Discounted Cash Flow Calculation for GTSM:6290 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.
GTSM:6290 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.
Longwell's share price is below the future cash flow value, and at a moderate discount (> 20%).
Longwell'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
Longwell'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 Longwell 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 Electrical industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Longwell's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Longwell's earnings growth to the Taiwan, Province of China market average as no estimate data is available.
Unable to compare Longwell's revenue growth to the Taiwan, Province of China market average as no estimate data is available.
Unable to determine if Longwell is high growth as no earnings estimate data is available.
Unable to determine if Longwell 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.
Longwell'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
6/6, 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. C. T. Lee has been the President of Longwell Company since June 1, 1999 and served as its Chief Executive Officer. Mr. Lee served as the President of Formosa Plastics Corporation, U.S.A. He serves as Chairman of Longwell Technology (Suzhou) Co., Ltd and Supervisor of Linetek Electronic Co., Ltd. He serves as the Chairman at Longwell Company and has been its Director since June 19, 2009. Mr. Lee serves as Director of Longwell Japan Co., Ltd., Skilful Limited, GREAT GRAND GROUP LIMITED, Suzhou Longwell Electronics Co., Ltd., Feng Mao Investments Limited. Mr. Lee Studied from Lunghwa Junior College of Technology and Commerce.
Insufficient data for C. T. to compare compensation growth.
Insufficient data for C. T. to establish whether their remuneration is reasonable compared to companies of similar size in Taiwan, Province of China.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Longwell management team is over 5 years, this suggests they are a seasoned and experienced team.
C. T. Lee
Chairman & President
Director of Financial & Accounting Department
W. Y. Lin
Vice President of Sales
Vice President of Research & Development
Executive Assistant for Chairman
Board of Directors Tenure
Average tenure of the
board of directors in years:
The average tenure for the Longwell board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
C. T. Lee
Chairman & President
L. S. Chen
T. F. Hsieh
K. T. Chen
W. J. Huang
Y. F. Hsieh
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Longwell Company produces and sells electronic components and cable products worldwide. It offers power cords for various applications, such as computers, telecommunications, consumer electronics, and home appliances; and electronic wires and cables, insulation tubes, and heat-shrinkable tubes for use in computers, home appliances, telecommunications, and other electronics products. The company also provides cable assemblies for various market sectors, including computer, communication, and consumer electronic and networking industries; connectors primarily for mobile devices, computers, and GPS; wire, AC, and DC halogen free products; and USB output, desk top, car, and wireless chargers, as well as interchangeable plugs, AC and wall-mount adapters, EV charging units, and mechanical components and plastic parts. In addition, it offers a range of support services comprising product design, engineering, volume manufacturing, and logistics services to multinational and regional OEMs. The company was founded in 1972 and is headquartered in Taipei, Taiwan.
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