Discounted Cash Flow Calculation for CNSX:RAD 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:RAD 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
Radial Research'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 Radial Research 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 Software industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Radial Research's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Radial Research's earnings growth to the Canada market average as no estimate data is available.
Unable to compare Radial Research's revenue growth to the Canada market average as no estimate data is available.
Unable to determine if Radial Research is high growth as no earnings estimate data is available.
Unable to determine if Radial Research 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.
Radial Research'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.
TENURE AS CEO
Mr. Peter Michael Smith, also known as Pete, Co-founded First Source Resources Inc. in 2005 and served as its Chief Executive Officer since October 20, 2005 and also served as its President. Mr. Smith serves as Chief Executive Officer at Radial Research Corp since 2017 and has been its Director since June 26, 2017. He serves as President at Radial Research Corp. since 2017 and serves as its Corporate Secretary. He Co-founded DGM Minerals Corp. in 2010. Mr. Smith has been Chief Executive Officer and President at Legion Metals Corp. since March 31, 2017 and its Director since December 15, 2016. Mr. Smith has been Vice President of Corporate Development at Less Mess Storage Inc since May 2014. He served as the Chief Executive Officer and President of Less Mess Storage Inc. (alternate name DGM Minerals Corp.) September 21, 2010 until May 2014. Mr. Smith served as Vice President of Corporate Affairs at Magnus International Resources Inc., from February 2005 to June 23, 2006. He served as President of Apple Capital Inc. from April 17, 2007 to November 12, 2007. He served as a Consultant of Magnus International Resources Inc. He served as the President of Magnus International Resources Inc. until January 2001. In June 2000, Mr. Smith founded the Wrestle-plex Sports Entertainment Group, Ltd. From January 2004 to March 2004, he was an Associate lawyer at Stikemen Elliott LLP. From September 2002 to September 2003, Mr. Smith was attorney of Debevoise & Plimption in New York City. He is a lawyer with over 10 years' experience. He served as Chairman of Less Mess Storage Inc. He served as the Chairman of First Source Resources Inc. and served as its Director since October 20, 2005. He has been a Director of DGM Minerals Corp. since September 21, 2010. He served as a Director of Palatine Capital Corp. He served as a Director of Apple Capital Inc. from April 17, 2007 to November 9, 2010. He served as a Director of Amicus Capital Corp. He served as a Director of Magnus International Resources Inc., from May 4, 2004 to June 23, 2006. He served as a Director of P&P Ventures Inc. and of Digital Shelf Space Corp (MOVIT Media Corp). From January 2001 to January 2002, he worked as a law clerk at the Supreme Court of Canada for the honorable Justice Louise Arbour. He has also been teaching Criminology and Criminal Law at Simon Fraser University as a sessional instructor since January, 2002. He has been a Member of Advisory Board at Veritas Pharma Inc. since February 10, 2016. Mr. Smith attained a Bachelor of Laws degree from the University of British Columbia in 1999, a Masters degree from Cambridge University in the United Kingdom in 1997 and a Bachelor of Arts degree from Simon Fraser University in December 1995.
Insufficient data for Pete to compare compensation growth.
Pete's remuneration is lower than average for companies of similar size in Canada.
CFO & Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Radial Research board of directors is less than 3 years, this suggests a new board.
Board of Directors
CFO & Director
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Do Institutions Own Radial Research Corp. (CNSX:RAD) Shares?
As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.' Radial Research is not a large company by global standards. … See our latest analysis for Radial Research CNSX:RAD Ownership Summary, August 1st 2019 What Does The Lack Of Institutional Ownership Tell Us About Radial Research? … Insider Ownership Of Radial Research The definition of company insiders can be subjective, and does vary between jurisdictions.
Radial Research Corp. focuses on finding, developing, and implementing Internet and smart phone technology. The company develops online and download technologies and services, including software, web-sites, and smartphone applications. It is developing Movie Method, a smart phone-based language training and translation application that uses traditional language training methods. The company was formerly known as 1124538 B.C. Ltd. and changed its name to Radial Research Corp. in March 2018. Radial Research Corp. was incorporated in 2017 and is based in Vancouver, Canada.
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