Discounted Cash Flow Calculation for ENXTLS:SNG 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.
ENXTLS:SNG DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
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
is considered below, and whether this is a fair price.
Price based on past earnings
Sonagi S.G.P.S's earnings available for a low price, and how does
this compare to other companies in the same industry?
Sonagi S.G.P.S's earnings are expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Sonagi S.G.P.S 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.
Sonagi S.G.P.S'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.
How Has Sonagi SGPS SA's (ELI:SNG) Performed Against The Industry?
Measuring Sonagi SGPS SA's (ELI:SNG) track record of past performance is a useful exercise for investors. … Today I will assess SNG's recent performance announced on 31 December 2017 and weigh these figures against its long-term trend and industry movements. … Did SNG perform worse than its track record and industry.
Sonagi SGPS SA (ELI:SNG): Did It Outperform The Industry?
When Sonagi SGPS SA (ELI:SNG) released its most recent earnings update (31 December 2016), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … Was SNG's recent earnings decline indicative of a tough track record. … SNG's trailing twelve-month earnings (from 31 December 2016) of €18.60m has
Should You Expect Sonagi SGPS SA (ELI:SNG) To Continue Delivering An ROE Of 13.34%?
and want to begin learning the link between Sonagi SGPS SA (ELI:SNG)’s return fundamentals and stock market performance. … Sonagi SGPS SA (ELI:SNG) delivered an ROE of 13.34% over the past 12 months, which is relatively in-line with its industry average of 11.73% during the same period. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden
How Financially Strong Is Sonagi SG.P.S., S.A. (ELI:SNG)?
With this debt payback, the current cash and short-term investment levels stands at €1.23M for investing into the business. … Additionally, SNG has produced cash from operations of €4.23M over the same time period, resulting in an operating cash to total debt ratio of 20.74%, indicating that SNG’s debt is appropriately covered by operating cash. … For SNG, the ratio of 6.21x suggests that interest is appropriately covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback.Next Steps: Although SNG’s debt level is relatively low, its cash flow levels still could not copiously cover its borrowings.
Sonagi, S.G.P.S., S.A. operates in the real estate sector in Portugal. Its portfolio includes industrial/logistics, office, residential, and retail properties. The company was formerly known as SONAGI-Sociedade Nacional de Gestão e Investimento, S.A. and changed its name to Sonagi, S.G.P.S., S.A. in September 2003. The company was founded in 1868 and is based in Lisbon, Portugal. As of January 27, 2018, Sonagi, S.G.P.S., S.A. operates as a subsidiary of SODIM, SGPS, SA.
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