Discounted Cash Flow Calculation for OTCPK:COLX.F using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
OTCPK:COLX.F DCF 1st Stage: Next 10 year cash flow forecast
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.
Columbia Care's share price is below the future cash flow value, and at a moderate discount (> 20%).
Columbia Care'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
is considered below, and whether this is a fair price.
Price based on past earnings
Columbia Care's earnings available for a low price, and how does
this compare to other companies in the same industry?
Unable to determine if Columbia Care is high growth as no earnings estimate data is available.
Columbia Care's revenue is expected to grow significantly at over 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.
Columbia Care'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
0/6, 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. Nicholas Vita serves as Vice Chairman and Chief Executive Officer at Columbia Care LLC. Mr. Vita began his career as a strategic advisor at S.G. Warburg and then as a member of the Healthcare Investment Banking Department at Goldman Sachs. He has more than 20 years’ experience as an executive and an entrepreneur in finance and healthcare.
Insufficient data for Nicholas to compare compensation growth.
Insufficient data for Nicholas 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
management team in years:
The average tenure for the Columbia Care management team is less than 2 years, this suggests a new team.
Vice Chairman & CEO
Chief Financial Officer
Chief Operating Officer
Chief Scientific Officer
Chief Risk Officer & General Counsel
Chief Marketing Officer
Chief Human Capital Officer
Chief Data Officer
Board of Directors
Vice Chairman & CEO
Who owns this company?
Recent Insider Trading
More shares have been bought than sold by Columbia Care individual insiders in the past 3 months.
Columbia Care Inc. develops, manufactures, and markets medical marijuana products. The company also operates medical marijuana dispensaries in the United States. Its products include cannabinoid capsules and medical marijuana tablets. It sells its products through dispensaries and via online. Columbia Care Inc. was incorporated in 2013 and is based in New York, New York with additional locations in Illinois, Delaware, California, and Maryland.
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.