Discounted Cash Flow Calculation for NasdaqCM:GMHI.U using Excess Returns Model Model
The calculations below outline how an intrinsic value for Gores Metropoulos 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
Gores Metropoulos'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 Gores Metropoulos 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 Gores Metropoulos's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Gores Metropoulos's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare Gores Metropoulos's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if Gores Metropoulos is high growth as no earnings estimate data is available.
Unable to determine if Gores Metropoulos 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.
Gores Metropoulos'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
0/6, 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
Gores Metropoulos's finances.
The net worth of a company is the difference between its assets and liabilities.
Gores Metropoulos is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Gores Metropoulos's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Gores Metropoulos'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.
Gores Metropoulos 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. Alec Elias Gores serves as Founder, Chairman and Chief Executive Officer at Gores Group, LLC. Mr. Gores is the Chief Executive Officer and Director of Gores Metropoulos, Inc. since August 2018. He founded The Gores Group LLC in 1987. Mr. Gores oversees investment activities and the investment portfolio. Under his leadership, Gores Group is continuing to implement that successful strategy by acquiring businesses with enterprise values in the $200 million to $3 billion range, focusing on creating value and working with management to create an entrepreneurial environment as a foundation for sustainable growth. Under Mr. Gores' guidance, Gores Group has successfully acquired more than 100 businesses including a current portfolio of more than 20 active companies worldwide having combined annual revenues in the billions of dollars. He specializes in industries namely Technology, industrial, health care and business services. He served as the Managing Member of GTG PC Investments L.L.C. He self-funded and founded Executive Business Systems (EBS) in 1978, which was acquired by CONTEL in 1986. Mr. Gores subsequently began acquiring and operating under-valued and under-performing non-core businesses from major corporations and building value in those entities. Mr. Gores worked as a Computer Programmer at General Motors. He began his career as an entrepreneur and an Operating Executive. He has been Chairman of Gores Holdings III, Inc. since October 2017 and serves as its Director. He has been Chairman of Gores Holdings II, Inc. since August 2016 and also serves as its Director. He serves as Chairman of the Board at Gores Capital Partners III, L.P. He served as the Chairman and Director of Gores Holdings, Inc. (now Hostess Brands, Inc) from June 2015 to November 3, 2016. He also served as the Chairman of the Board of Directors of Gores Holdings I from its inception from June 2015 until completion of the Hostess acquisition in November 2016. Mr. Gores served as a Director of Dovre Group Plc from August 21, 2000 to August 2005. He served as a Director of Proha Plc since August 2000. He served as a Director of Artemis International Solutions Corporation (formerly Opus360 Corp.) since July 31, 2001. Mr. Gores served as a Director of Executive Business Systems from 1978 to 1986. He serves as Chairman of the Board at Gores Holdings IV, Inc. since June 2019. He has done a B.S. in Computer Science from Western Michigan University.
Insufficient data for Alec to compare compensation growth.
Insufficient data for Alec to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
CEO & Director
CFO & Secretary
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Gores Metropoulos board of directors is less than 3 years, this suggests a new board.
Board of Directors
Chairman of the board
CEO & Director
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Gores Metropoulos, Inc. does not have signification operations. It intends to acquire assets and businesses through a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or business combination. The company was founded in 2018 and is headquartered in Beverly Hills, California.
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