Discounted Cash Flow Calculation for GTSM:3147 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:3147 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.
Jetwell Computer's share price is below the future cash flow value, and at a moderate discount (> 20%).
Jetwell Computer'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
Jetwell Computer'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 Jetwell Computer 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 IT industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Jetwell Computer's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Jetwell Computer's earnings growth to the Taiwan, Province of China market average as no estimate data is available.
Unable to compare Jetwell Computer's revenue growth to the Taiwan, Province of China market average as no estimate data is available.
Unable to determine if Jetwell Computer is high growth as no earnings estimate data is available.
Unable to determine if Jetwell Computer 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.
Jetwell Computer'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
Jetwell Computer's finances.
The net worth of a company is the difference between its assets and liabilities.
Jetwell Computer is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Jetwell Computer's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Jetwell Computer'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 5.6x 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.
Jetwell Computer Co., Ltd. provides IT infrastructure and integration services in Taiwan. The company offers computer system products, including servers, workstations, notebooks, pads, and printer systems; and storage and big data integration services, as well as designs, builds, integrates, and sells thin client systems. It also provides network products, such as firewall and intrusion detection systems, building green IDC, switch hubs, routers, network interface cards, and wireless network products, as well as international system management and planning and digital surveillance systems. In addition, the company offers security software, file and database audit software, anti-virus, anti-hacker, SPAM, VM ware, and back-up software; building private cloud; and BYOD solutions, as well as integrates and sells encrypting file system and file management software. Further, it provides various professional services comprising maintenance contract, on-site maintenance, IT consultation, project management, and cloud rental and security services. Jetwell Computer Co., Ltd. was founded in 1991 and is headquartered in Kaohsiung, Taiwan.
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