Discounted Cash Flow Calculation for DB:7BV 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:7BV 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.
BrightView Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
BrightView Holdings'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
BrightView Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
BrightView Holdings's earnings are expected to grow significantly at over 20% yearly.
BrightView Holdings's revenue is expected to grow by 1.7% 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.
BrightView Holdings'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.
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
BrightView Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
BrightView Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
BrightView Holdings's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
BrightView Holdings'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.
Low level of unsold assets.
Debt is not covered by short term assets, assets are 0.5x 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.
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. Andrew V. Masterman has been Chief Executive Officer, President and Director at BrightView Landscapes, LLC since December 2016. Mr. Masterman is Chief Executive Officer and Director of BrightView Holdings, Inc. since December 2016 and serves as its President. Mr. Masterman served as President of Wyman-Gordon at Precision Castparts Corp. since May 2015. Mr. Masterman served as Executive Vice President of Precision Castparts Corp. since November 2013 and served as its President of Airframe Products since November 2013. Mr. Masterman served as Vice President and President of PCC Fastener Products at Precision Castparts Corp. since April 2012. Prior to joining PCC, Mr. Masterman served as the Chief Executive Officer and President of The ESAB Group, Inc. (ESAB North America). He served as the Group President of Platinum Group Metals Ltd. (Metalico’s Platinum Group Metals Division) since October 2008. He served as the President of Walbro Engine Management, LLC. Mr. Masterman served as the President and Chief Operating Officer of Spartan Light Metal Products. He served as the President of several TI Automotive & Walbro businesses. He served as the President of PGM Group at Metalico Inc. and had overall responsibility for its precious metal recycling operations. He has nearly fifteen years of executive experience managing industrial concerns. He has been Director at BrightView Landscapes, LLC since December 2016. Mr. Masterman holds degree in Business and Engineering.
Andrew's compensation has been consistent with company performance over the past year, both up more than 20%.
Andrew's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the BrightView Holdings management team is about average.
Executive VP & CFO
President of Maintenance Services
President of Development Services & Landscape Development
Chief Accounting Officer
Executive VP & Chief Information Officer
VP of Communications & Public Affairs
Executive VP & Chief Marketing Officer
Executive VP & Chief Human Resources Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the BrightView Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors
Chairman of the Board
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
BrightView Holdings, Inc. provides commercial landscaping services in the United States. It operates through two segments, Maintenance Services and Development Services. The Maintenance Services segment delivers a suite of recurring commercial landscaping services, including mowing, gardening, mulching and snow removal, water management, irrigation maintenance, tree care, golf course maintenance, and specialty turf maintenance. It serves corporate campuses and commercial properties, homeowners’ associations, public parks, international hotels and resorts, airport authorities, municipalities, hospitals and other healthcare facilities, educational institutions, restaurants and retail, golf courses, and others. This segment’s customer base includes approximately 13,000 office parks and corporate campuses, 9,000 residential communities, and 450 educational institutions. The Development Services segment offers landscape architecture and development services for new facilities and redesign projects. Its services include project design and management services, landscape architecture and installation, irrigation installation, tree nursery and installation, pool and water features, sports field, and other services. The company was founded in 1939 and is headquartered in Blue Bell, Pennsylvania.
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