Discounted Cash Flow Calculation for ASX:5GN 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.
Note: Free cash flow to equity valuations ignore the company's cash or debt.
ASX:5GN DCF 1st Stage: Next 10 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
5G Networks'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 5G Networks 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 Telecom industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare 5G Networks's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare 5G Networks's earnings growth to the Australia market average as no estimate data is available.
Unable to compare 5G Networks's revenue growth to the Australia market average as no estimate data is available.
Unable to determine if 5G Networks is high growth as no earnings estimate data is available.
Unable to determine if 5G Networks 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.
5G Networks'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. Joseph Demase, also known as Joe, B.Bus (Accy), serves as Managing Director at 5G Networks Limited. Mr. Demase is a Co-Founder of Clever Communications Australia Limited (Access Providers Ltd) and served as its Chief Operations Officer since April 3, 2007. He also served as Chief Financial Officer of Clever Communications Australia Limited from December 2001 to April 3, 2007 and as its Company Secretary until April 3, 2007. He served as Business Manager of Uecomm Limited for 3 years and also served as an Analyst with a major United Kingdom telecommunications company. He has been shaping businesses for more than 20 years, with more than 15 years spent in the telco sector both in Australia and in the UK. He has succeeded in a broad range of executive functions, from the design and provision of financial systems and services through to the successful development and management of high-tech multi-disciplinary projects. He serves as Director at 5G Networks Limited. He served as Executive Director of Clever Communications Australia Ltd. from November 2004 to November 2007. Mr. Demase holds a Bachelor of Business (Accountancy) degree from Deakin University.
Joe's compensation has increased whilst company is loss making.
Joe's remuneration is higher than average for companies of similar size in Australia.
MD & Director
National Sales Director
CFO & Company Secretary
Chief Technical Manager
Chief Marketing Officer
Board of Directors
MD & Director
Who owns this company?
Recent Insider Trading
5G Networks individual insiders have only sold shares in the past 3 months.
What Kind Of Shareholder Appears On The 5G Networks Limited's (ASX:5GN) Shareholder Register?
A look at the shareholders of 5G Networks Limited (ASX:5GN) can tell us which group is most powerful. … Taking a look at our data on the ownership groups (below), it's seems that. … Let's take a closer look to see what the different types of shareholder can tell us about 5GN
Can We See Significant Insider Ownership On The 5G Networks Limited (ASX:5GN) Share Register?
A look at the shareholders of 5G Networks Limited (ASX:5GN) can tell us which group is most powerful. … So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. … With a market capitalization of AU$19m, 5G Networks is a small cap stock, so it might not be well known by many institutional investors.
What’s Installed For 5G Networks Limited (ASX:5GN)?
Telco analysts are forecasting for the entire industry, negative growth in the upcoming year , and an overall negative growth rate in the next couple of years. … Unsuprisingly, this is below the growth rate of the Australian stock market as a whole. … ASX:5GN PE PEG Gauge Nov 21st 17 The telco industry is trading at a PE ratio of 21x, in-line with the Australian stock market PE of 17x.
Should You Be Tempted To Sell 5G Networks Limited (ASX:5GN) Because Of Its PE Ratio?
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for 5GN Price per share = 0.25 Earnings per share = 0.004 ∴ Price-Earnings Ratio = 0.25 ÷ 0.004 = 70.6x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … 5GN’s P/E of 70.6x is higher than its industry peers (18.5x), which implies that each dollar of 5GN’s earnings is being overvalued by investors. … For example, if you are inadvertently comparing riskier firms with 5GN, then 5GN’s P/E would naturally be higher than its peers since investors would reward its lower risk with a higher price.
5G Networks Limited operates as a licensed telecommunications carrier in Australia. The company offers data connectivity, cloud and data center, and managed services. It provides cloud-based solutions and network services; and operates fiber and wireless infrastructure, cloud computing environment, and data center. The company was incorporated in 2013 and is headquartered in Melbourne, Australia.
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.