Discounted Cash Flow Calculation for NasdaqCM:ALGR using Excess Returns Model Model
The calculations below outline how an intrinsic value for Allegro Merger is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
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
Allegro Merger'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 Allegro Merger 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 Capital Markets industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Allegro Merger's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Allegro Merger's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare Allegro Merger's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if Allegro Merger is high growth as no earnings estimate data is available.
Unable to determine if Allegro Merger 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.
Allegro Merger'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.
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. Eric S. Rosenfeld has been Chief Executive Officer of Allegro Merger Corp. since August 7, 2017. Mr. Rosenfeld has been President and Chief Executive Officer of Crescendo Partners, L.P., since its formation in November 1998. Mr. Rosenfeld joined Absolute Software Corporation served as a Director in December 2012 until December 11, 2019. He was Non-Executive Chairman of CPI Aerostructures Inc. from January 2005 to November 2018 and has been its Chairman Emeritus since November 2018. Prior to forming Crescendo Partners, he held the position of Managing Director at CIBC Oppenheimer and its predecessor company Oppenheimer & Co., Inc. for 14 years. Mr. Rosenfeld has been a Director for CPI Aerostructures Inc. since 2003. He also serves as Chairman of Absolute Software Corp. He served as Chairman and Chief Executive Officer of Quartet Merger Corp. Mr. Rosenfeld has been a Director of Aecon Group Inc. since 2017 and NextDecade Corp. He served as Chairman of the Board at Allegro Merger Corp. since August 7, 2017 until April 2018. He serves as Lead Independent Director for Cott Corporation. Mr. Rosenfeld has also served as Chairman and Chief Executive Officer for Arpeggio Acquisition Corporation, Rhapsody Merger Corp., Trio Merger Corp, Quartet Merger Corp and Harmony Merger Corp., all blank check corporations that later merged with Hill International, Primoris Services Corporation and SAExploration Holdings, and NextDecade Corp. respectively. He serves as a Director of Pangaea Logistics Solutions Ltd. He has also served as a director for numerous companies, including Sierra Systems Group Inc., Emergis Inc., Hill International, Matrikon Inc., DALSA Corp., HIP Interactive, GEAC Computer, SPAR Aerospace, Computer Horizons Corp. (Chairman), Primoris Services Corporation, and SAExploration Holdings.
Insufficient data for Eric to compare compensation growth.
Insufficient data for Eric to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Allegro Merger management team is about average.
Chairman of the Board & COO
Chief Executive Officer
Chief Financial Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Allegro Merger board of directors is less than 3 years, this suggests a new board.
Board of Directors
Chairman of the Board & COO
Leonard B. Schlemm
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
How Much Of Allegro Merger Corp. (NASDAQ:ALGR) Do Insiders Own?
As Charlie Munger said 'Show me the incentive and I will show you the outcome.' Allegro Merger is a smaller company with a market capitalization of US$193m, so it may still be flying under the radar of many institutional investors. … View our latest analysis for Allegro Merger NasdaqCM:ALGR Ownership Summary, August 20th 2019 What Does The Institutional Ownership Tell Us About Allegro Merger? … We can see that Allegro Merger does have institutional investors; and they hold 59% of the stock.
Allegro Merger Corp. does not have significant operations. It intends to acquire a business through merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combination. The company was founded in 2017 and is based in New York, New York.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.