Discounted Cash Flow Calculation for DB:UZAA 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:UZAA DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
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
is considered below, and whether this is a fair price.
Price based on past earnings
Flughafen Zürich's earnings available for a low price, and how does
this compare to other companies in the same industry?
Flughafen Zürich's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Flughafen Zürich's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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.
Flughafen Zürich'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
4/6, 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
Flughafen Zürich's finances.
The net worth of a company is the difference between its assets and liabilities.
Flughafen Zürich is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Flughafen Zürich's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Flughafen Zürich'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 0.6x 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.
TENURE AS CEO
Mr. Stephan Widrig has been the Chief Executive Officer of Flughafen Zürich AG since January 1, 2015. Mr. Widrig has been Member of the Management Board at Flughafen Zürich AG since July 1, 2008 and served as its Head of Marketing & Real Estate and Chief Commercial Officer. Mr. Widrig served as Head of Corporate Development at Flughafen Zürich AG since July 1, 2008. He served as Business Consultant of Arthur Anderson from 1997 to 1999. He joined Flughafen Zürich AG (formerly Flughafendirektion, FDZ) in 1999 and was responsible for real estate operations. He served as Chief Financial and Commercial Officer of Kempegowda International Airport Limited from 2005 to 2008. Mr. Widrig holds MA in Business Economics from the University of St. Gallen.
Stephan's compensation has been consistent with company performance over the past year, both up more than 20%.
Stephan's remuneration is lower 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 Flughafen Zürich management team is about average.
CEO & Member of Management Board
CFO, Chief Risk Officer & Member of Management Board
Chief Commercial Officer & Member of Management Board
Chief Real Estate Officer & Member of Management Board
COO & Member of Management Board
Head of Investor Relations
General Counsel & General Secretary
Head of Corporate Communications
Head of Public Affairs
Head of Master Planning
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Flughafen Zürich board of directors is about average.
Board of Directors
Chairman of the Board
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Flughafen Zürich AG owns and operates the Zürich Airport in Switzerland. It provides infrastructure and services related to flight operations, including the runway system, apron zones, passenger zones in the terminals, freight operations, passenger handling and services, and safety; support for passengers with reduced mobility; and check-in areas and facilities, baggage sorting and handling system, aircraft power supply system, handling apron areas, and the related services. The company also offers passenger and aircraft security measures with systems and their operation and maintenance designed to prevent actions of various kind that affect the security of commercial civil aviation, primarily facilities for checks on passengers, hand luggage, checked baggage, and freight. In addition, it provides air security-related equipment and services comprising relevant systems and their operation and maintenance; and airport policing duties, such as surveillance patrols and other security-related duties. Further, the company develops, markets, and operates the commercial infrastructure at Zurich Airport, including retail and restaurant/catering operations at the airport, renting premises, parking services, and various commercial services. Flughafen Zürich AG is based in Zurich, Switzerland.
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