Leo Holdings Corp. intends to acquire assets and businesses through a merger, capital stock exchange, stock purchase, reorganization, or business combination.
The last earnings update was 10 days ago.
Discounted Cash Flow Calculation for NYSE:LHC using Excess Returns Model Model
The calculations below outline how an intrinsic value for Leo Holdings 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
Leo Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
Leo Holdings's earnings are expected to grow by 12.3% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Leo Holdings 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.
Leo Holdings'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
1/6, 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.
Mr. Lyndon Lea is Chairman and Chief Executive Officer of Leo Holdings Corp. Mr. Lea is Founding Partner and member of the Investment Committee of Lion Capital and serves as its Managing Partner. Mr. Lea Previously, served as a Partner at the firm. Mr. Lea is responsible for the management of Lion Capital LLP. Prior to co-founding Lion Capital LLP in 2004, he was a Partner at Hicks, Muse, Tate & Furst, where he co-founded its European operations in 1998 after he left Glenisla. He led Hicks Muse's European operations from 2000 to 2004. He was a Partner of HM Capital Partners LLC. Prior to joining Hicks Muse, he served at Glenisla along with Richardson from 1993 to 1998. Prior to that, he served as an Investment Banker at Schroders plc and Goldman Sachs. From 1999 to 2004, he led a number of the investments that were part of the Hicks Muse Europe Fund, achieving over this period an excellent record of investment performance. He serves as a Member of the Board of Directors of Authentic Brands Group, AllSaints, Bumble Bee Foods, LLC, Buscemi, John Varvatos, Perricone MD and Spence Diamonds. He serves as a Director of Aber Diamond Corp., and various Cayman limited companies. He serves as a Director of NFS. He served as a Director of Vaasan Oy and American Apparel, Inc. since January 13, 2015. He served as a Director of Premier Foods plc until May 26, 2005 and Yell Finance BV from July 1, 2003 to October 31, 2008. He served as an Independent Non-Executive Director at Hibu Plc from July 1, 2003 to October 31, 2008. He served as a Director of Dominion Diamond Corporation from December 3, 2004 to October 31, 2008 and American Apparel, Inc. from May 12, 2010 to March 30, 2011. He served as a Non Executive Director at ARYZTA AG until October 31, 2008. He served as a Director of Yell Group plc. Mr. Lea received a B.A. degree from the University of Western Ontario, Canada.
Insufficient data for Lyndon to compare compensation growth.
Insufficient data for Lyndon to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Leo Holdings Corp. intends to acquire assets and businesses through a merger, capital stock exchange, stock purchase, reorganization, or business combination. The company was founded in 2017 and is based in London, the United Kingdom.
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