Discounted Cash Flow Calculation for MISX:LNZL using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Lena Gold-Mining Lenzoloto
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:LNZL DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
Lena Gold-Mining Lenzoloto
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
Lena Gold-Mining Lenzoloto's
is considered below, and whether this is a fair price.
Price based on past earnings
Lena Gold-Mining Lenzoloto's earnings available for a low price, and how does
this compare to other companies in the same industry?
Lena Gold-Mining Lenzoloto's earnings are expected to grow by 15.4% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Lena Gold-Mining Lenzoloto 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.
Lena Gold-Mining Lenzoloto'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.
Lena Gold-Mining Lenzoloto
has a total score of
0/6, 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
Lena Gold-Mining Lenzoloto's finances.
The net worth of a company is the difference between its assets and liabilities.
Lena Gold-Mining Lenzoloto is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Lena Gold-Mining Lenzoloto's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Lena Gold-Mining Lenzoloto'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 5.2x 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.
Investors Who Bought Lena Gold-Mining Lenzoloto Shares Three Years Ago Are Now Down 29%
While it may not be enough for some shareholders, we think it is good to see the Lena Gold-Mining Public Joint Stock Company Lenzoloto (MCX:LNZL) share price up 22% in a single quarter. … In fact, the share price is down 29% in the last three years, falling well short of the market return. … During the three years that the share price fell, Lena Gold-Mining Lenzoloto's earnings per share (EPS) dropped by 63% each year.
Should You Worry About Lena Gold-Mining Public Joint Stock Company Lenzoloto’s (MCX:LNZL) ROCE?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Lena Gold-Mining Public Joint Stock Company Lenzoloto (MCX:LNZL): Time For A Financial Health Check
While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … So, understanding the company's financial health becomes. … Here are few basic financial health checks you should consider before taking the plunge.
Should You Be Concerned With Lena Gold-Mining Public Joint Stock Company Lenzoloto's (MCX:LNZL) -64.42% Earnings Drop?
Today I will take a look at Lena Gold-Mining Public Joint Stock Company Lenzoloto's (MISX:LNZL) most recent earnings update (30 June 2017) and compare these latest figures against its performance over the past few years, as well as how the rest of the metals and mining industry performed. … View our latest analysis for Lena Gold-Mining Lenzoloto Was LNZL's recent earnings decline indicative of a tough track record? … For Lena Gold-Mining Lenzoloto, its most recent trailing-twelve-month earnings is RUРУБ1.03B, which, against the prior year's level, has fallen by a significant -64.42%.
Will Lena Gold-Mining Public Joint Stock Company Lenzoloto (MCX:LNZL) Continue To Underperform Its Industry?
Lena Gold-Mining Public Joint Stock Company Lenzoloto (MISX:LNZL) generated a below-average return on equity of 12.48% in the past 12 months, while its industry returned 24.78%. … Check out our latest analysis for Lena Gold-Mining Lenzoloto Breaking down ROE — the mother of all ratios Return on Equity (ROE) weighs Lena Gold-Mining Lenzoloto’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Lena Gold-Mining Lenzoloto’s equity capital deployed.
Should You Be Tempted To Sell Lena Gold-Mining Public Joint Stock Company Lenzoloto (MCX:LNZL) At Its Current PE Ratio?
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for LNZL Price per share = RUB7190 Earnings per share = RUB902.394 ∴ Price-Earnings Ratio = RUB7190 ÷ RUB902.394 = 8x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … We preferably want to compare the stock’s P/E ratio to the average of companies that have similar features to LNZL, such as capital structure and profitability. … For example, if you are inadvertently comparing riskier firms with LNZL, then LNZL’s P/E would naturally be higher than its peers since investors would reward its lower risk with a higher price.
Lena Gold-Mining Public Joint Stock Company Lenzoloto engages in the mining, exploration, developing, and production of gold properties. It is also involved in the rental of an airport complex; repairing and maintaining industrial assets; collection of scrap and waste containing precious metals; design and survey works; geotechnical studies; and provision of transport services. The company was founded in 1992 and is headquartered in Bodaybo, Russia. Lena Gold-Mining Public Joint Stock Company Lenzoloto is a subsidiary of Gold Mining Company Polus Private Joint Stock Company.
Lena Gold-Mining Public Joint Stock Company Lenzoloto
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