Discounted Cash Flow Calculation for OM:TRG 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.
OM:TRG DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
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
Transcendent Group'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 Transcendent Group 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 Professional Services industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Transcendent Group's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Transcendent Group's earnings growth to the Sweden market average as no estimate data is available.
Unable to compare Transcendent Group's revenue growth to the Sweden market average as no estimate data is available.
Unable to determine if Transcendent Group is high growth as no earnings estimate data is available.
Unable to determine if Transcendent Group 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.
Transcendent 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.
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
Transcendent Group's finances.
The net worth of a company is the difference between its assets and liabilities.
Transcendent Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Transcendent Group's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Transcendent Group'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 2x 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. Martin Malm is Chief Executive Officer of Transcendent Group AB since 2016. Mr. Malm holds Master of Science in Computer and Systems Science at Stockholm University. He is a Director of Maquire AB.
Insufficient data for Martin to compare compensation growth.
Insufficient data for Martin to establish whether their remuneration is reasonable compared to companies of similar size in Sweden.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Transcendent Group management team is about average.
Chief Executive Officer
Chief Financial Officer
COO & Interim CEO of RegTech
Chief HR Officer & Chief Marketing Officer
Head of New Markets
Chief Executive Officer of Transcendent Group Stockholm AB
Chief Executive Officer of Transcendent Group Finland Oy
Chief Executive Officer of Transcendent Group Norge AS
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Transcendent Group board of directors is less than 3 years, this suggests a new board.
Board of Directors
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Transcendent Group AB (publ) engages in the management consulting business in Sweden and internationally. Its services include compliance, corporate governance, digital governance, information security, IT audit, internal audit, privacy, and financial risk. The company serves clients in the public and private sectors, including government agencies, businesses, and other organizations in a variety of industries. Transcendent Group AB (publ) was founded in 2001 and is based in Stockholm, Sweden.
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.