Discounted Cash Flow Calculation for ENXTBR:BELR using Dividend Discount Model Model
The calculations below outline how an intrinsic value for
Belgian Resources and Capital
is arrived at by discounting future dividends to their present value. This
approach is used for finance firms where free cash flow is difficult to estimate
(e.g. Banks/ Insurance firms).
If the firm does not pay the majority of its earnings out as a dividend this
method will often arrive at a value significantly lower than the share price.
The current share price of
Belgian Resources and Capital
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
Belgian Resources and Capital's
is considered below, and whether this is a fair price.
Price based on past earnings
Belgian Resources and Capital'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 Belgian Resources and Capital 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 Real Estate industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Belgian Resources and Capital
expected to grow at an
Unable to compare Belgian Resources and Capital's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Belgian Resources and Capital's earnings growth to the Belgium market average as no estimate data is available.
Unable to compare Belgian Resources and Capital's revenue growth to the Belgium market average as no estimate data is available.
Unable to determine if Belgian Resources and Capital is high growth as no earnings estimate data is available.
Unable to determine if Belgian Resources and Capital 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.
Belgian Resources and Capital'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.
Belgian Resources and Capital
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
Belgian Resources and Capital's finances.
The net worth of a company is the difference between its assets and liabilities.
Belgian Resources and Capital is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Belgian Resources and Capital has no long term commitments.
This treemap shows a more detailed breakdown of
Belgian Resources and Capital'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.
Belgian Resources and Capital 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.
Something To Consider Before Buying Belgian Resources and Capital Company (EBR:BELR) For The 3.1% Dividend
Dividend paying stocks like Belgian Resources and Capital Company (EBR:BELR) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. … Some simple analysis can reduce the risk of holding Belgian Resources and Capital for its dividend, and we'll focus on the most important aspects below. … Belgian Resources and Capital is paying out a dividend despite reporting a loss; clearly a concern.
Here's How P/E Ratios Can Help Us Understand Belgian Resources and Capital Company (EBR:BELR)
To keep it practical, we'll show how Belgian Resources and Capital Company's (EBR:BELR) P/E ratio could help you assess the value on offer. … Based on the last twelve months, Belgian Resources and Capital's P/E ratio is 7.29. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Should You Buy Belgian Resources and Capital Company (EBR:BELR) For Its Dividend?
Historically, Belgian Resources and Capital Company (EBR:BELR) has paid dividends to shareholders, and these days it yields 2.9%. … Does Belgian Resources and Capital tick all the boxes of a great dividend stock? … Check out our latest analysis for Belgian Resources and Capital
Is Belgian Resources and Capital Company (EBR:BELR) A Great Dividend Stock?
Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … Belgian Resources and Capital Company (EBR:BELR) has returned to shareholders over the past 10 years, an average dividend yield of 3.00% annually. … Does Belgian Resources and Capital tick all the boxes of a great dividend stock?
Should You Be Tempted To Buy Belgian Resources and Capital Company (EBR:BELR) Because Of Its PE Ratio?
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for BELR Price per share = €103 Earnings per share = €21.381 ∴ Price-Earnings Ratio = €103 ÷ €21.381 = 4.8x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … BELR’s P/E of 4.8x is lower than its industry peers (12.6x), which implies that each dollar of BELR’s earnings is being undervalued by investors. … For example, if you are inadvertently comparing lower risk firms with BELR, then BELR’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price.
Before You Buy Belgian Resources and Capital Company's (EBR:BELR), Consider This
Generally, an investor should consider two types of risk that impact the market value of BELR. … Based on this beta value, BELR appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market. … BELR, with its market capitalisation of €33.14M, is a small-cap stock, which generally have higher beta than similar companies of larger size.
Belgian Resources and Capital Company (EBR:BELR): Can It Deliver A Superior ROE To The Industry?
See our latest analysis for Belgian Resources and Capital Peeling the layers of ROE – trisecting a company’s profitability Return on Equity (ROE) weighs Belgian Resources and Capital’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Belgian Resources and Capital’s equity capital deployed. … This means Belgian Resources and Capital’s returns actually do not cover its own cost of equity, with a discrepancy of -0.87%.
Belgian Resources and Capital Company primarily invests in listed and unlisted securities in Belgium. The company was formerly known as The Belgian Real Estate Company of Canada Ltd. and changed its name to Belgian Resources and Capital Company in November 2000. Belgian Resources and Capital Company was founded in 1976 and is based in Antwerp, Belgium.
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.