Discounted Cash Flow Calculation for DB:WNL 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:WNL 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.
Wallenius Wilhelmsen's share price is below the future cash flow value, and at a moderate discount (> 20%).
Wallenius Wilhelmsen'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
Wallenius Wilhelmsen's earnings available for a low price, and how does
this compare to other companies in the same industry?
Wallenius Wilhelmsen's earnings are expected to grow significantly at over 20% yearly.
Wallenius Wilhelmsen's revenue is expected to grow by 2.8% 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.
Wallenius Wilhelmsen'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
3/6, 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
Wallenius Wilhelmsen's finances.
The net worth of a company is the difference between its assets and liabilities.
Wallenius Wilhelmsen is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Wallenius Wilhelmsen's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Wallenius Wilhelmsen'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. Craig Jasienski has been the Chief Executive Officer at Wallenius Wilhelmsen Logistics ASA (Alternate Name Wilh. Wilhelmsen ASA) since April 4, 2017 and serves as its President. Mr. Jasienski served as Chief Executive Officer and President at Eukor Car Carriers, Inc. since January 2013. He served as Chief Executive Officer of United European Car Carriers since 2007. He started his career in Wilhelmsen Lines in his home country Australia and has since held various management positions in Wilhelmsen Lines and Wallenius Wilhelmsen Logistics until he started in UECC in 2005 as director commercial management.
Craig's compensation has been consistent with company performance over the past year, both up more than 20%.
Craig's remuneration is about 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 Wallenius Wilhelmsen management team is about average.
CEO & President
Deputy CEO & Director
Chief Financial Officer
Chief Executive Officer of EUKOR Car Carriers
Head of Corporate Finance & IR
Senior Legal Counsel
Head of Corporate Communication
Chief Human Resources Officer
Group Senior Vice President of HR & Communications
Chief Transformation Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Wallenius Wilhelmsen board of directors is less than 3 years, this suggests a new board.
Board of Directors
Chairman of the board
Deputy CEO & Director
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Wallenius Wilhelmsen ASA, together with its subsidiaries, provides roll-on roll-off (ro-ro) shipping and vehicle logistics services worldwide. It operates through Ocean and Land Based segments. The company offers ocean transport services to cars, ro-ro cargo, and project cargo for car manufacturers, and manufacturers of agriculture and other high and heavy equipment. It also provides vehicle logistics services, including plant and port based technical services, marine terminal services, and inland distribution service. The company operates through a fleet of 130 vessels. Wallenius Wilhelmsen ASA was founded in 1861 and is headquartered in Lysaker, Norway.
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