Discounted Cash Flow Calculation for SNSE:BSANTANDER using Excess Returns Model Model
The calculations below outline how an intrinsic value for Banco Santander-Chile 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 Santander-Chile's earnings available for a low price, and how does
this compare to other companies in the same industry?
Banco Santander-Chile's earnings are expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).
Banco Santander-Chile's revenue is expected to grow by 12.5% 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.
Banco Santander-Chile'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 Santander-Chile'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. Miguel Mata Huerta has been the Chief Executive Officer of Banco Santander-Chile since March 1, 2018, and serves as its General Manager. Mr. Huerta served as Deputy General Manager at Banco Santander-Chile since April 2016 until March 1, 2018. Mr. Huerta served as the Chief Financial Officer of Banco Santander-Chile since November 1, 2011 until April 2016. Mr. Huerta served as the Management Information System Director of Banco Santander (known as Santiago). His division developed information systems that deliver to all the business units of Banco Santander the information necessary to make their daily decisions, including spreads, costs, efficiency and profitability. His responsibilities also included supervising the accounting department, preparing the financial statements and reporting to the Board of Directors, the shareholders and the Chilean and U.S. banking authorities. Since joining the Banco Santander in 1990, he has held several positions at Santiago and O'Higgins. He serves as a Director of Santander Chile Holding S.A. Mr. Huerta holds a degree in Industrial Civil Engineering from the Universidad Catlica de Chile.
Insufficient data for Miguel to compare compensation growth.
Insufficient data for Miguel to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure
Average tenure of the
management team in years:
The tenure for the Banco Santander-Chile management team is about average.
Claudio Melandri Hinojosa
Miguel Mata Huerta
CEO & GM
Chief Financial Officer
Director of Technology & Operations
Felipe Contreras Fajardo
Chief Accounting officer
Sergio Ávila Salas
Director of Administration & Costs
Robert Moreno Heimlich
Manager of Investor Relations
Corporate Communications & Sustainability Manager
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Banco Santander-Chile board of directors is less than 3 years, this suggests a new board.
Board of Directors
Orlando Poblete Iturrate
Second Vice President of the Board
Claudio Melandri Hinojosa
Félix de Vicente Mingo
Rodrigo Vergara Montes
First Vice President of the Board
Oscar von Chrismar Carvajal
Alfonso Gómez Morales
Juan Pedro Santa Maria Perez
Corporate Legal Director of the Group & Director
Lucía Santa Cruz Sutil
Ana Dorrego de Carlos
Rodrigo Echenique Gordillo
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Banco Santander-Chile provides commercial and retail banking products and services in Chile. It operates through Retail Banking, Middle-Market, and Global Corporate Banking segments. The company offers checking accounts and savings products; consumer, auto, commercial, mortgage, and government-guaranteed loans; credit and debit cards; and Chilean peso and foreign currency denominated loans to finance various commercial transactions, trade, foreign currency forward contracts, and credit lines. It also provides mutual funds, insurance and stock brokerage, foreign exchange, leasing, factoring, financial consulting, investment management, foreign trade and mortgage financing, treasury, and transactional services, as well as specialized services to finance projects for the real estate industry. In addition, the company offers short-term financing and fund raising, brokerage services, derivatives, securitization, and other tailor-made products. It serves individuals, small to middle-sized entities, companies, and large corporations, as well as universities, government entities, and local and regional governments. The company operates 380 branches, which include 266 under the Santander brand name, 46 under the Select brand name, 7 specialized branches for the middle market, and 21 as auxiliary and payment centers, as well as 910 ATMs. Banco Santander-Chile was founded in 1977 and is headquartered in Santiago, Chile.
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