Discounted Cash Flow Calculation for SGX:CLN 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:CLN 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.
APAC Realty's share price is below the future cash flow value, and at a moderate discount (> 20%).
APAC Realty'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
APAC Realty's earnings available for a low price, and how does
this compare to other companies in the same industry?
APAC Realty's earnings are expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).
APAC Realty's revenue is expected to grow by 0.7% 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.
APAC Realty'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
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Don't Sell APAC Realty Limited (SGX:CLN) Before You Read This
APAC Realty has a price to earnings ratio of 8.83, based on the last twelve months. … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for APAC Realty: P/E of 8.83 = SGD0.50 ÷ SGD0.057 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … The Bottom Line On APAC Realty's P/E Ratio APAC Realty trades on a P/E ratio of 8.8, which is below the SG market average of 12.3.
What Kind Of Shareholder Appears On The APAC Realty Limited's (SGX:CLN) Shareholder Register?
Every investor in APAC Realty Limited (SGX:CLN) should be aware of the most powerful shareholder groups. … As Charlie Munger said 'Show me the incentive and I will show you the outcome.' APAC Realty is a smaller company with a market capitalization of S$178m, so it may still be flying under the radar of many institutional investors. … View our latest analysis for APAC Realty SGX:CLN Ownership Summary, May 21st 2019 What Does The Institutional Ownership Tell Us About APAC Realty?
Should APAC Realty Limited (SGX:CLN) Be Part Of Your Dividend Portfolio?
Could APAC Realty Limited (SGX:CLN) be an attractive dividend share to own for the long haul? … Investors are often drawn to a company for its dividend. … Some readers mightn't know much about APAC Realty's 8.7% dividend, as it has only been paying distributions for a year or so.
Are Investors Undervaluing APAC Realty Limited (SGX:CLN) By 22%?
by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. … We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows
Are APAC Realty Limited's (SGX:CLN) Interest Costs Too High?
However, an important fact which most ignore is: how financially healthy is the business? … Assessing first and foremost the financial health is. … Let's work through some financial health checks you may wish to consider if you're interested in this stock.
Those Who Purchased APAC Realty (SGX:CLN) Shares A Year Ago Have A 48% Loss To Show For It
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. … The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers)
Does APAC Realty Limited's (SGX:CLN) P/E Ratio Signal A Buying Opportunity?
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Based on the last twelve months, APAC Realty's P/E ratio is 7.41. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Should You Be Impressed By APAC Realty Limited's (SGX:CLN) ROE?
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every SGD1 worth of equity in the company, it was able to earn SGD0.20. … Return on Equity = Net Profit ÷ Shareholders' Equity
Can We See Significant Insider Ownership On The APAC Realty Limited (SGX:CLN) Share Register?
Every investor in APAC Realty Limited (SGX:CLN) should be aware of the most powerful shareholder groups. … APAC Realty is a smaller company with a market capitalization of S$160m, so it may still be flying under the radar of many institutional investors. … Check out our latest analysis for APAC Realty
APAC Realty Limited, an investment holding company, provides real estate services in Singapore. It operates through three segments: Real Estate Brokerage Services; Franchise Arrangements; and Training, Valuation and Other Ancillary Services. The company offers property brokerage services for primary and secondary home sales, as well as for the rental of residential, commercial, and industrial properties under the ERA brand name. It also holds the ERA regional master franchise rights for 17 countries in the Asia Pacific; and franchise rights for Singapore for Coldwell Banker, a real estate office and franchising company in the United States. In addition, the company provides training programs and courses for real estate agents in preparation for professional certification exams; undertakes valuation works on behalf of clients, such as financial institutions, government agencies, and property owners; and provides management services for real estate developments. Further, it engages in the rental of properties, workstations, lockers, and furniture products; and provision of professional indemnity insurance, administration, and business conference services. The company was founded in 1982 and is headquartered in Singapore. APAC Realty Limited is a subsidiary of Asia Pacific Realty Holdings Ltd.
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