Discounted Cash Flow Calculation for DB:1MTA 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:1MTA 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.
Matas's share price is below the future cash flow value, and at a moderate discount (> 20%).
Matas'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
Matas's earnings available for a low price, and how does
this compare to other companies in the same industry?
Matas's earnings are expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
Matas's revenue is expected to grow by 2.1% 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.
Matas'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
0/6, 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. Gregers Christian Wedell-Wedellsborg has been the Chief Executive Officer of MATAS A/S since November 1, 2017. Mr. Wedell-Wedellsborg serves as President and Chief Executive Officer of Coop Danmark A/S. Mr. Wedell-Wedellsborg has a broad background in retail. He served as group executive vice president at COOP Danmark A/S, where since 2015 was in charge of operations at SuperBrugsen, Dagli'Brugsen, Kvickly and Irma along with a total of 30,000 employees and aggregrate revenue of more than DKK 30 billion. He was Director of COOP Danmark's e-commerce and members' programme from 2012 to 2014. He served as Director of Coop Bank A/S until August 28, 2017. From 2007 to 2012, he was Director of Digital Media at TV2 Danmark A/S. He worked six years at Berlingske Media. He has served on the boards of directors of a large number of digital entrepreneurial businesses, including Downtown ApS and Momondo Norden A/S. He serves on the boards of directors of Gyldendal A/S, Vallø Stift, Coop Bank A/S and AllUnite A/S. He is a member of the Danish government's Disruption Agency. Mr. Wedell-Wedellsborg is Captain of the Royal Life Guards Reserve. He holds a MSc in Political Science from the University of Copenhagen and a Master in Public Administration from Harvard.
Gregers's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
Gregers'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 Matas management team is about average.
Chief Executive Officer
Chief Financial Officer
Head of Investor Relations & Corporate Affairs
Head of Communication
Director of Marketing
Director of Human Resources
CIO & Head of IT
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Matas board of directors is about average.
Board of Directors
Independent Chairman of the Board
Deputy Chairman of the Board
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Matas A/S, together with its subsidiaries, operates a chain of retail stores that offers beauty, personal care, and health products in Denmark. It offers beauty and personal care products, including cosmetics, fragrances, skincare, and haircare products; vitamins, minerals, supplements, specialty foods, and herbal medicinal products; household and personal care products, such as household cleaning and maintenance, baby care, foot care, and sports-related products; and over-the-counter medicines, nursing products, etc. The company operates through 279 physical stores. It also operates through Websites, such as matas.dk, helsebixen.dk, jala-helsekost.dk, made4men.dk, etc. Matas A/S was founded in 1949 and is based in Allerød, Denmark.
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