Discounted Cash Flow Calculation for MISX:KOGK using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Korshynov Mining Plant
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.
MISX:KOGK DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
Korshynov Mining Plant
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
Korshynov Mining Plant
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Korshynov Mining Plant's share price is below the future cash flow value, and at a moderate discount (> 20%).
Korshynov Mining Plant'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
Korshynov Mining Plant's
is considered below, and whether this is a fair price.
Price based on past earnings
Korshynov Mining Plant's earnings available for a low price, and how does
this compare to other companies in the same industry?
Korshynov Mining Plant's earnings are expected to grow by 13.3% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Korshynov Mining Plant 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.
Korshynov Mining Plant'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
Metals and Mining
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.
Korshynov Mining Plant
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
Korshynov Mining Plant's finances.
The net worth of a company is the difference between its assets and liabilities.
Korshynov Mining Plant is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Korshynov Mining Plant's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Korshynov Mining Plant'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.
Low level of unsold assets.
Debt is covered by short term assets, assets are 78.8x 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.
Should You Worry About Korshynov Mining Plant Public Joint Stock Company’s (MCX:KOGK) ROCE?
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
Don't Sell Korshynov Mining Plant Public Joint Stock Company (MCX:KOGK) Before You Read This
To keep it practical, we'll show how Korshynov Mining Plant Public Joint Stock Company's (MCX:KOGK) P/E ratio could help you assess the value on offer. … Korshynov Mining Plant has a price to earnings ratio of 6.85, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Is Korshynov Mining Plant Public Joint Stock Company's (MCX:KOGK) High P/E Ratio A Problem For Investors?
We'll look at Korshynov Mining Plant Public Joint Stock Company's (MCX:KOGK) P/E ratio and reflect on what it tells us about the company's share price. … Korshynov Mining Plant has a price to earnings ratio of 6.92, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Should You Be Tempted To Sell Korshynov Mining Plant Public Joint Stock Company (MCX:KOGK) Because Of Its PE Ratio?
and want to begin learning the link between Korshynov Mining Plant Public Joint Stock Company (MCX:KOGK)’s fundamentals and stock market performance. … Korshynov Mining Plant Public Joint Stock Company (MCX:KOGK) is trading with a trailing P/E of 6.7x, which is higher than the industry average of 6.5x. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind
Who Are The Top Investors In Korshynov Mining Plant Public Joint Stock Company (MCX:KOGK)?
In this analysis, my focus will be on developing a perspective on Korshynov Mining Plant Public Joint Stock Company’s (MISX:KOGK) latest ownership structure, a less discussed, but important factor. … KOGK hardly has any institutional ownership, leaving investors little to think about sharp price volatility in the stock that could take place due to institutional trading. … Private Company Ownership Another important group of owners for potential investors in KOGK are private companies that hold a stake of 5.03% in KOGK.
One Thing To Consider Before Buying Korshynov Mining Plant Public Joint Stock Company (MCX:KOGK)
A widely-used metric to measure a stock's market risk is beta, and the broad market index represents a beta value of one. … Check out our latest analysis for Korshynov Mining Plant An interpretation of KOGK's beta Korshynov Mining Plant’s beta of 0.25 indicates that the company is less volatile relative to the diversified market portfolio. … KOGK's beta implies it may be a stock that investors with high-beta portfolios might find relevant if they wanted to reduce their exposure to market risk, especially during times of downturns.
What You Must Know About Korshynov Mining Plant Public Joint Stock Company's (MCX:KOGK) 13.48% ROE
Check out our latest analysis for Korshynov Mining Plant Peeling the layers of ROE – trisecting a company’s profitability Return on Equity (ROE) weighs Korshynov Mining Plant’s profit against the level of its shareholders’ equity. … For now, let’s just look at the cost of equity number for Korshynov Mining Plant, which is 13.41%. … Some of Korshynov Mining Plant’s peers may have a higher ROE but its cost of equity could exceed this return, leading to an unsustainable negative discrepancy i.e.
Is Korshynov Mining Plant Public Joint Stock Company (MCX:KOGK) A Buy At Its Current PE Ratio?
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for KOGK Price per share = RUB91700 Earnings per share = RUB18862.701 ∴ Price-Earnings Ratio = RUB91700 ÷ RUB18862.701 = 4.9x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … Ideally, we want to compare the stock’s P/E ratio to the average of companies that have similar characteristics as KOGK, such as size and country of operation. … For example, if you are inadvertently comparing lower risk firms with KOGK, then KOGK’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price.
How Does Korshynov Mining Plant Public Joint Stock Company's (MCX:KOGK) Earnings Growth Stack Up Against Industry Performance?
In this commentary, I will examine Korshynov Mining Plant Public Joint Stock Company's (MISX:KOGK) latest earnings update (31 December 2017) and compare these figures against its performance over the past couple of years, as well as how the rest of the metals and mining industry performed. … See our latest analysis for Korshynov Mining Plant How KOGK fared against its long-term earnings performance and its industry I look at data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. … Since these figures are fairly myopic, I’ve determined an annualized five-year value for KOGK's earnings, which stands at RUРУБ2.96B This shows that, on average, Korshynov Mining Plant has been able to consistently raise its earnings over the past couple of years as well.
Korshynov Mining Plant Public Joint Stock Company produces and dresses iron ore. The company operates the Korshunov and the Rudnogorsk quarries. It serves steelmakers in Russia, China, and internationally. Korshynov Mining Plant Public Joint Stock Company is based in Zheleznogorsk-Ilimsky, Russia.
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