Discounted Cash Flow Calculation for TSEC:2425 using Dividend Discount Model Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future dividends to their present value. This
approach is used for finance firms where free cash flow is difficult to estimate
(e.g. Banks/ Insurance firms).
If the firm does not pay the majority of its earnings out as a dividend this
method will often arrive at a value significantly lower than the share price.
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
Chaintech Technology'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 Chaintech Technology 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 Tech industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Chaintech Technology's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Chaintech Technology's earnings growth to the Taiwan, Province of China market average as no estimate data is available.
Unable to compare Chaintech Technology's revenue growth to the Taiwan, Province of China market average as no estimate data is available.
Unable to determine if Chaintech Technology is high growth as no earnings estimate data is available.
Unable to determine if Chaintech Technology 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.
Chaintech Technology'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
Chaintech Technology's finances.
The net worth of a company is the difference between its assets and liabilities.
Chaintech Technology is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Chaintech Technology's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Chaintech Technology'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.
Low level of unsold assets.
Debt is covered by short term assets, assets are 12.6x 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.
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. Shu-Jung Kao is Chairman of Chaintech Technology Corporation and serves as its Acting General Manager since July 31, 2013. Mr. Kao is a Director of Chaintech Technology Corporation since January 18, 2012. He is Chairman of Bahamas Shanghai Commonwealth. He studied at Department of Electronic Engineering, National Chin-Yi University of Technology. He served as General Manager of AI-EN Thailand domestic businesses, Deputy General Manager of Beijing Kunru Computers, General Manager of Chih-Jung Information and Chief Representative of ELSA Technology Inc.
Insufficient data for Shu-Jung to compare compensation growth.
Shu-Jung's remuneration is about average for 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 Chaintech Technology management team is over 5 years, this suggests they are a seasoned and experienced team.
Chairman & Acting GM
Financial & Accounting Manager
Assistant Manager of Marketing & Planning Department
Board of Directors Tenure
Average tenure of the
board of directors in years:
The tenure for the Chaintech Technology board of directors is about average.
Board of Directors
Chairman & Acting GM
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Chaintech Technology Corporation operates in the mainboard and graphics card markets in Taiwan and China. The company provides graphics cards for NVIDIA and AMD chips; mainboards based on Intel and AMD chipsets; cases and power supplies under the Segotep brand; and tablets under the Colorfly brand. It also engages in the research and development, manufacture, and trading of electronic products, computer hardware, peripheral devices, display cards, and motherboards, as well as general investment business. The company offers its products and services through online distributors and e-commerce platforms, as well as through traditional channels. The company was formerly known as Walton Chaintech Corporation and changed its name to Chaintech Technology Corporation in 2013. Chaintech Technology Corporation was founded in 1986 and is headquartered in New Taipei City, Taiwan.
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