Discounted Cash Flow Calculation for OTCPK:BISA using Excess Returns Model Model
The calculations below outline how an intrinsic value for Baltic International USA 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
Baltic International USA
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
Baltic International USA
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Baltic International USA's share price is below the future cash flow value, and at a moderate discount (> 20%).
Baltic International USA's share price is below the future cash flow value, and 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
Baltic International USA's
is considered below, and whether this is a fair price.
Price based on past earnings
Baltic International USA'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 Baltic International USA 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
Baltic International USA
expected to grow at an
Unable to compare Baltic International USA's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Baltic International USA's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare Baltic International USA's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if Baltic International USA is high growth as no earnings estimate data is available.
Unable to determine if Baltic International USA 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.
While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Baltic International USA's filings and announcements here.
Baltic International USA'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.
Baltic International USA
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
Baltic International USA's finances.
The net worth of a company is the difference between its assets and liabilities.
Baltic International USA's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Baltic International USA has no long term commitments.
This treemap shows a more detailed breakdown of
Baltic International USA'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.
Baltic International USA has negative shareholder equity (liabilities exceed assets) therefore debt is not 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. David A. Grossman, CPA, has been the Chief Executive Officer of Baltic International USA Inc. since 2010 and as its Chief Financial Officer since September 1997 and as Corporate Secretary since December 1996. Mr. Grossman also served as the Chief Accounting Officer of Baltic International USA Inc. and served as its Interim Chief Executive Officer since February 26, 2010. From February 2003 to January 2005, Mr. Grossman served as operations controller of BHP Billiton. He was an audit partner of Malone & Bailey, PC from 2005 to 2007. Mr. Grossman is an audit partner with GBH CPAs, PC. Mr. Grossman served as President of Baltic International USA Inc., from November 1998 to May 2000 and its comptroller from November 1995 until September 1997. Mr. Grossman served as Chief Financial Officer of LynkTel, Inc. from May 2000 to January 2003. He served as the Chief Financial Officer of Quality Resource Technologies Inc. He served as an audit senior manager for Deloitte & Touche LLP. Mr. Grossman serves as a Director of Baltic International USA Inc. Mr. Grossman is a Certified Public Accountant from AICPA and earned a BS degree in accounting from Indiana University in 1985.
Insufficient data for David to compare compensation growth.
David's remuneration is lower than average for companies of similar size in United States of America.
Baltic International USA, Inc. does not have significant operations. It intends to investigate and acquire a target company or business seeking to become a publicly held corporation. The company was founded in 1991 and is based in Houston, Texas.
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.