Discounted Cash Flow Calculation for DB:F5U 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:F5U 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.
Cellcom Israel's share price is below the future cash flow value, and at a moderate discount (> 20%).
Cellcom Israel'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
Cellcom Israel's earnings available for a low price, and how does
this compare to other companies in the same industry?
Cellcom Israel's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Cellcom Israel 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.
Cellcom Israel'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. Avraham Gabbay,also known as Avi, has been Chief Executive Officer at Cellcom Israel Ltd. since January 19, 2019. Mr. Gabbay served as the Chief Executive Officer of Bezeq The Israel Telecommunication Corporation Limited since November 11, 2007 and served as its President until January 2013. Mr. Gabbay held various leadership positions in Israel's politics from 2014 to September 2019, including as the Minister of Environmental Protection, the chairman of the Havoda (labor) Party and a member of the Israeli Parliament, was one of the founders of the Kulanu Party and from 2013 to 2015 also served as the chairman of the board of the Appleseeds non-profit organization. Mr. Gabbay served as Acting chief Executive of Bezeq The Israel Telecommunication Corporation Limited from June 2007 to November 2007. He served as Chief Executive Officer of Bezeq International Ltd. from July 2003 to June 2007 and served as its President and VP Economics and Strategy and VP Human Resources. He served as Director of DBS Satellite Services (1998) Ltd. Mr. Gabbay has a B.A. in Economics and an MBA from Hebrew University.
Insufficient data for Avi to compare compensation growth.
Insufficient data for Avi 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 average tenure for the Cellcom Israel management team is over 5 years, this suggests they are a seasoned and experienced team.
Chief Financial Officer
Chief Technology Officer
VP of Legal Affairs & Corporate Secretary
Chief Executive Officer
Spokeswoman & Public Relations Manager
Vice President of Sales and Service
Vice President of Marketing
Vice President of Human Resources
Head of Market Intelligence at GK Investor & Public Relations
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Cellcom Israel board of directors is less than 3 years, this suggests a new board.
Board of Directors
Chairman of the Board
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Recent Insider Transactions
Max Price (€)
18. Dec 19
Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria
Cellcom Israel Ltd. provides cellular and landline telecommunications services in Israel. It operates through two segments, Cellular and Fixed-line. The company offers basic cellular telephony services, such as voice mail, cellular fax, call waiting, call forwarding, caller identification, conference calling, and inbound and outbound roaming services; and data transfer, and upload and download services. It also provides value-added services comprising SMS and MMS services; cloud backup and content services, including Cellcom Volume music application and Cellcom TV application; text and multimedia messaging services; and advanced cellular content services. In addition, the company sells handsets, modems, tablets, and laptops, as well as offers repair services. Further, it provides transmission and data services through fiber-optic infrastructure and complementary microwave links to selected business customers and telecommunications operators. Additionally, the company offers Internet infrastructure and connectivity, international calling, landline telephony, operator, teleconferencing, and international long distance services. As of December 31, 2017, it had approximately 10.6 million cellular subscribers. Cellcom Israel Ltd. was founded in 1994 and is headquartered in Netanya, Israel.
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