LF Capital Acquisition Corp. intends to merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses.
The last earnings update was 39 days ago.
Discounted Cash Flow Calculation for NasdaqCM:LFAC.U using Excess Returns Model Model
The calculations below outline how an intrinsic value for LF Capital 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
LF Capital 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
LF Capital Acquisition's
is considered below, and whether this is a fair price.
Price based on past earnings
LF Capital Acquisition's earnings available for a low price, and how does
this compare to other companies in the same industry?
LF Capital Acquisition's earnings are expected to grow by 18.7% yearly, however this is not considered high growth (20% yearly).
Unable to determine if LF Capital 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.
LF Capital 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.
LF Capital 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
LF Capital Acquisition's finances.
The net worth of a company is the difference between its assets and liabilities.
LF Capital Acquisition's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
LF Capital Acquisition's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
LF Capital 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.
Debt is covered by short term assets, assets are 1.2x 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.
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. Philippe De Backer has been Co-Head of Global Financial Services Practice at Bain & Company Inc. since March 2011. Mr. De Backer has been Chief Executive Officer and Director of LF Capital Acquisition Corp. since October 2017. He served as the Partner of Middle East and Director of Global Financial Services - Middle East of Bain & Company Inc. Mr. De Backer served as a Partner at Bain & Company based in Brussels and Paris, where he also served as the Head of Bain & Company's Benelux and France Financial Services Practice. He is a highly experienced corporate strategist and author of four books on management. Mr. de Backer joined it in 1992 in Boston and Belgium to open the Brussels office. He launched the first Financial Services practice in Europe and led the development of the French Financial services practice that fuels the rapid growth of the French office. Mr. de Backer has established track record of leading successful transformation of major financial institutions in Europe, Asia, Australia and the USA. He relies on extensive experience and expertise in corporate strategy, business unit strategy, growth strategy, operations improvement and organisational structure both banks, financial institutions and insurance groups. Mr. De Backer served as an Independent Non Executive Director of Brederode SA. Mr. De Backer has co-authored four books on management which includes the best-selling business book Maximum Leadership, Go East, Management Audit and most recently Reinvent Retail Banking. He is a frequent keynote speaker at global business conferences and has written a number of articles for publications, including Benelux Results, L'Echo, La Libre Enterprise and American Banker. He is often sought out for his expert commentary and has been quoted in leading media including in The Wall Street Journal Europe, the Financial Times and Reuters. He is a graduate of Colgate University where he received a B.A. in economics with high honors, magna cum laude and was a member of Phi Beta Kappa. He also earned an M.B.A. from the Tuck School at Dartmouth.
Insufficient data for Philippe to compare compensation growth.
Insufficient data for Philippe to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Philippe De Backer
CEO & Director
Board of Directors Tenure
Average tenure and age of the
LF Capital Acquisition
board of directors in years:
The average tenure for the LF Capital Acquisition board of directors is less than 3 years, this suggests a new board.
LF Capital Acquisition Corp. intends to merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company was founded in 2017 and is based in New York, New York.
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