Discounted Cash Flow Calculation for BST:4LY1 using Excess Returns Model Model
The calculations below outline how an intrinsic value for EFG-Hermes HoldingE is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
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.
EFG-Hermes HoldingE's share price is below the future cash flow value, but not at a moderate discount (< 20%).
EFG-Hermes HoldingE'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
EFG-Hermes HoldingE's earnings available for a low price, and how does
this compare to other companies in the same industry?
EFG-Hermes HoldingE's earnings are expected to grow by 11.9% yearly, however this is not considered high growth (20% yearly).
EFG-Hermes HoldingE's revenue is expected to grow by 8.1% 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.
EFG-Hermes HoldingE'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.
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
EFG-Hermes HoldingE's finances.
The net worth of a company is the difference between its assets and liabilities.
EFG-Hermes HoldingE's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
EFG-Hermes HoldingE's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
EFG-Hermes HoldingE'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 covered by short term assets, assets are 1.6x 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.
Karim Ali AwadSalame
TENURE AS CEO
Mr. Karim Ali Awad Saleh Salame serves as the Group Chief Executive Officer at EFG-Hermes Holding SAE since December 16, 2013 and serves as its Director since May 2, 2013. Mr. Salame has been in the leadership role at EFG Hermes since 2013 and since then has led the firm to return to profitability by cutting unwarranted expenses, selling non-core assets and distributing excess cash to shareholders. Since 2014, Mr. Salame has worked across the firm's different divisions in building a comprehensive regional advisory pipeline, extending leadership, refocusing private equity business and continuing to provide quality research offering. Prior to this, he also served as the Chief Executive Officer of Investment Banking platform at the firm, where he was responsible for the firm's Investment Banking, Securities Brokerage, Research, Asset Management and Private Equity divisions; alongside developing the firm's debt advisory practice. Previously, Mr. Salame also served as the Head of Investment Banking at the firm, where he joined the division in 1998 and closed transactions with an aggregate value of more than $40 billion. He served as a Director of Credit Libanais SAL since February 28, 2014 until June 2, 2017. Mr. Salame has advised corporations on equity offerings and mergers and acquisitions transactions. He graduated with highest honours in Bachelor of Arts in Business Administration and a minor in Economics from the American University
Insufficient data for Karim Ali Awad to compare compensation growth.
Insufficient data for Karim Ali Awad 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 EFG-Hermes HoldingE management team is about average.
Karim Ali Awad Salame
Group CEO & Director
Mohamed Khaled Mohamed Khabir
Group Chief Financial Officer
Mohamed El Wakeel
Group Chief Operating Officer
Ahmed El Din
Head of Research
Head of IR
Abdel Wahab Gadayel
Group Chief Risk & Compliance Officer
Head of Marketing & Communications
Group Chief Human Resources Officer
Co-Head of Investment Banking
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the EFG-Hermes HoldingE board of directors is less than 3 years, this suggests a new board.
Board of Directors
Non-Executive Chairperson of the Board
Karim Ali Awad Salame
Group CEO & Director
Yasser Suleiman El Mallawany
Non-Executive Vice Chairman
Non-Executive Board Member
Marwan Nabil Elaraby
Abdulla Khalil Muhammad Al Mutawa
Khalid Mana Al Otaiba
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
EFG Hermes Holding S.A.E. provides investment banking products and services in the Egypt, Gulf Cooperation Council, Lebanon, and internationally. The company provides securities brokerage services for institutions, and high-net-worth and individual clients; investment banking advise to private companies, listed corporations, governments, and foreign clients; and asset management products, such as traditional and alternative investments comparing equity, fixed-income, money-market, indexed, and capital-guaranteed, as well as Shariah compliant mandates. It also offers private equity; equity research, strategy and macro notes, sector overviews, economic notes, industrial research and country-specific economic, and banking data reports; and commercial banking services. EFG Hermes Holding S.A.E. was founded in 1984 and is headquartered in 6th of October, Egypt.
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