Discounted Cash Flow Calculation for BUL:5CP using Excess Returns Model Model
The calculations below outline how an intrinsic value for Texim Bank AD 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.
The current share price of
Texim Bank AD
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
Texim Bank AD's
is considered below, and whether this is a fair price.
Price based on past earnings
Texim Bank AD'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 Texim Bank AD 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 Banks industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Texim Bank AD
expected to grow at an
Unable to compare Texim Bank AD's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Texim Bank AD's earnings growth to the market average as no estimate data is available.
Unable to compare Texim Bank AD's revenue growth to the market average as no estimate data is available.
Unable to determine if Texim Bank AD is high growth as no earnings estimate data is available.
Unable to determine if Texim Bank AD 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.
Texim Bank AD'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.
Texim Bank AD
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.
Texim Bank AD provides various banking products and services to individuals and legal entities in Bulgaria. It offers special and current, fund raising, escrow, and saving accounts; term deposits; and loans, such as debt consolidation, personal, cash collateral, overdraft, annuity, working capital, investment, documentary collection, and agricultural loans, as well as letters of credit, bank guarantees, business development funds, discount credit, and loan products in exchange for warehouse warrants. The company also provides credit and debit cards; payment, financial market, periodic bill payment, and SMS notification services; and transactions with securities. In addition, it offers private banking and financial consultancy services to wealthy individuals and families, including asset management, money management, legal and tax consulting, real estate consulting/project development, inheritance planning, retirement planning, and insurance services; and investment banking services, such as corporate finances, mergers and acquisitions, researches, consultations, commerce, trustee services, and fiduciary services, as well as asset management services and mutual funds. The company was founded in 1992 and is headquartered in Sofia, Bulgaria.
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