Discounted Cash Flow Calculation for JASDAQ:1418 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.
JASDAQ:1418 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.
Interlife Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
Interlife Holdings'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
Interlife Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Interlife Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Commercial Services industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Interlife Holdings's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Interlife Holdings's earnings growth to the Japan market average as no estimate data is available.
Unable to compare Interlife Holdings's revenue growth to the Japan market average as no estimate data is available.
Unable to determine if Interlife Holdings is high growth as no earnings estimate data is available.
Unable to determine if Interlife Holdings is high growth as no revenue estimate data is available.
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.
Interlife Holdings'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.
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
Interlife Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
Interlife Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Interlife Holdings's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Interlife Holdings'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 covered by short term assets, assets are 3.1x 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. Tamishi Oikawa has been the President of Interlife Holdings Co., Ltd. since May 2013. Mr. Oikawa served as an Adviser of Interlife Holdings Co., Ltd. since May 2013. Mr. Oikawa joined Mizuho Bank, Ltd.(formerly The Fuji Bank, Ltd) since April 1966 and served as its Manager of Sawa Branch since May 1990; Manager of Nakano Branch since January 1994 and Chief of Public Affairs Center since November 1996. Mr. Oikawa served at Mizuho Bank, Ltd until March 2000. Mr. Oikawa served as Senior Managing Director P Ark K.K. (P Ark Holdings Co., Ltd.); from June 1999 to March 2013. Mr. Oikawa has been Chairman Nissho Inter Life Co., Ltd; K.K. NIL Telecom ; Facility Management K.K. ; D-NA Net Work Co., Ltd and Ark Front, Inc. since 2013. Mr. Oikawa has been a Representative Director of Interlife Holdings Co., Ltd. since May 2013.
Insufficient data for Tamishi to compare compensation growth.
Insufficient data for Tamishi to establish whether their remuneration is reasonable compared to companies of similar size in Japan.
President & Representative Director
Senior Managing Director
Board of Directors
Senior Managing Director
President & Representative Director
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Interlife Holdings Co., Ltd., through its subsidiaries, provides in retail store design services in Japan. The company plans, designs, constructs, and produces spaces; maintains, cleans, and inspects various facilities; provides consulting on headhunting, manpower dispatching, and training/education of human resources; and maintains telecommunication environment. It is also involved in the promotional activities for stores; advertising and publicity, and sales promotion of stores; sale of mobile phones and smartphones; and planning, design, and installation of custom-designed acoustic, visual, and lighting equipment. The company was founded in 1974 and is headquartered in Tokyo, Japan.
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