Discounted Cash Flow Calculation for MISX:MAGE 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.
MISX:MAGE 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.
Magadanenergo's share price is below the future cash flow value, and at a moderate discount (> 20%).
Magadanenergo'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
Magadanenergo's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Magadanenergo has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Electric Utilities industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Magadanenergo's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Magadanenergo's earnings growth to the Russian Federation market average as no estimate data is available.
Unable to compare Magadanenergo's revenue growth to the Russian Federation market average as no estimate data is available.
Unable to determine if Magadanenergo is high growth as no earnings estimate data is available.
Unable to determine if Magadanenergo 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.
Magadanenergo'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
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
The Magadanenergo (MCX:MAGE) Share Price Has Gained 45% And Shareholders Are Hoping For More
But Public Joint Stock Company Magadanenergo (MCX:MAGE) has fallen short of that second goal, with a share price rise of 45% over five years, which is below the market return. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During the five years of share price growth, Magadanenergo moved from a loss to profitability.
Is Public Joint Stock Company Magadanenergo’s (MCX:MAGE) 35% ROCE Any Good?
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
What Do You Get For Owning Public Joint Stock Company Magadanenergo (MCX:MAGE)?
and want to begin learning the link between Public Joint Stock Company Magadanenergo (MCX:MAGE)’s return fundamentals and stock market performance. … As a result, your investment is being put to work to fund operations and if you want to earn an attractive return on your investment, the business needs to be making an adequate amount of money from the funds you provide … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock.
When Will Public Joint Stock Company Magadanenergo (MCX:MAGE) Run Out Of Cash?
View our latest analysis for Magadanenergo What is cash burn? … The measure of how fast Magadanenergo goes through its cash reserves over time is called the cash burn rate. … MISX:MAGE Income Statement Apr 3rd 18 When will Magadanenergo need to raise more cash?
Who Are The Major Shareholders Of Public Joint Stock Company Magadanenergo (MCX:MAGE)?
Today, I will be analyzing Public Joint Stock Company Magadanenergo’s (MISX:MAGE) recent ownership structure, an important but not-so-popular subject among individual investors. … This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions. … Private Company Ownership Another important group of owners for potential investors in MAGE are private companies that hold a stake of 8.71% in MAGE.
Public Joint Stock Company Magadanenergo (MCX:MAGE): Does The -57.23% Earnings Drop Reflect A Longer Term Trend?
Each year, for the past half a decade Magadanenergo's top-line has increased by 20.94% on average, signalling that the company is in a high-growth phase with expenses racing ahead revenues, leading to annual losses. … Though Magadanenergo's past data is helpful, it is only one aspect of my investment thesis. … I recommend you continue to research Magadanenergo to get a better picture of the stock by looking at: 1.
Public Joint Stock Company Magadanenergo engages in the generation, transmission, and distribution of electricity and heat in Russia. The company is also involved in the repair, reconstruction, and modernization of energy facilities and transport services, and building and power grid facilities. In addition, it offers support services for maintenance of buildings and transport; conducts repairs for transformers and generators, as well as other installations; and manufactures and repairs equipment of power units of heat, coils, boilers heating surfaces, half couplings, fittings, flues, etc., as well as turners, fitters, and millers. The company provides its electricity in the Magadan region, Chukotka Autonomous district, and Nizhnekolymsky Oymyakon ulus; and heat in Magadan, Anadyr, Pevek, Myaundzha, and Egvekinot. It has electric power stations with an installed capacity of 438.5 MW; and thermal power stations with installed capacity of 749 Gcal/h. Public Joint Stock Company Magadanenergo was founded in 1933 and is based in Magadan, Russia.
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