Discounted Cash Flow Calculation for OM:FASTAT 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.
OM:FASTAT 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
Aktiebolaget Fastator's earnings available for a low price, and how does
this compare to other companies in the same industry?
Aktiebolaget Fastator's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Aktiebolaget Fastator's revenue is expected to grow significantly at over 20% yearly.
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.
Aktiebolaget Fastator'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
6/6, 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
Aktiebolaget Fastator's finances.
The net worth of a company is the difference between its assets and liabilities.
Aktiebolaget Fastator is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Aktiebolaget Fastator's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Aktiebolaget Fastator'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 not covered by short term assets, assets are 0.1x 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.
Is Aktiebolaget Fastator (publ) (STO:FASTAT) A Financially Sound Company?
At the current liabilities level of kr168m, it seems that the business may not have an easy time meeting these commitments with a current assets level of kr147m, leading to a current ratio of 0.88x. … The current ratio is the number you get when you divide current assets by current liabilities. … Next Steps: Although FASTAT’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet debt obligations which means its debt is being efficiently utilised.
Can You Imagine How Aktiebolaget Fastator's (STO:FASTAT) Shareholders Feel About The 76% Share Price Increase?
To wit, the Aktiebolaget Fastator (publ) (STO:FASTAT) share price is 76% higher than it was a year ago, much better than the market return of around 5.0% (not including dividends) in the same period. … While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … 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.
Is Aktiebolaget Fastator (publ)'s (STO:FASTAT) Balance Sheet A Threat To Its Future?
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.
Aktiebolaget Fastator (publ) invests in real estate-centric companies run by entrepreneurs in Sweden. The company, through its investment in real estate companies, owns, manages, serves, and/or develops properties in private and public sectors. Aktiebolaget Fastator (publ) was founded in 2005 and is based in Stockholm, Sweden.
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