Discounted Cash Flow Calculation for HLSE:ESENSE using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Enersense International Oyj
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.
HLSE:ESENSE DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
Enersense International Oyj
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
Enersense International Oyj
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Enersense International Oyj's share price is below the future cash flow value, and at a moderate discount (> 20%).
Enersense International Oyj'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
Enersense International Oyj's
is considered below, and whether this is a fair price.
Price based on past earnings
Enersense International Oyj's earnings available for a low price, and how does
this compare to other companies in the same industry?
Enersense International Oyj's earnings are expected to grow significantly at over 20% yearly.
Enersense International Oyj's revenue is expected to grow by 3.9% 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.
Enersense International Oyj'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.
Enersense International Oyj
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
Enersense International Oyj's finances.
The net worth of a company is the difference between its assets and liabilities.
Enersense International Oyj is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Enersense International Oyj's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Enersense International Oyj'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.
Low level of unsold assets.
Debt is covered by short term assets, assets are 4x 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.
Investors Who Bought Enersense International Oy (HEL:ESENSE) Shares A Year Ago Are Now Down 64%
View our latest analysis for Enersense International Oy Given that Enersense International Oy didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. … In the last year Enersense International Oy saw its revenue grow by 0.2%. … A Different Perspective Enersense International Oy shareholders are down 64% for the year, even worse than the market loss of 0.07%.
What You Should Know About Enersense International Oy's (HEL:ESENSE) Financial Strength
Investors are always looking for growth in small-cap stocks like Enersense International Oy (HEL:ESENSE), with a market cap of €11m. … However, an important fact which most ignore is: how financially healthy is the business? … the current state of its operations and pathway to profitability.
Enersense International Oy (HEL:ESENSE): Time For A Financial Health Check
Investors are always looking for growth in small-cap stocks like Enersense International Oy (HEL:ESENSE), with a market cap of €23m. … However, an important fact which most ignore is: how financially healthy is the business? … the current state of its operations and pathway to profitability.
Is Enersense International Oy (HEL:ESENSE) Attractive At Its Current PE Ratio?
While this makes ESENSE appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio … What you need to know about the P/E ratio
Want To Invest In Enersense International Oy (HEL:ESENSE)? Here's How It Performed Lately
In this article, I will take a look at Enersense International Oy's (HLSE:ESENSE) most recent earnings update (31 December 2017) and compare these latest figures against its performance over the past few years, along with how the rest of ESENSE's industry performed. … For Enersense International Oy, its latest trailing-twelve-month earnings is €995.41K, which, in comparison to the previous year's level, has plunged by a non-trivial -65.91%. … Since these figures are somewhat myopic, I have determined an annualized five-year figure for Enersense International Oy's earnings, which stands at €1.58M This doesn’t seem to paint a better picture, since earnings seem to have gradually been falling over time.
Enersense International Oyj provides recruitment and resource management services for various industrial projects in Finland. The company offers administrative and consultancy, project management, occupational safety, quality assurance, information management, and resources and subcontracting services. It also develops individual digital solutions in the areas of mobile services, the Internet of Things, cloud services, and system integration assistance. The company was founded in 2005 and is headquartered in Pori, Finland.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.