Discounted Cash Flow Calculation for AIM:INCE 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.
AIM:INCE 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.
Ince Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
Ince Group'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
Ince Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
Unable to determine if Ince Group is high growth as no earnings estimate data is available.
Ince Group's revenue is expected to grow by 8.7% 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.
Ince Group'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
0/6, 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. Adrian J. Biles, LLB, is the Co-Owner of Penlee Holdings Limited. Mr. Biles has been Chief Executive Officer and Managing Partner at Gordon Dadds Group Limited since August 4, 2017. He served as Managing Director at Gordon Dadds Group Limited (formerly, Culver Holdings Limited) since January 19, 2017. Mr. Biles serves as Chief Executive Officer at Brook Street Holdings LLP. He served as Chief Executive Officer of Gordon Dadds Group Limited. He founded ACR Solicitors LLP in 2007 and was responsible for merging the original legal practice of Gordon Dadds into Gordon Dadds LLP in 2013 when he became managing partner and has since overseen the expansion of Gordon Dadds by a combination of acquisitions and organic growth from a £2.7 million turnover business in 2013 to a £25 million turnover business in 2017. He served as Secretary of Gordon Dadds Group Limited. He spent three years with Theodore Goddard. He qualified as a solicitor at a large City law firm in the early 1990s. He left to go into business in 1994, since when he has been involved in private equity transactions across a number of business sectors, including insurance broking and underwriting, retail motor distribution and property development. He serves as a Director of Gordon Brook Street Holdings LLP. Mr. Biles served as Director of Gordon Dadds Group Limited. He has been Director of Gordon Dadds Group plc since September 19, 2017.
Adrian's compensation has increased whilst company is loss making.
Adrian's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
CEO, Managing Partner & Director
CFO & Director
Global Head of Consulting
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Ince Group board of directors is less than 3 years, this suggests a new board.
Board of Directors
Independent Chairman of the Board
CEO, Managing Partner & Director
Who owns this company?
Recent Insider Trading
More shares have been bought than sold by Ince Group individual insiders in the past 3 months.
The Ince Group plc provides legal services to businesses and high net worth individuals in the United Kingdom and Asia. The company provides law practices; corporate tax consultancy to the oil and gas industry; technology solutions for the legal and professional services market; business consulting, resource augmentation, and managed services; and investment advice and ongoing investment management services. It also acts as consulting actuaries, employee benefit advisers, pension scheme administrators, general practice solicitors, a conveyancing firm, and a law firm. The company was formerly known as Gordon Dadds Group plc and changed its name to The Ince Group plc in August 2019. The Ince Group plc was incorporated in 1999 and is based in London, the United Kingdom.
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