Discounted Cash Flow Calculation for BST:GTY using Dividend Discount Model Model
The calculations below outline how an intrinsic value for
Gateway Real Estate
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.
The current share price of
Gateway Real Estate
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
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
Gateway Real Estate's
is considered below, and whether this is a fair price.
Price based on past earnings
Gateway Real Estate's earnings available for a low price, and how does
this compare to other companies in the same industry?
Gateway Real Estate's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Gateway Real Estate's revenue is expected to grow significantly at over 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.
Gateway Real Estate'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.
Gateway Real Estate
has a total score of
5/6, 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
Gateway Real Estate's finances.
The net worth of a company is the difference between its assets and liabilities.
Gateway Real Estate is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Gateway Real Estate's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Gateway Real Estate'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.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 1.7x 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.
If You Like EPS Growth Then Check Out Gateway Real Estate (BST:GTY) Before It's Too Late
So if you're like me, you might be more interested in profitable, growing companies, like Gateway Real Estate (BST:GTY). … How Fast Is Gateway Real Estate Growing. … The good news is that Gateway Real Estate is growing revenues, and EBIT margins improved by 34.3 percentage points to 130%, over the last year.
Despite Its High P/E Ratio, Is Gateway Real Estate AG (BST:GTY) Still Undervalued?
We'll show how you can use Gateway Real Estate AG's (BST:GTY) P/E ratio to inform your assessment of the investment opportunity. … Based on the last twelve months, Gateway Real Estate's P/E ratio is 20.38. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Here's What Gateway Real Estate AG's (BST:GTY) P/E Ratio Is Telling Us
We'll show how you can use Gateway Real Estate AG's (BST:GTY) P/E ratio to inform your assessment of the investment opportunity. … Gateway Real Estate has a P/E ratio of 6.35, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Are Gateway Real Estate AG's (BST:GTY) Interest Costs Too High?
GTY's debt levels surged from €3.22M to €103.52M over the last 12 months – this includes both the current and long-term debt. … With this increase in debt, GTY's cash and short-term investments stands at €17.87M for investing into the business. … For GTY, the ratio of 0.42x suggests that interest is not strongly covered, which means that lenders may be more reluctant to lend out more funding as GTY’s low interest coverage already puts the company at higher risk of default.Next Steps: At its current level of cash flow coverage, GTY has room for improvement to better cushion for events which may require debt repayment.
Gateway Real Estate AG develops and sells commercial and residential properties in Germany. It also offers urban and building land development, conversion, and revitalization services. The company was founded in 2006 and is based in Frankfurt am Main, Germany.
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