Discounted Cash Flow Calculation for SNSE:BINT using Excess Returns Model Model
The calculations below outline how an intrinsic value for Banco Internacional 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
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
Banco Internacional'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 Banco Internacional 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
expected to grow at an
Unable to compare Banco Internacional's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Banco Internacional's earnings growth to the Chile market average as no estimate data is available.
Unable to compare Banco Internacional's revenue growth to the Chile market average as no estimate data is available.
Unable to determine if Banco Internacional is high growth as no earnings estimate data is available.
Unable to determine if Banco Internacional 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.
All data from Banco Internacional Company Filings, last reported 1 month ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
SNSE:BINT Past Financials Data
Date (Data in CLP Millions)
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
Unable to establish if Banco Internacional will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Examine whether Banco Internacional is trading at Banco Internacional'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
Banco Internacional'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
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Fundamentally a bank's business is based upon borrowing and lending money, for
this reason they typically have high levels of debt and we analyse them
This treemap shows a more detailed breakdown of
Banco Internacional'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.
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.
TENURE AS CEO
Mr. Mario Chamorro Carrizo has been General Manager of Banco Internacional S.A. since November 21, 2015 and Tanner Servicios Financieros S.A. since February 2014. Mr. Carrizo served as the Chief Executive Officer of Corpbanca Sa. from May 30, 2006 to December 30, 2011. From 2003 to 2006, Mr. Chamorro served as the Chief Executive Officer of CorpBanca S.A. former affiliate, CorpBanca Venezuela and later served as Chairman of the Board of Directors of CorpBanca Venezuela. From 2001 to 2003 he served as the Chief Executive Officer of CorpBanca in Chile and from 1999 to 2001 he served as its Chief Operating Officer. From 1996 to 1999 he served as the Chief Financial Officer of Corp. Group and he held a similar position at Banco Osorno. Mr. Chamorro received a B.A. in Business and Administration from the Universidad de Chile. He received Master’s degree in Business Administration from the University of California in Los Angeles, a Masters in Economics from Universidad de Chile and Pontificia Universidad Católica de Chile. He holds Bachelor’s degree in Commercial Engineering from Pontificia Universidad Católica de Chile.
Insufficient data for Mario to compare compensation growth.
Insufficient data for Mario to establish whether their remuneration is reasonable compared to companies of similar size in .
Mario Chamorro Carrizo
Javier P. Barrenechea
Finance Division Manager
Operations Division Manager
Marcelo Araya Jara
Deputy Accounting Manager
Technology & Systems Division Manager
Marco Antonio Bravo
Compliance Division Manager
Manager of legal Division
Natalia Madrid Solari
Human Resources Division Manager
Head of International Business
Marta Sabina Cea Novoa
Board of Directors Tenure
Average tenure of the
board of directors in years:
The tenure for the Banco Internacional board of directors is about average.
Board of Directors
Chairman of the Board
Andrés Solari Urquieta
Vice Chairman of the Board
Juan Antonio Minassian Baloian
Fernando Lefort Gorchs
Andrés Navarro Betteley
Carlos Brito Claissac
Pablo Ihnen De La Fuente
Francisco Vial Bezanilla
Sebastián Claro Edwards
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Banco Internacional S.A. provides various banking products and services in Chile. Its products and services include current accounts; mortgage credit; consumer credit; debit and credit cards; investment products and services; insurance services; state and other guarantees; foreign trade; leasing; factoring; cash management; and electronic payment and online banking services. The company was formerly known as Banco Israelita de Chile and changed its name to Banco Internacional S.A. in July 1981. Banco Internacional S.A. was founded in 1944 and is based in Santiago, Chile. Banco Internacional S.A. is a subsidiary of Inversiones La Construcción S.A.
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