Discounted Cash Flow Calculation for DB:ABA using Dividend Discount Model Model
The calculations below outline how an intrinsic value for
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.
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.
ALBA's share price is below the future cash flow value, and at a moderate discount (> 20%).
ALBA'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
ALBA'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 ALBA 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 Commercial Services industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare ALBA's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare ALBA's earnings growth to the Germany market average as no estimate data is available.
Unable to compare ALBA's revenue growth to the Germany market average as no estimate data is available.
Unable to determine if ALBA is high growth as no earnings estimate data is available.
Unable to determine if ALBA 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.
ALBA'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
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Is ALBA SE (FRA:ABA) Struggling With Its 2.1% Return On Capital Employed?
The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for ALBA: 0.021 = €2.9m ÷ (€187m - €46m) (Based on the trailing twelve months to December 2018.) Therefore, ALBA has an ROCE of 2.1%. … How ALBA's Current Liabilities Impact Its ROCE Current liabilities are short term bills and invoices that need to be paid in 12 months or less. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.
Here's Why ALBA (FRA:ABA) Can Manage Its Debt Responsibly
Importantly, ALBA SE (FRA:ABA) does carry debt. … Over the last two years, ALBA actually produced more free cash flow than EBIT. … Our View Happily, ALBA's impressive conversion of EBIT to free cash flow implies it has the upper hand on its debt.
Should ALBA SE (FRA:ABA) Be Part Of Your Dividend Portfolio?
DB:ABA Historical Dividend Yield, June 19th 2019 Payout ratios Dividends are usually paid out of company earnings. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see ALBA has grown its earnings per share at 57% per annum over the past five years. … Earnings per share have been growing very rapidly, although the company is also paying out virtually all of its profit in dividends.
How Do ALBA SE’s (FRA:ABA) Returns Compare To Its Industry?
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.
The ALBA (FRA:ABA) Share Price Is Up 46% And Shareholders Are Holding On
As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth. … ALBA actually saw its revenue drop by 47% per year over three years. … The revenue growth might be lacking but the share price has gained 14% each year in that time.
What Investors Should Know About ALBA SE's (FRA:ABA) Financial Strength
Investors are always looking for growth in small-cap stocks like ALBA SE (FRA:ABA), with a market cap of €762.60m. … However, an important fact which most ignore is: how financially healthy is the business? … since poor capital management may bring about bankruptcies,
What Investors Should Know About ALBA SE's (FRA:ABA) Financial Strength
Additionally, ABA has produced €16.25M in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 195.32%, signalling that ABA’s current level of operating cash is high enough to cover debt. … ABA’s level of debt is low relative to its total equity, at 6.73%. … Next Steps: ABA’s high cash coverage and low debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow.
ALBA SE provides environmental services in Europe. The company provides transport packaging, sales packaging, containers, kraft paper sacks, deposit solutions, recyclable plastics, waste electrical and electronic equipment, energy-saving bulbs and fluorescent tubes, plastic roofing and waterproofing sheets, and sorting services. It also offers consulting service for facility management and the improvement of recycling rates, pan-European packaging licensing, clearing service, battery recycling, and packaging optimization services, as well as services for dealing with the EU Chemicals Regulation. In addition, it is involved in refurbishing IT and communication devices for reuse, and reusable printer ink/toner cartridges; disposal and waste management activities; and the provision of property and facility management services. Further, the company engages in pooling of returnable transport packaging, pooling of pallets, and reverse logistics operations; and recyclable material trading business. The company was formerly known as INTERSEROH SE and changed its name to ALBA SE in July 2012. ALBA SE was founded in 1991 and is based in Cologne, Germany.
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