Forbo Holding AG produces and sells floor coverings, building and construction adhesives, and power transmission and conveyor belt solutions in Switzerland and internationally.
The last earnings update was 208 days ago.
Discounted Cash Flow Calculation for SWX:FORNE 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.
SWX:FORNE 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.
Forbo Holding's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Forbo Holding's share price is below the future cash flow value, but not 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
Forbo Holding's earnings available for a low price, and how does
this compare to other companies in the same industry?
Forbo Holding's earnings are expected to grow by 2% yearly, however this is not considered high growth (20% yearly).
Forbo Holding's revenue is expected to grow by 1.3% yearly, however this is not considered high growth (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.
Forbo Holding'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
5/6, 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. Stephan Bauer has been the Chief Executive Officer of Forbo International SA since January 2014 and serves as its Member of Executive Board. Mr. Bauer has been Chairman of the Executive Board and Chief Executive Officer of Forbo Holding AG since January 1, 2014 and serves as its Member of Executive Board. Mr. Bauer joined Forbo Holding AG in September 2013. From 2008 to 2013, Mr. Bauer served as the Chief Executive Officer and President of Control Products & Systems at the Siemens Building Technologies Division, where he was responsible for the entire product spectrum. Mr. Bauer began his professional career at BMW in Munich in 1987 as a Project Manager for the launch of new vehicle models. From 1991 to 2008, he worked for Siemens VDO Automotive AG (which became Continental Automotive in 2007) in various regional and global management positions in the field of sales, marketing and general management. He was appointed as Chief Executive Officer of Diesel Systems from 2004 to 2008. He served as Chief Operating Officer and Executive Vice President of Gasoline Systems from 2002 to 2004; General Manager and Vice President of Gasoline Systems from 1998 to 2002; Director Sales & Marketing of Engine Systems from 1995 to 1998; Director of Sales & Marketing of Powertrain Systems North America from 1992 to 1995 and Director Sales & Marketing Chassis Control Systems from 1991 to 1992. He took a degree in Engineering and Management at the University of Applied Sciences in Munich (FH).
Insufficient data for Stephan to compare compensation growth.
Stephan's remuneration is about average for companies of similar size in Switzerland.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Forbo Holding management team is about average.
Chairman of the Executive Board & CEO
CFO & Member of Executive Board
Executive VP of Flooring Systems & Member of Executive Board
Executive VP of Movement Systems & Member of Executive Board
Head of Corporate Development & Investor Relations
Head of Corporate Communications
Secretary of the Board
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Forbo Holding board of directors is about average.
Board of Directors
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Forbo Holding AG produces and sells floor coverings, building and construction adhesives, and power transmission and conveyor belt solutions in Switzerland and internationally. The company operates through two divisions, Flooring Systems and Movement Systems. The Flooring Systems division develops, produces, and sells linoleum, vinyl floorings, entrance flooring systems, carpet tiles, needle felt floor coverings, washable textile floorings, and building and construction adhesives, as well as various accessory products for laying, processing, cleaning, and care of flooring. This division also provides ready-made adhesives for floor covering installations, parquet flooring, and ceramic tiles, as well as leveling compounds for the construction industry under the trade name of Eurocol. Its products are used in public buildings, department stores, hospitals and other healthcare facilities, schools, libraries, commercial and office spaces, leisure centers, shops, hotels, restaurants, and cafeterias; and for applications in the residential market. The Movement Systems division offers conveyor and processing belts, synthetic modular belts, and power transmission belts, as well as timing and flat belts under the Siegling brand name. Its products are used in various applications in industry, trade, and the service sector, including conveyor and processing belts in the food industry; treadmill belts in fitness studios; and flat belts in mail distribution centers. The company was founded in 1928 and is headquartered in Baar, Switzerland.
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.