Discounted Cash Flow Calculation for DB:S6N using Dividend Discount Model Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future dividends to their present value. This
approach is used for finance firms where free cash flow is difficult to estimate
(e.g. Banks/ Insurance firms).
If the firm does not pay the majority of its earnings out as a dividend this
method will often arrive at a value significantly lower than the share price.
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.
AusNet Services's share price is below the future cash flow value, and at a moderate discount (> 20%).
AusNet Services's share price is below the future cash flow value, but not 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
AusNet Services's earnings available for a low price, and how does
this compare to other companies in the same industry?
AusNet Services's earnings are expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
AusNet Services's revenue is expected to grow by 2.6% 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.
AusNet Services'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
2/6, 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. Tony Narvaez serves as a Managing Director and Director of AusNet Services Ltd and AusNet Services Holdings Pty Ltd since November 01, 2019. Mr. Narvaez has been Chief Executive Officer at Endeavour Energy since September 11, 2017. Mr. Narvaez has been Chief Executive of UE & MG at DUET Group since October 2015. Mr. Narvaez has a wealth of experience in executive positions across the Australian energy sector, including with General Electric, ATCO Australia and Verve Energy. He was Chief Executive Officer at United Energy Distribution Holdings Pty Ltd. since October 19, 2015 until 2019. He joined UE and MG from General Electric, where he served as Regional General Manager of Distributed Power across ANZ, PNG and Indonesia. Mr. Narvaez holds a Bachelor’s degree in Commerce and Economics, a Diploma in Financial Services (Energy Trading) and completed executive studies at Harvard Business School. Distribution.
Insufficient data for Tony to compare compensation growth.
Insufficient data for Tony 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 tenure for the AusNet Services management team is about average.
Executive General Manager of Technology
Executive General Manager of Mondo
Executive General Manager of Regulated Energy Services
MD & Director
Chief Financial Officer
Executive General Manager of Operations & Services
Head of Tax & Investor Relations
Executive General Manager of People
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the AusNet Services board of directors is about average.
Board of Directors
Peter Edward Mason
MD & Director
Independent Non-Executive Director
Independent Non-Executive Director
Lead Independent Director
Chee Meng Tan
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
AusNet Services Ltd owns and operates an electricity transmission network in Australia. It operates through Electricity Distribution, Gas Distribution, Electricity Transmission, and Mondo segments. The Electricity Distribution segment carries electricity from the high voltage transmission network to end users, including metering. The Gas Distribution segment carries natural gas to commercial and residential end users, including metering in central and western Victoria. The Electricity Transmission segment owns and manages an electricity transmission network, including transmission lines and towers, which carry electricity at high voltages from power generators to electricity distributors in Victoria. The Mondo segment provides contracted infrastructure asset services and specialized technology solutions to enable energy data and asset intelligence services, as well as specialist metering, asset intelligence, and telecommunication solutions to the utility and infrastructure sectors. It primarily serves customers operating in utility, renewables, and infrastructure sectors of electricity, water, gas, and rail. The company operates through an electricity transmission network of 6,700 kilometers of lines, 53 terminal stations and switchyards, and approximately 13,000 towers; and electricity distribution network of 736,000 customers, 60 zone substations, 7,500 gigawatt hour of, and 383,000 power poles. It also operates a gas distribution network of 711,000 customers, 11,700 kilometers of gas mains, and 63 petajoules of throughput. The company was formerly known as SP AusNet Ltd. and changed its name to AusNet Services Ltd in August 2014. AusNet Services Ltd was incorporated in 2014 and is headquartered in Southbank, Australia.
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