Discounted Cash Flow Calculation for AIM:TGP 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:TGP 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.
Tekmar Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
Tekmar 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
Tekmar Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
Tekmar Group's earnings are expected to grow by 19.4% yearly, however this is not considered high growth (20% yearly).
Tekmar Group's revenue is expected to grow by 17.1% 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.
Tekmar 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
3/6, 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.
Mr. James Thomas Ritchie-Bland serves as the Chief Executive Officer at Tekmar Energy Limited. Mr. Ritchie-Bland serves as the Chief Executive Officer and a Director at Tekmar Group PLC. He has 10 years’ experience as an executive manager and is one of the first and founding employees of Tekmar Energy. In 2009, he became Operations Director and led the business through substantial growth. He then subsequently led the management buy-out of Tekmar Energy in September 2011 with Elysian and Opera Finance. He is also a committee member of Subsea North East and Chairman of Energi Coast.
Insufficient data for James to compare compensation growth.
James's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
CEO & Director
CFO, Company Secretary & Director
Non-Executive Technical Director
Managing Director of Tekmar Energy
Head of Subsea Sales and Strategy
Board of Directors
Independent Non-Executive Chairman
CEO & Director
CFO, Company Secretary & Director
Senior Independent Non-Executive Director
Independent Non-Executive Director
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Those Who Purchased Tekmar Group (LON:TGP) Shares A Year Ago Have A 26% Loss To Show For It
Unfortunately the Tekmar Group plc (LON:TGP) share price slid 26% over twelve months. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Since we can't easily explain the share price movement based on these metrics, it might be worth considering how market sentiment has changed towards the stock.
Estimating The Fair Value Of Tekmar Group plc (LON:TGP)
Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (£, Millions) £4.0m £6.0m £6.0m £6.0m £6.1m £6.1m £6.2m £6.2m £6.3m Growth Rate Estimate Source Analyst x1 Analyst x1 Analyst x1 Est @ 0.37% Est @ 0.63% Est @ 0.81% Est @ 0.93% Est @ 1.02% Est @ 1.08% Present Value (£, Millions) Discounted @ 8.13% £3.4 £4.7 £4.4 £4.1 £3.8 £3.5 £3.3 £3.1 £2.9 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= £33.2m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … AIM:TGP Intrinsic value, July 1st 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.
Tekmar Group plc (LON:TGP): A Fundamentally Attractive Investment
By this I mean, I look at stocks holistically, from their financial health to their future outlook. … In the case of Tekmar Group plc (LON:TGP), it is a company with strong financial health as well as an optimistic growth outlook. … AIM:TGP Past and Future Earnings, May 31st 2019 Next Steps: For Tekmar Group, I've put together three key aspects you should further research: Historical Performance: What has TGP's returns been like over the past?
Why Tekmar Group plc (LON:TGP) Could Have A Place In Your Portfolio
I've been keeping an eye on Tekmar Group plc (LON:TGP) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe TGP has a lot to offer. … is a company with
Could Tekmar Group plc's (LON:TGP) Investor Composition Impacts Your Returns?
Every investor in Tekmar Group plc (LON:TGP) should be aware of the most powerful shareholder groups. … With a market capitalization of UK£83.0m, Tekmar Group is a small cap stock, so it might not be well known by many institutional investors. … Check out our latest analysis for Tekmar Group
Tekmar Group plc designs, develops, manufactures, installs, and sells subsea protection equipment to offshore energy markets. The company offers subsea cable, and umbilical and flexible pipe protection systems; and offshore engineering consulting services; and geotechnical design and consulting services, such as offshore structure foundation design, geohazard assessment, and subsea cable routing and burial assessment. It also designs, manufactures, and supplies equipment handling systems, emergency pipeline repair clamps, and equipment for use in the construction of offshore energy projects. The company was incorporated in 2018 and is headquartered in Newton Aycliffe, the United Kingdom.
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