Discounted Cash Flow Calculation for DB:6BW 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:6BW 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.
BW Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).
BW Energy'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
BW Energy's earnings available for a low price, and how does
this compare to other companies in the same industry?
BW Energy's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
BW Energy'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.
BW Energy'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
Oil and Gas
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.
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. Carl Krogh Arnet is the Chief Executive Officer at BW Energy Limited since July 1, 2019. He has also been the Managing Director of APL since 1996. Prior to joining APL, Mr Arnet had various positions at Norsk Hydro in the period from 1981 to 1996, including Offshore Installation Manager and Vice President.
Current directorships and senior management positions:
• Maritime and Port Authority of Singapore (Director), BW Offshore Limited (Director) and Kolbjørn Invest I AS (Director).
Previous directorships and senior management positions last five years:
• Nofamo Greåkerveien 85 AS (Vice Chairman), Nofamo AS (Vice Chairman), Kolbjørn Invest II AS (chairman), APL Property AS, Canal Street AS, pl Technology AS, APL Norway AS, Wireless Net Communications AS (Vice Chairman) and Nexus Floating Production Ltd (Vice Chairman).
Mr. Arnet holds an M.Sc. in Engineering from The Norwegian University of Science and Technology (NTNU) in the year 1975 to 1979 and an MBA in Management from the Norwegian School of Management (BI) in the year 1994 to 1996.
Insufficient data for Carl to compare compensation growth.
Insufficient data for Carl to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Chief Executive Officer
Chief Financial Officer
Chief Operation Officer
Head of Business Development
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the BW Energy board of directors is less than 3 years, this suggests a new board.
Board of Directors
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
BW Energy Limited engages in the acquisition, exploration, development, and production of oil and natural gas in Africa. It primarily holds interests in three hydrocarbon licenses in Gabon, Brazil, and Namibia. The company was founded in 2016 and is based in Oslo, Norway.
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