Discounted Cash Flow Calculation for NasdaqCM:ARYA using Excess Returns Model Model
The calculations below outline how an intrinsic value for ARYA Sciences Acquisition 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
ARYA Sciences Acquisition
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
ARYA Sciences Acquisition's
is considered below, and whether this is a fair price.
Price based on past earnings
ARYA Sciences Acquisition's earnings available for a low price, and how does
this compare to other companies in the same industry?
ARYA Sciences Acquisition's earnings are expected to grow by 15.3% yearly, however this is not considered high growth (20% yearly).
Unable to determine if ARYA Sciences Acquisition 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.
ARYA Sciences Acquisition'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.
ARYA Sciences Acquisition
has a total score of
1/6, 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
ARYA Sciences Acquisition's finances.
The net worth of a company is the difference between its assets and liabilities.
ARYA Sciences Acquisition is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
ARYA Sciences Acquisition's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
ARYA Sciences Acquisition'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.
Low level of unsold assets.
ARYA Sciences Acquisition has no debt, it does not need to be covered by short term assets.
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.
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.
Mr. Adam Leo Stone serves as Chief Executive Officer and Director of ARYA Sciences Acquisition Corp. Mr. Stone is the Chief Investment Officer at Perceptive Advisors LLC. Mr. Stone joined the firm in 2006. Prior to this, he was a Senior Analyst at Ursus Capital and focused on biotech and specialty pharmaceuticals for five years. He has been Director of Solid Biosciences Inc. since November 2015. He serves on the board of directors for several of Perceptive’s portfolio companies, including Solid Biosciences, Renovia and Xontogeny. Mr. Stone graduated, with honors, from Princeton University with a B.A. in Molecular Biology.
Insufficient data for Adam to compare compensation growth.
Insufficient data for Adam to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
ARYA Sciences Acquisition Corp. does not have significant operations. It focuses on effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses in the life sciences and medical technology sectors in North America and Europe. The company was founded in 2018 and is based in New York, New York.
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.