Discounted Cash Flow Calculation for WSE:JWA 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:JWA 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.
JWA's share price is below the future cash flow value, and at a moderate discount (> 20%).
JWA'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
is considered below, and whether this is a fair price.
Price based on past earnings
JWA's earnings available for a low price, and how does
this compare to other companies in the same industry?
JWA's earnings are expected to grow by 13.6% yearly, however this is not considered high growth (20% yearly).
Unable to determine if JWA 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.
JWA'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
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Basically, it is a company that has been able to sustain great financial health, trading at an attractive share price. … Also, relative to the rest of its peers with similar levels of earnings, JWA's share price is trading below the group's average. … We aim to bring you long-term focused research analysis driven by fundamental data.
Volatility 101: Should JWA (WSE:JWA) Shares Have Dropped 44%?
(WSE:JWA) shareholders should be happy to see the share price up 14% in the last week. … But in truth the last year hasn't been good for the share price. … Unfortunately that wasn't good enough to stop the share price dropping 44%.
(WSE:JWA), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … However, the trade-off is JWA will have to adhere to stricter debt covenants and have less financial flexibility. … Is JWA growing fast enough to value financial flexibility over lower cost of capital.
Why JWA S.A.’s (WSE:JWA) Use Of Investor Capital Doesn’t Look Great
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. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
(WSE:JWA) have power over the company. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … JWA is not a large company by global standards.
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll look at JWA SA's (WSE:JWA) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … To understand JWA’s capital returns we will look at a useful metric called return on capital employed.
Why JWA SA (WSE:JWA) Delivered An Inferior ROE Compared To The Industry
and want to learn about Return on Equity using a real-life example. … JWA SA (WSE:JWA) generated a below-average return on equity of 7.07% in the past 12 months, while its industry returned 14.94%. … Breaking down Return on Equity
What Should You Know About JWA SA's (WSE:JWA) Capital Returns?
Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Your return is tied to JWA’s ability to do this because the amount earned is used to invest in opportunities to grow the business or payout dividends, which are the two sources of return on investment. … To understand JWA’s capital returns we will look at a useful metric called return on capital employed.
Is JWA SA (WSE:JWA) A Sell At Its Current PE Ratio?
This article is intended for those of you who are at the beginning of your investing journey. … and want to better understand how you can grow your money by investing in JWA SA (WSE:JWA). … While JWA might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions
JWA S.A. develops and sells software products. The company engages in the design, production, implementation, and maintenance of software to meet the business needs of the customers. It also develops Websites and mobile applications, including games; and designs online stores. JWA S.A. is based in Warszawa, Poland.
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