Discounted Cash Flow Calculation for NasdaqCM:HHHH.U using Excess Returns Model Model
The calculations below outline how an intrinsic value for Wealthbridge 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
Wealthbridge 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 Wealthbridge 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 Wealthbridge Acquisition's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Wealthbridge Acquisition's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare Wealthbridge Acquisition's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if Wealthbridge Acquisition is high growth as no earnings estimate data is available.
Unable to determine if Wealthbridge 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.
Wealthbridge 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.
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
Wealthbridge Acquisition's finances.
The net worth of a company is the difference between its assets and liabilities.
Wealthbridge Acquisition's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Wealthbridge Acquisition's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Wealthbridge Acquisition'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 not covered by short term assets, assets are 0x 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. Yongsheng Liu has been the Chief Executive Officer and Chairman of Wealthbridge Acquisition Ltd. since May 2, 2018. Mr. Liu served as Chief Executive Officer and Executive Director of LC Group Holdings Limited from March 28, 2017 to April 10, 2018 and served as Chairman since March 28, 2017 until July 6, 2017. Mr. Liu has over 25 years of experience in the aviation industry and has held managerial positions in a number of aviation companies. He was the Vice-Precedent of Joy Air Holdings Limited, which is a member of Aviation Industry Corporation of China from January 2013 to March 2017, being responsible for strategic planning, capital operation and aviation business operation. Mr. Liu also served as Chief Strategy Officer of United Eagle Airlines (subsequently renamed to Chengdu Airlines). From December 1994 to June 2000, Mr. Liu was a manager of China Southern Airlines responsible for ground staff training. Mr. Liu received a Bachelor's Degree in Engineering from Civil Aviation College of China (currently known as Civil Aviation University of China) in 1992 majoring in thermal power machinery and equipment and a Master of Science Degree in systems science from University of Ottawa in 2003. Mr. Liu is a candidate of Doctor of Philosophy in Economics of Concordia University.
Insufficient data for Yongsheng to compare compensation growth.
Insufficient data for Yongsheng 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 average tenure for the Wealthbridge Acquisition management team is less than 2 years, this suggests a new team.
Chairman & CEO
Chief Financial Officer
Ray Lei Chen
Chief Operating Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Wealthbridge Acquisition 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.
Wealthbridge Acquisition Limited does not have significant operations. It intends to enter into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization, or business combination, with one or more target businesses. The company focuses on operating businesses in and around the air transportation and aviation industry in China. Wealthbridge Acquisition Limited was founded in 2018 and is based in Wanchai, Hong Kong.
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.