Discounted Cash Flow Calculation for SNSE:MOLYMET using Dividend Discount Model Model
The calculations below outline how an intrinsic value for
Molibdenos y Metales
is arrived at by discounting future dividends to their present value. This
approach is used for finance firms where free cash flow is difficult to estimate
(e.g. Banks/ Insurance firms).
If the firm does not pay the majority of its earnings out as a dividend this
method will often arrive at a value significantly lower than the share price.
The current share price of
Molibdenos y Metales
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
Molibdenos y Metales's
is considered below, and whether this is a fair price.
Price based on past earnings
Molibdenos y Metales'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 Molibdenos y Metales 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 Metals and Mining industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Molibdenos y Metales
expected to grow at an
Unable to compare Molibdenos y Metales's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Molibdenos y Metales's earnings growth to the Chile market average as no estimate data is available.
Unable to compare Molibdenos y Metales's revenue growth to the Chile market average as no estimate data is available.
Unable to determine if Molibdenos y Metales is high growth as no earnings estimate data is available.
Unable to determine if Molibdenos y Metales 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.
Molibdenos y Metales'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
Metals and Mining
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.
Molibdenos y Metales
has a total score of
2/6, 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
Molibdenos y Metales's finances.
The net worth of a company is the difference between its assets and liabilities.
Molibdenos y Metales is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Molibdenos y Metales's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Molibdenos y Metales'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.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 2.7x debt.
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.
Molibdenos y Metales S.A. produces and sells molybdenum oxide, ferromolybdenum, and by-products in Chile and internationally. It provides technical grade ferromolybdenum and molybdenum oxide in the form of powder and briquettes, as well as ferromolybdenum products for use in construction, automobile, energy, mining and industrial plants, and other industries. The company also offers molybdenum ammoniacal salts and soluble technical grade oxides; technical molybdic oxide; and rhenium-based products, such as ammonium perrhenate and perrhenic acid, and ammonium dimolybdate and heptamolybdate that are used in the chemical industries. In addition, it provides pure molybdenum oxide and metallic molybdenum in the form of powder, bricks, and special pieces; and rhenium-based products, such as metallic rhenium powder or briquettes, which are used in the metallic/superalloys industries. The company’s molybdenum products are also used in the aerospace and automobile industries, and for surgical tools, as well as for manufacturing light bulbs and LCD screens, water treatment, and applying laser beams. The company was founded in 1975 and is based in San Bernardo, Chile.
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