Parity Group plc, together with its subsidiaries, provides a range of recruitment, and business and technology solutions to clients in the public and private sectors in the United Kingdom.
The last earnings update was 153 days ago.
Discounted Cash Flow Calculation for BST:PAY1 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.
BST:PAY1 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.
Parity Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
Parity Group's share price is below the future cash flow value, but not 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
Parity Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
Unable to determine if Parity Group is high growth as no earnings estimate data is available.
Parity Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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.
Parity 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
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. Matthew Bayfield, Matt Co-founded Tree LLP (Tree (London) Limited) in 2001 and serves as its Partner. Mr. Bayfield has been a Chief Executive Officer and Director of Parity Group plc since February 5, 2019. He served as the Managing Director of Parity Consulting at Parity Group plc since May 2018. Mr. Bayfield serves as Joint Managing Director of Cagney PLC. He serves as Joint Managing Director of Tree (London) LLP at Cubo Communications Group Plc. He has been Head of Data Practice for EAME at OgilvyOne, LLC since January 2013. He served as Head of Data Planning of Archibald Ingall Stretton. He lectured in social research methods. Mr. Bayfield served as Marketing analysis Manager at Pell & Bales and Business solutions consultant of Claritas UK. He graduated in Psychology.
Insufficient data for Matt to compare compensation growth.
Insufficient data for Matt to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Parity Group management team is less than 2 years, this suggests a new team.
Group Finance Director & Director
CEO & Director
Head of Consulting
Head of L&OD Practice
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Parity Group board of directors is about average.
Board of Directors
Group Finance Director & Director
CEO & Director
David Samuel Firth
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Parity Group plc, together with its subsidiaries, provides a range of recruitment, and business and technology solutions to clients in the public and private sectors in the United Kingdom. The company operates through two segments, Parity Professionals and Parity Consultancy Services. The Parity Professionals segment provides interim recruitment and graduate placement services to a range of clients. It serves central and local government in the public sector; and utilities, FMCG, insurance, oil, and transport clients in the private sector. The Parity Consultancy Services segment offers business intelligence, technology, and business consultancy services. This segment serves central government departments in the public sector; and to FMCG and legal clients in the private sector. Parity Group plc was founded in 1993 and is based in London, the United Kingdom.
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