Discounted Cash Flow Calculation for DB:7AQ 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.
DB:7AQ 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.
AQ Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
AQ Group's share price is below the future cash flow value, and 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
AQ Group'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 AQ Group 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 Electrical industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare AQ Group's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare AQ Group's earnings growth to the Germany market average as no estimate data is available.
Unable to compare AQ Group's revenue growth to the Germany market average as no estimate data is available.
Unable to determine if AQ Group is high growth as no earnings estimate data is available.
Unable to determine if AQ Group 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.
AQ Group'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
4/6, 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. Anders S. Carlsson has been President and Chief Executive Officer at AQ Group AB (publ) since September 1, 2018 and its Head of Investor Relations since September 01, 2018. He is a Member of ABB Sweden local executive forum and is Division Manager for the ABB Electrification products division in Northern Europe. Prior to this, he has had a number of leading positions withinABB since 1992. He holds a Master of science in Mechanical Engineering from KTH, Stockholm.
Insufficient data for Anders to compare compensation growth.
Anders's remuneration is lower than average for companies of similar size in Germany.
Founder & Director
Chief Financial Officer
Head of Human Relations
Head of Business Development & IT
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the AQ Group board of directors is less than 3 years, this suggests a new board.
Board of Directors
Founder & Director
Who owns this company?
Recent Insider Trading
More shares have been bought than sold by AQ Group individual insiders in the past 3 months, but not in substantial volumes.
AQ Group AB (publ) manufactures and sells components and systems for industrial customers worldwide. The company operates through two segments, Component and System. It provides electric cabinets for the food industry, automatic teller machines, control and power equipment for ship cranes, control equipment for automated handling of goods in harbors, and control systems for motors and generators; and wiring harness systems and electromechanical modules to automotive, commercial vehicle, railway, and engineering industries. The company also offers thermoplastic components for automotive, medical, and engineering industries; and contract manufacturing services for sheet metal components and sheet metal assemblies to automotive, rolling stock, telecom, and electromechanical industries. In addition, it provides machines and automatic equipment, including ticket machines for parking and travel tickets, automatic teller machines, packaging machines, and printers and passport automation systems; and transformers and inductors for use in various applications comprising high-speed trains, relay protection systems, military equipment, airplanes, and equipment for process automation. Further, the company offers system solutions for automotive industry; and mechanical engineering services for sheet metal and plastic designs. AQ Group AB (publ) was founded in 1994 and is headquartered in Västerås, Sweden.
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