Discounted Cash Flow Calculation for NasdaqCM:EXPC using Excess Returns Model Model
The calculations below outline how an intrinsic value for Experience Investment 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
Experience Investment'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 Experience Investment 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 Experience Investment's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Experience Investment's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare Experience Investment's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if Experience Investment is high growth as no earnings estimate data is available.
Unable to determine if Experience Investment 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.
Experience Investment'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
1/6, 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
Experience Investment's finances.
The net worth of a company is the difference between its assets and liabilities.
Experience Investment is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Experience Investment's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Experience Investment'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.
Experience Investment has no debt, it does not need to be covered by short term assets.
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. Eric L. Affeldt has been Chief Executive Officer of Experience Investment Corp. since May 24, 2019 and has been its Chairman since September 2019. Mr. Affeldt served as Chief Executive Officer of ClubCorp Holdings, Inc. since December 2006 until 2017. Mr. Affeldt served as Chief Executive Officer at ClubCorp Club Operations, Inc., since December 2006 and its President since November 1, 2006 until 2016. He was the Chief Executive Officer of ClubCorp, Inc. since November 1, 2006 until 2017 and served as its President from 2006 to 2016. He served as the President at ClubCorp Holdings, Inc. from December 2006 to July 14, 2016. He served as Principal of KSL Capital Partners, LLC. He served as the Chief Operating Officer of ClubCorp, Inc. He served as the Chief Operating Officer at ClubCorp Club Operations, Inc., since November 1, 2006. He served as a Vice President and General Manager of Ksl Hotel Corporation. He served as Vice President of KSL La Quinta Corporation at KSL Recreation Corporation since January 1999. Mr. Affeldt served as President of KSL Hotel Corp. He served as the President and Chief Executive Officer of KSL Fairways Golf Corporation from January 1995 to June 1998. He was the Managing General Partner of The Fairways Group, L.P. He joined KSL in July 1992 as Director of Finance. He served as Vice President of Acquisitions of The Fairways Group and as its President since July 1995. He owned and operated Vail Financial Planning. He was Founding Partner of KSL Recreation since 1992 and served in a number of positions including General Manager of both Doral and La Quinta/PGA West. Mr. Affeldt served at KSL Recreation until 2000 and joined UBS Financial Services, Inc. He served as Vice President and General Manager of Doral Golf Resort and Spa in Miami and the combined PGA West and La Quinta Resort and Club in California from June 1998 to June 2000. In addition, he was President of General Aviation Holdings, Inc January 2000 to March 2005. He was a Director of ClubCorp, Inc. from 2006 to 2017. He served as Non-Executive Chairman of Cedar Fair Management, Inc., general partner of Cedar Fair, L.P from 2012 through 2017 and served as its Director since 2010 until June 5, 2019. He has been a Director at ClubCorp Holdings, Inc. and ClubCorp Club Operations, Inc., since 2006. He served as a Member of the Board of Managers at Avendra, LLC. Mr. Affeldt is a Member of the Young President' Organization and serves on the Boards of First Rate Investment Systems. In 2015, 2014 and 2010, he was named the most powerful person in golf by Golf Inc. In 2015 he was named to the Institutional Investor All America Executive Team in the “Best CEO” Consumer-Leisure sector. He is a national vice president of the Muscular Dystrophy Association and a member of the World President' Organization. Mr. Affeldt is a member of the World Presidents Organization. In 2013, Mr. Affeldt was awarded the Cecil B. Day Ethics Award by the Dedman School of Hospitality at Florida State University. He holds a B.A. in Political Science and Religion from Claremont McKenna College.
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 of the
management team in years:
The average tenure for the Experience Investment management team is less than 2 years, this suggests a new team.
Chairman & CEO
CFO & Treasurer
Chief Investment Officer & Secretary
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Experience Investment board of directors is less than 3 years, this suggests a new board.
Board of Directors
Chairman & CEO
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Experience Investment Corp. does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or other similar business combination with one or more operating businesses. The company was founded in 2019 and is based in Denver, Colorado.
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.