Discounted Cash Flow Calculation for DB:UK1 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:UK1 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.
Ukrtelecom's share price is below the future cash flow value, and at a moderate discount (> 20%).
Ukrtelecom'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
Ukrtelecom's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Ukrtelecom has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Telecom industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Ukrtelecom's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Ukrtelecom's earnings growth to the Germany market average as no estimate data is available.
Unable to compare Ukrtelecom's revenue growth to the Germany market average as no estimate data is available.
Unable to determine if Ukrtelecom is high growth as no earnings estimate data is available.
Unable to determine if Ukrtelecom 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.
Ukrtelecom'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
1/6, 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. Yuriy P. Kurmaz has been the Chief Executive Officer and Director of Public Joint-Stock Company Ukrtelecom since February 24, 2014. In 2004-2014, before joining Ukrtelecom JSC, Mr. Kurmaz was holding executive positions at Astelit (TM life:). Prior to his work at Astelit, he was Deputy General Director and the General Director of Ukrainian Radio Systems (Wellcom). He graduated from Kyiv Air Force Engineering Academy, majoring in Engineering mathematics in 1984. He holds DPhil (Engineering), majoring in Cybernetics, systems analysis, operations research and simulation of complex systems. Mr. Kurmaz graduated from Kyiv National Economic University, majoring in Marketing management in 1994.
Insufficient data for Yuriy to compare compensation growth.
Insufficient data for Yuriy to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Ukrtelecom management team is over 5 years, this suggests they are a seasoned and experienced team.
CEO & Director
Chief Financial Officer
Director of Technical Directorate
Director of Legal Support & Business Support
Director of Corporate Communications Department
Vice President - Marketing & Sales
Director of Corporate Development Directorate
Director of Personnel Management & Organizational Development
Head of Centralised Sale Office
Board of Directors Tenure
Average tenure of the
board of directors in years:
The tenure for the Ukrtelecom board of directors is about average.
Board of Directors
Chairman of the Supervisory Board
Member of Supervisory Board
Member of Supervisory Board
Member of Supervisory Board
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Public Joint-Stock Company Ukrtelecom’s (FRA:UK1) Investment Returns Are Lagging Its Industry
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Ukrtelecom: 0.043 = ₴423m ÷ (₴12b - ₴2.0b) (Based on the trailing twelve months to December 2018.) So, Ukrtelecom has an ROCE of 4.3%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.
Public Joint-Stock Company Ukrtelecom (FRA:UK1): Commentary On Fundamentals
In the case of Public Joint-Stock Company Ukrtelecom (FRA:UK1), it is a company that has been able to sustain great financial health, trading at an attractive share price. … Undervalued with excellent balance sheet UK1's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. … UK1's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment.
Do Public Joint-Stock Company Ukrtelecom’s (FRA:UK1) Returns On Capital Employed Make The Cut?
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Is Public Joint-Stock Company Ukrtelecom (FRA:UK1) A Financially Sound Company?
While small-cap stocks, such as Public Joint-Stock Company Ukrtelecom (FRA:UK1) with its market cap of ₴56.18m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Companies operating in the Telecom industry facing headwinds from current disruption,.
Why Public Joint-Stock Company Ukrtelecom (FRA:UK1) May Not Be As Efficient As Its Industry
Check out our latest analysis for Ukrtelecom Breaking down ROE — the mother of all ratios Return on Equity (ROE) weighs Ukrtelecom’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Ukrtelecom’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity DB:UK1 Last Perf Jun 4th 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.
Public Joint-Stock Company Ukrtelecom provides fixed line telephony and Internet services primarily in Ukraine. The company offers fixed line services, including international, long-distance, and local telephony services; data transmission services and VPN construction services; Internet access services; IP-permanent connection through a dedicated line; hardware and virtual hosting services; dedicated non-commutated communication channels; videoconferencing; audio text services; and IPTV and other telecommunications services. It also provides ICT services, including cloud PBX services, cloud IT infrastructure leasing services, and DDoS attack protection services. The company was founded in 1993 and is based in Kyiv, Ukraine. Public Joint-Stock Company Ukrtelecom is a subsidiary of LLC ‘ESU’.
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