Discounted Cash Flow Calculation for GTSM:6472 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:6472 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.
Bora Pharmaceuticals's share price is below the future cash flow value, and at a moderate discount (> 20%).
Bora Pharmaceuticals'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
Bora Pharmaceuticals's earnings available for a low price, and how does
this compare to other companies in the same industry?
Bora Pharmaceuticals's earnings are expected to grow significantly at over 20% yearly.
Bora Pharmaceuticals's revenue is expected to grow significantly at over 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.
Bora Pharmaceuticals'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
4/6, 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
Bora Pharmaceuticals's finances.
The net worth of a company is the difference between its assets and liabilities.
Bora Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Bora Pharmaceuticals's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Bora Pharmaceuticals'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 2.4x 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.
Mr. Bobby Sheng is the Principle Founder, the Chairman and Chief Executive Officer of Bora Corporation and Bora Pharmaceuticals Inc. (alternate name, Bora Pharmaceuticals Co., Ltd.). Mr. Sheng is Founder of Earth 88 and serves as its Chief Executive Officer. He has one of the most impressive track records for identifying specific needs in the market and creating high quality products for the Asian market. He has experience in Pharmaceuticals, consumer products and media gives him a perspective on the market. He successfully launched many prestigious brands such as Hard Candy, PeterThomasRoth, Osmotics, Tweezerman and Kiehl’s in Taiwan and in 1997. His Key Achievements include: At Hoan Pharma, he successfully launched multiple pharmaceutical lines, including Lexapro, the marketing leading Anti-depressant in Taiwan. After investing in many successful years in the core pharmaceutical business, he ventured out to establish his own group of companies that focuses on bringing products and services from the Western Cultures to Taiwan and the rest of Asia. He serves as a Director of O-Bank Co., Ltd(also known as Industrial Bank of Taiwan). He was named one of Asia’s Top Businessmen by the International Luxury Brands group LVMH. He studied from University of California, Berkeley in the year 1990-1994.
Insufficient data for Bobby to compare compensation growth.
Insufficient data for Bobby to establish whether their remuneration is reasonable compared to companies of similar size in Taiwan, Province of China.
Chairman & CEO
Executive Director of Business Development
Board of Directors
Chairman & CEO
Guan Bai Chen
Shang Hong Shen
Xiao Tai He
Xin Yi Lai
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Bora Pharmaceuticals Co., LTD. engages in the research, development, production, marketing, sale, and distribution of pharmaceutical products. The company provides antidepressant, antipsychotic, dementia, sedative, antihypertensive, atherosclerosis, hypoglycemic drugs, antacids, ophthalmic agents, antiparkinsonism agents, antibiotics agents, and osteoarthritis drugs; health supplements, such as BOOST; and skin care products, including Eisai-SAHNE and Eisai-Aloe. It also offers market analysis, registration, regulatory affairs, pricing, GDP warehousing, distribution, and market access, as well as marketing and sales services to multinational pharmaceutical, over-the-counter, and consumer healthcare companies. The company’s sales and distribution network comprises hospitals, clinics, pharmacies, CVS, and specialty channels. It also exports its products to approximately 17 countries worldwide. The company was founded in 2007 and is based in Taipei City, Taiwan.
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