Discounted Cash Flow Calculation for ARCA:EWD using Excess Returns Model Model
The calculations below outline how an intrinsic value for iShares - iShares MSCI Sweden ETF 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
iShares - iShares MSCI Sweden ETF
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
iShares - iShares MSCI Sweden ETF's
is considered below, and whether this is a fair price.
Price based on past earnings
iShares - iShares MSCI Sweden ETF's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as iShares - iShares MSCI Sweden ETF has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Capital Markets industry annual growth in earnings.
Earnings growth vs Low Risk Savings
iShares - iShares MSCI Sweden ETF
expected to grow at an
Unable to compare iShares - iShares MSCI Sweden ETF's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare iShares - iShares MSCI Sweden ETF's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare iShares - iShares MSCI Sweden ETF's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if iShares - iShares MSCI Sweden ETF is high growth as no earnings estimate data is available.
Unable to determine if iShares - iShares MSCI Sweden ETF 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.
iShares - iShares MSCI Sweden ETF'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.
iShares - iShares MSCI Sweden ETF
has a total score of
0/6, 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
iShares - iShares MSCI Sweden ETF's finances.
The net worth of a company is the difference between its assets and liabilities.
iShares - iShares MSCI Sweden ETF is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
iShares - iShares MSCI Sweden ETF has no long term commitments.
This treemap shows a more detailed breakdown of
iShares - iShares MSCI Sweden ETF'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.
iShares - iShares MSCI Sweden ETF 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.
iShares, Inc. - iShares MSCI Sweden ETF is an exchange traded fund launched by BlackRock, Inc. The fund is managed by BlackRock Fund Advisors. The fund invests in public equity markets of Sweden. The fund invests in stocks of companies operating across diversified sectors. It invests in growth and value stocks of companies across diversified market capitalization. The fund seeks to track the performance of the MSCI Sweden 25/50 Index, by using representative sampling technique. iShares, Inc. - iShares MSCI Sweden ETF was formed on March 12, 1996 and is domiciled in the United States.
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.