvipol S.A. since May 2010. He got Manager of the Year 2005 (Home & Market award). Mr. Ksiazek holds Master's Degree in Law & Administration from Warsaw University.
Mariusz's compensation has been consistent with company performance over the past year, both up more than 20%.
Mariusz's remuneration is higher than average for companies of similar size in Poland.
Is British Automotive Holding S.A.'s (WSE:BAH) 46% Better Than Average?
British Automotive Holding has a ROE of 46%, based on the last twelve months. … That means that for every PLN1 worth of shareholders' equity, it generated PLN0.46 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Understanding Your Return On Investment In British Automotive Holding SA (WSE:BAH)
and want to begin learning the link between British Automotive Holding SA (WSE:BAH)’s return fundamentals and stock market performance. … Therefore, looking at how efficiently British Automotive Holding is able to use capital to create earnings will help us understand your potential return. … Check out our latest analysis for British Automotive Holding
Can British Automotive Holding SA's (WSE:BAH) ROE Continue To Surpass The Industry Average?
and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … With an ROE of 51.16%, British Automotive Holding SA (WSE:BAH) outpaced its own industry which delivered a less exciting 16.01% over the past year. … See our latest analysis for British Automotive Holding
Interested In British Automotive Holding SA (WSE:BAH)? Here's How It Performed Recently
Assessing British Automotive Holding SA's (WSE:BAH) past track record of performance is an insightful exercise for investors. … Today I will assess BAH's recent performance announced on 31 March 2018 and evaluate these figures to its long-term trend and industry movements. … See our latest analysis for British Automotive Holding?
Is British Automotive Holding SA's (WSE:BAH) PE Ratio A Signal To Sell For Investors?
The current price of BAH places the company at a discounted trailing PE of 5.46x,. … However, a static multiple such as PE is never conclusive on its own. … Below, I will lay out some important considerations to help determine which multiple best suits
Should British Automotive Holding SA (WSE:BAH) Be Part Of Your Portfolio?
A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … In the past 2 years British Automotive Holding SA (WSE:BAH) has returned an average of 3.00% per year to investors in the form of dividend payouts. … Does British Automotive Holding tick all the boxes of a great dividend stock?
Is British Automotive Holding SA.'s (WSE:BAH) PE Ratio A Signal To Buy For Investors?
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for BAH Price per share = PLN6.12 Earnings per share = PLN1.157 ∴ Price-Earnings Ratio = PLN6.12 ÷ PLN1.157 = 5.3x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … For example, if you accidentally compared higher growth firms with BAH, then BAH’s P/E would naturally be lower since investors would reward its peers’ higher growth with a higher price. … Alternatively, if you inadvertently compared less risky firms with BAH, BAH’s P/E would again be lower since investors would reward its peers’ lower risk with a higher price as well.
What does British Automotive Holding SA.'s (WSE:BAH) Balance Sheet Tell Us About Its Future?
Moving onto cash from operations, its small level of operating cash flow means calculating cash-to-debt wouldn't be too useful, though these low levels of cash means that operational efficiency is worth a look. … In BAH's case, the ratio of 18.3x suggests that interest is comfortably covered, which means that debtors may be willing to loan the company more money, giving BAH ample headroom to grow its debt facilities.Next Steps: BAH’s debt and cash flow levels indicate room for improvement. … Its cash flow coverage of less than a quarter of debt means that operating efficiency could be an issue.
Should You Expect British Automotive Holding SA. (WSE:BAH) To Continue Delivering An ROE Of 62.50%?
Check out our latest analysis for British Automotive Holding What you must know about ROE Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … British Automotive Holding’s cost of equity is 8.67%. … British Automotive Holding’s above-industry ROE is encouraging, and is also in excess of its cost of equity.
British Automotive Holding S.A. imports, sells, services, and markets cars and spare parts in Poland. It offers cars of various brands, including Jaguar, Land Rover, and Aston Martin; and repair services. The company also operates car wash stations under the Robo Wash Center name. In addition, it develops residential and commercial real estate projects; and provides real estate consultancy and agency services. The company was formerly known as Marvipol S.A. and changed its name to British Automotive Holding S.A. in December 2017. The company was founded in 1996 and is headquartered in Warsaw, Poland. British Automotive Holding S.A. is a subsidiary of Ksiazek Holding Sp. z.o.o.
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