Discounted Cash Flow Calculation for NasdaqCM:HCCH using Excess Returns Model Model
The calculations below outline how an intrinsic value for HL Acquisition 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
HL Acquisition'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 HL Acquisition 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 HL Acquisition's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare HL Acquisition's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare HL Acquisition's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if HL Acquisition is high growth as no earnings estimate data is available.
Unable to determine if HL Acquisition 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.
HL Acquisition'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.
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. Jeffrey Evan Schwarz has been Chief Executive Officer of HL Acquisition Corp. since February 23, 2018 and also serves as its Chairman of the Board. Mr. Schwarz is Co-Founder of Metropolitan Capital Select, LLC since 1992. Mr. Schwarz serves as Independent Non-Executive Director at Aurora Dividend Income Trust. Mr. Schwarz is Co-Founder since 1992 at Metropolitan Capital Advisors, Inc. and was previously the Chief Investment Officer. Prior to this, Mr. Schwarz was the Founder and served as President at Metropolitan Capital Group, Inc. from 1990 to 1992. Previously, from 1987 to 1990, Mr. Schwarz was a Managing Partner of an advisory firm associated with First City Capital. Prior to this, from 1981 to 1983, he was an Analyst and from 1983 to 1986 as Partner at Kellner, DiLeo & Co. Mr. Schwarz has been a Non-Executive Co-Chairman of the Board of Directors of Bogen Communications International Inc. since 1997. He served as Chairman at Molopo Australia Ltd. From September 24, 2013 to December 29, 2014 and served as its Director from March 18, 2013 to December 29, 2014. He served as the Chairman of the Board at Molopo Energy Limited until December 29, 2014. He served as Director of LivaNova PLC since January 29, 2007 until September 2008. Mr. Schwarz is a Member of the Board of Overseers of the Graduate School of Education at the University of Pennsylvania. Previously, he was a Member of the Board of Directors of Cyberonics Inc. Mr. Schwarz holds an M.B.A. with a concentration in Finance and graduated Summa Cum Laude with a B.S. in Economics with a concentration in Accounting from the University of Pennsylvania’s Wharton School.
Insufficient data for Jeffrey to compare compensation growth.
Insufficient data for Jeffrey to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Chairman of the Board & CEO
Chief Financial Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the HL Acquisition board of directors is less than 3 years, this suggests a new board.
Board of Directors
Chairman of the Board & CEO
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
HL Acquisition Corp. does not have significant operations. It intends to acquire, engage in a share exchange, share reconstruction and amalgamation with, purchase all or substantially all of the assets of, enter into contractual arrangements with, or engage in any other similar business combination with one or more businesses or entities. The company was founded in 2018 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.