Discounted Cash Flow Calculation for NYSE:ELVT using Excess Returns Model Model
The calculations below outline how an intrinsic value for Elevate Credit 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.
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.
Elevate Credit's share price is below the future cash flow value, and at a moderate discount (> 20%).
Elevate Credit'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
Elevate Credit's earnings available for a low price, and how does
this compare to other companies in the same industry?
Elevate Credit's earnings are expected to grow significantly at over 20% yearly.
Elevate Credit's revenue is expected to grow by 8.3% 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.
Elevate Credit'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
5/6, 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. Kenneth Earl Rees, also known as Ken, serves as Chief Executive Officer and Chairman of the Board of Directors of Elevate Credit, Inc. since 2014. Prior to this, he was the founder and CEO of CashWorks, Inc. Earlier in his career, he ran CSC Index’s West Coast financial services consulting practice. He holds a BA in Mathematics from Reed College and earned his MBA in Finance and Statistics from the University of Chicago. In 2012, he was selected by Ernst & Young as an Entrepreneur of the Year and was named a 2017 Innovator to Watch by Bank Innovation.
Ken's compensation has been consistent with company performance over the past year.
Ken's remuneration is higher than average for 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 Elevate Credit management team is about average.
Chairman & CEO
Chief Financial Officer
COO, Treasurer & Company Secretary
Chief Accounting Officer & Senior VP of Finance
Chief Information Officer
Senior Communications Manager
Executive VP & Chief Human Resources Officer
Eric Von Dohlen
Chief Analytics Officer
Chief Credit Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Elevate Credit board of directors is about average.
Do Directors Own Elevate Credit, Inc. (NYSE:ELVT) Shares?
If you want to know who really controls Elevate Credit, Inc. … With a market capitalization of US$206m, Elevate Credit is a small cap stock, so it might not be well known by many institutional investors. … institutional investors have bought into the company
Those Who Purchased Elevate Credit (NYSE:ELVT) Shares A Year Ago Have A 39% Loss To Show For It
One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Elevate Credit managed to increase earnings per share from a loss to a profit, over the last 12 months. … Earnings per share growth rates aren't particularly useful for comparing with the share price, when a company has moved from loss to profit.
Do Insiders Own Shares In Elevate Credit, Inc. (NYSE:ELVT)?
Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … With a market capitalization of US$201m, Elevate Credit is a small cap stock, so it might not be well known by many institutional investors. … View our latest analysis for Elevate Credit
Is Elevate Credit Inc (NYSE:ELVT) Worth US$4.40 Based On Intrinsic Value?
Pricing ELVT, a financial stock, can be difficult since consumer finance businesses have cash flows that are affected by regulations that are not imposed upon other sectors. … These lenders, for example, must hold certain levels of capital in order to maintain a safe cash cushion.
Is June The Month To Buy Elevate Credit Inc (NYSE:ELVT)?
Elevate Credit Inc (NYSE:ELVT) is considered a high growth stock. … However its last closing price of $8.14 left investors wondering whether this growth has already been factored into the share price. … Elevate Credit is poised for significantly high earnings growth in the near future
BOBE’s projected future profit growth is an exceptional triple-digit, with an underlying 28.70% growth from its revenues expected over the upcoming years. … Though some cost-cutting activities may artificially inflate margins, it appears that this isn’t solely the case here, as profit growth is also coupled with high top-line expansion. … NYSE:QSR Future Profit Nov 2nd 17 For more financially robust companies with high growth potential to enhance your portfolio, use our free platform to explore our interactive list of these stocks.
Elevate Credit, Inc. provides online credit solutions to non-prime consumers in the United States and the United Kingdom. The company offers unsecured online installment loans, lines of credit, and credit cards. Its products include Rise installment loan and line of credit products; Elastic, a line of credit product; Sunny, an installment loan product; and Today Card, a credit card product. The company was incorporated in 2014 and is headquartered in Fort Worth, Texas.
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