Discounted Cash Flow Calculation for CNSX:PLUS 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.
CNSX:PLUS 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.
Plus Products's share price is below the future cash flow value, and at a moderate discount (> 20%).
Plus Products'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
Plus Products's earnings available for a low price, and how does
this compare to other companies in the same industry?
Plus Products's earnings are expected to grow significantly at over 20% yearly.
Plus Products'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.
Plus Products'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. Jacob F. Heimark, also known as Jake, serves as Chief Executive Officer and Director at Plus Products Holdings Inc. Mr. Heimark serves as Co-Founder and Chief Executive Officer at Plus Products Inc and serves as its Director since July 24, 2018.
Insufficient data for Jake to compare compensation growth.
Jake's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Plus Products management team is less than 2 years, this suggests a new team.
Chief Risk Officer
Chief Financial Officer
Director of Investor Relations
Chief Revenue Officer
Board of Directors Tenure
Average tenure of the
board of directors in years:
The average tenure for the Plus Products board of directors is less than 3 years, this suggests a new board.
Board of Directors
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Why Plus Products Inc. (CNSX:PLUS) Could Be Your Next Investment
If you're interested in understanding beyond my broad commentary, take a look at the report on Plus Products here. … This indicates that PLUS has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. … CNSX:PLUS Past and Future Earnings, July 3rd 2019 Next Steps: For Plus Products, I've put together three important factors you should further examine: Historical Performance: What has PLUS's returns been like over the past?
Can We See Significant Insider Ownership On The Plus Products Inc. (CNSX:PLUS) Share Register?
Plus Products is a smaller company with a market capitalization of CA$110m, so it may still be flying under the radar of many institutional investors. … See our latest analysis for Plus Products CNSX:PLUS Ownership Summary, May 30th 2019 What Does The Lack Of Institutional Ownership Tell Us About Plus Products? … Insider Ownership Of Plus Products While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.
Plus Products Inc. manufactures cannabis products in California. The company offers cannabis-infused edibles to the regulated medicinal and adult-use, or recreational markets. It sells products under the PLUS brand to dispensaries and delivery service customers. The company was incorporated in 2018 and is headquartered in Vancouver, Canada.
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