Discounted Cash Flow Calculation for GTSM:2928 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:2928 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.
Redhorse GroupLtd's share price is below the future cash flow value, and at a moderate discount (> 20%).
Redhorse GroupLtd'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
Redhorse GroupLtd's earnings available for a low price, and how does
this compare to other companies in the same industry?
Unable to determine if Redhorse GroupLtd is high growth as no earnings estimate data is available.
Unable to determine if Redhorse GroupLtd 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.
Redhorse GroupLtd'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
2/6, 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
Redhorse GroupLtd's finances.
The net worth of a company is the difference between its assets and liabilities.
Redhorse GroupLtd is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Redhorse GroupLtd's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Redhorse GroupLtd'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 2.1x 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. Taiho Shu serves as Chairman at Redhorse Group Co., Ltd. since June 6, 2014 and serves as its President. He has been Chief Executive Officer of Redhorse Group Co.Ltd. since March 2020. He served as General Manager of Redhorse Group Co., Ltd. He serves as the Chairman and Chief Executive Officer of RH Traveler Corporation. Mr. Shu served as the Chief Executive Officer and Chairman of Redhorse Holdings Limited and RH Insigno Co., Ltd. He serves as General Manager at Redhorse Corporation since December 27, 2018. He served as President of Taevion Trust Co., Ltd. He served as Group Chief Executive Officer and Representative Director of Redhorse Co., Ltd. He has been Chairman of the Board of Directors at Redhorse Corporation since June 6, 2014 and its Director since June 8, 2011. He served as the Chairman of the Board of Directors for Redhorse Co., Limited. He has been a Director of Redhorse Group Co.Ltd. since June 8, 2011. He serves as a Director for Taeivon International Inc., Redhorse Holdings Limited, Naoko International Ltd., and Accel Holdings Limited. Mr. Shu served as a Representative Director of Redhorse Co., Ltd and Redhorse Associates Co., Ltd. He served as Director for Taeivon Food System Co., Ltd. He graduated from the Department of Law of Chuo University, Japan.
Insufficient data for Taiho to compare compensation growth.
Insufficient data for Taiho 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 tenure for the Redhorse GroupLtd management team is about average.
CFO & Financial Supervisor
Chief Operating Officer
Investor Relations Manager
Head of China and Taiwan Division
Board of Directors Tenure
Average tenure of the
board of directors in years:
The tenure for the Redhorse GroupLtd board of directors is about average.
Board of Directors
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Redhorse Group Co.Ltd. engages in the souvenir, e-commerce, and other businesses in Asia. The company sells travel goods, gifts, and local and overseas souvenirs, as well as food products through retail and online channels. It also engages in the duty free shop, wholesale, and retail store businesses. The company was formerly known as Redhorse Corporation and changed its name to Redhorse Group Co.Ltd. in August 2019. Redhorse Group Co.Ltd. was founded in 1964 and is based in Taipei, Taiwan.
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