Mudrick Capital Acquisition Corporation intends to identify, source, negotiate, and execute a business through a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination.
The last earnings update was 12 days ago.
Discounted Cash Flow Calculation for NasdaqCM:MUDS using Excess Returns Model Model
The calculations below outline how an intrinsic value for Mudrick 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
Mudrick 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
Mudrick Capital Acquisition's
is considered below, and whether this is a fair price.
Price based on past earnings
Mudrick Capital Acquisition's earnings available for a low price, and how does
this compare to other companies in the same industry?
Mudrick Capital Acquisition's earnings are expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Mudrick 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.
Mudrick 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.
Mudrick 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
Mudrick Capital Acquisition's finances.
The net worth of a company is the difference between its assets and liabilities.
Mudrick Capital Acquisition's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Mudrick Capital Acquisition's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Mudrick 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.
Mudrick Capital 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.
TENURE AS CEO
Mr. Jason Ben Mudrick is the President and Chief Investment Officer at Mudrick Capital Management, LP. Mr. Mudrick founded the firm in 2009. He has been Chief Executive Officer and Director of Mudrick Capital Acquisition Corp. since September 2017. Mr. Mudrick served as Managing Director and Portfolio Manager at Contrarian Capital Management, LLC until October 2008. Mr. Mudrick joined Contrarian Capital in late 2001, where he began his focus on distressed investing. Beginning in October 2002, Mr. Mudrick served as Managing Director and Portfolio Manager of the Contrarian Equity Fund, a fund specializing in post-restructured equities, which he managed until his departure at the end of 2008. Mr. Mudrick specialized in investing in post-restructured equities, among other things. Mr. Mudrick began his Wall Street career in 2000 advising on mergers and acquisition transactions as an Associate in Merrill Lynch’s Mergers & Acquisitions Investment Banking Group. He serves as Chairman at Dex Media, Inc. He served as Director of Russell Hobbs, Inc. (also known as Salton Inc.) since October 23, 2006. Mr. Mudrick served as a Director of Rotech Healthcare Inc. from April 17, 2007 to November 14, 2007. He served as Director of Safety-Kleen Systems, Inc., NJOY Holdings and Corporate Risk Holdings. He served as Director of Integrated Alarm Services Group Inc., since June 2006 and Safety-Kleen HoldCo., Inc. since December 12, 2005. He was also the recipient of the 2010 Rising Stars of Hedge Funds awarded by Institutional Investor. Mr. Mudrick was admitted to the New York State Bar. Mr. Mudrick spent two years in graduate school teaching economics classes to Harvard University undergraduates. He holds a B.A. in Political Science from the College of the University of Chicago and a J.D. from Harvard Law School. Jason was admitted to the New York State Bar.
Insufficient data for Jason to compare compensation growth.
Insufficient data for Jason to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure
Average tenure of the
Mudrick Capital Acquisition
management team in years:
The average tenure for the Mudrick Capital Acquisition management team is less than 2 years, this suggests a new team.
CEO & Director
Chief Financial Officer
VP & Director
Board of Directors Tenure
Average tenure and age of the
Mudrick Capital Acquisition
board of directors in years:
The average tenure for the Mudrick Capital Acquisition board of directors is less than 3 years, this suggests a new board.
Mudrick Capital Acquisition Corporation intends to identify, source, negotiate, and execute a business through a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination. The company was founded in 2017 and is based in New York, New York.
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