Discounted Cash Flow Calculation for OTCPK:DBIN using Excess Returns Model Model
The calculations below outline how an intrinsic value for Dacotah Banks is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
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
Dacotah Banks's earnings available for a low price, and how does
this compare to other companies in the same industry?
Dacotah Banks's earnings are expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Dacotah Banks 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.
Dacotah Banks'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
4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Joseph A. Senger, also known as Joe, has been the Chief Executive Officer and President of Dacotah Banks, Inc. and Dacotah Bank since January 1, 2015. Mr. Senger served as an Executive Vice President of Dacotah Banks, Inc. since 2010. Mr. Senger joined Dacotah Banks company in 2002. He served for 26 years of service with other organizations in the banking and financial services industry. He served as Senior Vice President of Credit Administration at Dacotah Banks. He has extensive management, credit underwriting and community development expertise. Mr. Senger has been a Director of Dacotah Banks, Inc. and Dacotah Bank since January 1, 2015.
Insufficient data for Joe to compare compensation growth.
Insufficient data for Joe to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Dacotah Banks management team is about average.
Chairman of the Board
Senior VP & CFO
Executive VP & Director
Senior VP & Chief Talent Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Dacotah Banks board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Dacotah Banks, Inc. operates as the bank holding company for Dacotah Bank that provides various banking services to individuals and businesses. The company accepts demand and certificates of deposit; and checking, individual retirement, and money market accounts. It also offers personal loans, such as student, recreational, home, and vehicle loans, as well as overdraft protection facilities; business loans; agricultural loans; real estate loans; equipment loans and leasing facilities; lines of credit facilities; debit, credit, and gift cards; and cash management services. In addition, the company offers mortgage loans comprising conventional, fixed rate, and adjustable rate, first-time homebuyer, veterans administration, construction, and jumbo mortgage loans, as well as home equity accounts financing. Further, it provides auto, homeowners, health, and life insurance products; business owners, commercial auto, workers compensation, business property, commercial umbrella, home-based business, in-home daycares, and health savings insurance products; and agricultural insurance products. Additionally, the company offers investment and wealth management services, such as bill payment and elder care, retirement planning, charitable giving, and foundation and endowment services; estate and trust services, including trustee, estate settlement, and dynasty trust services; and phone and online banking services. It operates through 32 full service locations in Minnesota, North Dakota, and South Dakota. Dacotah Banks, Inc. was founded in 1964 and is headquartered in Aberdeen, South Dakota.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.