Discounted Cash Flow Calculation for SGX:G13 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.
SGX:G13 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.
Genting Singapore's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Genting Singapore's share price is below the future cash flow value, but not 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
Genting Singapore's earnings available for a low price, and how does
this compare to other companies in the same industry?
Genting Singapore's earnings are expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
Genting Singapore's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (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.
Genting Singapore'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
5/6, 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
Genting Singapore's finances.
The net worth of a company is the difference between its assets and liabilities.
Genting Singapore is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Genting Singapore's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Genting Singapore'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 4.4x 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.
Do Institutions Own Shares In Genting Singapore Limited (SGX:G13)?
Generally speaking, as a company grows, institutions will increase their ownership. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Taking a look at our data on the ownership groups (below), it's seems that.
Genting Singapore Limited's (SGX:G13) Most Important Factor To Consider
I’ve analysed below, the health and outlook of Genting Singapore’s cash flow, which will help you understand the stock from a cash standpoint. … Genting Singapore’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … There are two methods I will use to evaluate the quality of Genting Singapore’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability
Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Genting Singapore Limited (SGX:G13), with a market cap of S$13b, are often out of the spotlight. … This article will examine G13’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.
The Genting Singapore Share Price Has Gained 50% And Shareholders Are Hoping For More
Just take a look at Genting Singapore Limited (SGX:G13), which is up 50%, over three years, soundly beating the market return of 28%. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Genting Singapore was able to grow its EPS at 13% per year over three years, sending the share price higher.
What Should You Know About The Future Of Genting Singapore Limited's (SGX:G13)?
Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … In September 2018, Genting Singapore Limited (SGX:G13) released its earnings update.
A Closer Look At Genting Singapore Limited's (SGX:G13) Impressive ROE
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every SGD1 worth of shareholders' equity, it generated SGD0.097 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Did Genting Singapore Limited (SGX:G13) Insiders Sell Shares?
Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. … All up, insiders sold more shares in Genting Singapore than they bought, over the last year. … It is certainly not great to see that insiders have sold shares in the company
Examining Genting Singapore Limited’s (SGX:G13) Weak Return On Capital Employed
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … How Do You Calculate Return On Capital Employed
Do Institutions Own Genting Singapore Limited (SGX:G13) Shares?
The big shareholder groups in Genting Singapore Limited (SGX:G13) have power over the company. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Genting Singapore has a market capitalization of S$12b, so it's too big to fly under the radar.
Genting Singapore Limited engages in the development, management, and operation of integrated resort destinations in Asia. Its integrated resort destinations comprise gaming, hospitality, MICE, leisure, and entertainment facilities. The company primarily owns Resorts World Sentosa, a destination resort, which offers a casino, Adventure Cove Waterpark, S.E.A. Aquarium, Universal Studios Singapore Theme Park, MICE facilities, hotels, restaurants, SPA, and specialty retail outlets. It is also involved in the operation of casinos; and provision of sales and marketing support services to leisure and hospitality related businesses, as well as in the investment activities. The company was incorporated in 1984 and is based in Singapore. Genting Singapore Limited is a subsidiary of Genting Group.
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