Discounted Cash Flow Calculation for CNSX:WLLW 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:WLLW 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.
Willow Biosciences's share price is below the future cash flow value, and at a moderate discount (> 20%).
Willow Biosciences'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
Willow Biosciences's earnings available for a low price, and how does
this compare to other companies in the same industry?
Unable to determine if Willow Biosciences is high growth as no earnings estimate data is available.
Willow Biosciences'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.
Willow Biosciences'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.
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
Willow Biosciences's finances.
The net worth of a company is the difference between its assets and liabilities.
Willow Biosciences is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Willow Biosciences's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Willow Biosciences'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.
Willow Biosciences 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.
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. Trevor Anthony Peters serves as President and Chief Executive Officer and Director at Willow Biosciences Inc. He is President, Chief Executive Officer and a director of BioCan. He serves as Director at Gegs Capital Corp. since April 25, 2018. Mr. Peters serves as President and Chief Executive Officer of Torenco Energy Inc., a company focused on business development in upstream oil and gas. Mr. Peters has been the Chief Financial Officer of Caracal Energy Inc. (formerly Griffiths Energy International Inc.) since July 1, 2011. He co-founded Waseca Energy Inc and served as its and Vice President of Business Development. He serves as Director, Chief Financial Officer and Corporate Secretary at Global Investments Capital Corp. Mr. Peters has been Director at Octant Energy Corp. since March 8, 2017. He served as Vice President of Corporate Planning & Business Development at Orion Oil & Gas Corporation of Sprott Resource Corp. since January 1, 2008. He served as Vice President of Business Development for Orion Oil& Gas Corporation. He served as Manager of Corporate Planning at North American Oil Sands. After its sale, he served as the President of his own consulting firm, Tritonia Holdings Ltd from July 2007 to October 2009. Mr. Peters served as a Director of Capita Markets - North at American Oil Sands Corporation from January 2006 to June 2007. He was a Senior Analyst at TSC Company Ltd. from September 2004 to December 2005. Mr. Peters holds Bachelor of Mathematics (Honours) from the University of Waterloo.
Insufficient data for Trevor to compare compensation growth.
Insufficient data for Trevor to establish whether their remuneration is reasonable compared to companies of similar size in Canada.
Chief Financial Officer
Vice President of Operations
Chief Scientific Officer
Vice President of Corporate Development
Board of Directors
Who owns this company?
Recent Insider Trading
More shares have been bought than sold by Willow Biosciences individual insiders in the past 3 months.
Did Willow Biosciences Inc. (CNSX:WLLW) Insiders Buy Up More Shares?
So we'll take a look at whether insiders have been buying or selling shares in Willow Biosciences Inc. … For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' See our latest analysis for Willow Biosciences Willow Biosciences Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider purchase was by Director Sadiq Lalani for CA$245k worth of shares, at about CA$0.035 per share. … Insider Ownership of Willow Biosciences I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders.
Willow Biosciences Inc. engages in the biosynthetic production of plant-derived compounds. The company, through its integrated suite of technologies, developing manufacturing processes for various active pharmaceutical ingredients with various therapeutic benefits, including cancer treatment, pain management, and CNS disorders. It also owns proprietary yeast-based lab strains in the cannabinoid field that produce CBD, tetrahydrocannabinol, and cannabigerol, as well as cannabinoids. The company was founded in 2019 and is headquartered in Calgary, Canada.
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