Discounted Cash Flow Calculation for DB:MP2 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
MPC Container Ships
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:MP2 DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
MPC Container Ships
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
MPC Container Ships
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
MPC Container Ships's share price is below the future cash flow value, and at a moderate discount (> 20%).
MPC Container Ships'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
MPC Container Ships's
is considered below, and whether this is a fair price.
Price based on past earnings
MPC Container Ships's earnings available for a low price, and how does
this compare to other companies in the same industry?
MPC Container Ships is not considered high growth as it is expected to be loss making for the next 1-3 years.
MPC Container Ships's revenue is expected to grow by 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.
MPC Container Ships'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.
MPC Container Ships
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.
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
MPC Container Ships's finances.
The net worth of a company is the difference between its assets and liabilities.
MPC Container Ships is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
MPC Container Ships's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
MPC Container Ships'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 not covered by short term assets, assets are 0.3x 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.
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.
Mr. Constantin Baack has been Member of Management Board at MPC Münchmeyer Petersen Capital AG of MPC Münchmeyer Petersen & Co. GmbH since April 1, 2015. Mr. Baack serves as Member of Management Board at MPC Container Ships Invest B.V. He serves as Member of Management Board for Shipping at MPC Münchmeyer Petersen Capital AG since March 31, 2018. Mr. Baack served as Chief Financial Officer of MPC Münchmeyer Petersen Capital AG from April 1, 2015 to April 1, 2018. He joined MPC Capital in April 2008 and has held various executive positions since then. He served as Managing Director of Ahrenkiel Steamship and was responsible for the consolidation of the MPC group’s shipping activities. Before joining MPC Capital he has worked for Hamburg Süd in Sydney and for the accounting firm E&Y. He serves as Managing Director and Chief Executive Officer of MPC Container Ships ASA. Mr. Baack holds a Master’s Degree in international business from the University of Sydney.
Insufficient data for Constantin to compare compensation growth.
Constantin's remuneration is about average for companies of similar size in Germany.
MD & CEO
Chief Financial Officer
Board of Directors
Chairman of the Board of Directors
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
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