Discounted Cash Flow Calculation for OTCPK:DOTD.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 use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
OTCPK:DOTD.F DCF 1st Stage: Next 5 year cash flow forecast
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
dotDigital Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
dotDigital Group's earnings are expected to grow by 14.2% yearly, however this is not considered high growth (20% yearly).
dotDigital Group's revenue is expected to grow by 17.1% 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.
dotDigital Group'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.
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
dotDigital Group's finances.
The net worth of a company is the difference between its assets and liabilities.
dotDigital Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
dotDigital Group's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
dotDigital Group'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.
Debt is covered by short term assets, assets are 5591.6x debt.
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. Milan Patel, ACCA, ACSI, FCCA, serves as President of dotDigital Group Plc. Mr. Patel has been the Chief Executive Officer of dotDigital Group Plc since July 20, 2016. Mr. Patel served as the Chief Financial Officer of dotDigital Group Plc since 2015 until July 2017 and served as its Company Secretary since 2009. He served as the Interim Chief Executive Officer of dotDigital Group Plc from January 2016 to July 20, 2016 and served as its Financial Controller. Mr. Patel joined dotDigital in 2007. Mr. Patel has over 8 years experience in Accounting and Finance within the Digital Media, Technology and Logistics industry. He has been responsible for the financial and legal aspects of the reverse acquisition of West End Ventures PLC, admission to Plus and the introduction to AIM. He is a responsible for the Group's functions in financial management & reporting, regulatory compliance, legal and corporate governance. He has been an Executive Director of dotDigital Group Plc since March 11, 2014. Mr. Patel holds a B.A (Hons) degree in Accounting and Finance.
Milan's compensation has increased by more than 20% in the past year.
Milan's remuneration is about 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 dotDigital Group management team is about average.
CEO, President & Executive Director
Co-Founder & Executive Director
CFO & Director
Chief Technology Officer
Senior Business Development Manager
Chief Marketing Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the dotDigital Group board of directors is about average.
dotdigital Group Plc provides intuitive software as a service and managed services to digital marketing professionals in the United Kingdom. The company offers dotMailer, an email and cross-channel marketing automation platform that enables marketers to create, send, and automate marketing campaigns. It also provides email marketing consultancy and managed services through integrated, multi-channel engagement, conversion, acquisition, and retention; and Web based marketing services to other businesses. The company was founded in 1999 and is based in London, the United Kingdom.
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