Discounted Cash Flow Calculation for DB:MKC 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:MKC 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.
ÅAC Microtec's share price is below the future cash flow value, and at a moderate discount (> 20%).
ÅAC Microtec'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
ÅAC Microtec's earnings available for a low price, and how does
this compare to other companies in the same industry?
ÅAC Microtec's earnings are expected to grow significantly at over 20% yearly.
ÅAC Microtec's revenue is expected to grow significantly at over 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.
ÅAC Microtec'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
Aerospace & Defense
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
0/6, 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. Luis Gomes has been the Chief Executive Officer at ÅAC Microtec AB (publ) since May 7, 2019. Mr. Gomes has been Commercial Director at Surrey Satellite Technology Limited since October 7, 2016 and served as its Director of Earth Observation and Science until October 7, 2016. Mr. Gomes has been a Director of Surrey Satellite Technology Limited until October 7, 2016. He holds a degree in Applied Physics from the University of Lisbon and an MSc in Satellite Engineering from the University of Surrey.
Insufficient data for Luis to compare compensation growth.
Insufficient data for Luis to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the ÅAC Microtec management team is about average.
Chief Executive Officer
Chief Financial Officer & Executive VP
Chief Technology Officer
Head of the Project Department
Chief Development Officer
Head of the Quality Control
CSO & CEO of AAC Microtec North America Inc.
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the ÅAC Microtec board of directors is about average.
Board of Directors
Chairman of the Board
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
ÅAC Microtec AB (publ) primarily provides products and services to the small satellite market in Sweden, the United Kingdom, and the United States. It offers microelectronics systems, and technology services and support. The company’s products include InnoSat, a spacecraft platform; nano, micro, and mini power conditioning and distribution units; and Bluestone, a satellite data management system that stores data onboard and selectively downloads data. Its products also comprise avionics products, such as Sirius OBC, an on-board computer system; Sirius TCM, a memory module with telemetry and telecommand functionality; and Sirius C&DH, a command and data handling system that comprises Sirius OBC computers and a Sirius TCM memory module. In addition, the company offers mission planning and mission support, equipment customization, custom equipment design, and qualification support services. It serves commercial, governmental, and educational customers. The company was founded in 2005 and is headquartered in Uppsala, Sweden.
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