Discounted Cash Flow Calculation for NasdaqCM:MNCL.U using Excess Returns Model Model
The calculations below outline how an intrinsic value for Monocle 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
Monocle 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 Monocle 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 Monocle Acquisition's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Monocle Acquisition's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare Monocle Acquisition's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if Monocle Acquisition is high growth as no earnings estimate data is available.
Unable to determine if Monocle 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.
Monocle 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
Monocle Acquisition's finances.
The net worth of a company is the difference between its assets and liabilities.
Monocle Acquisition is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Monocle Acquisition's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Monocle 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.
Monocle Acquisition 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 J. Zahler has been the President, Chief Executive Officer and Director of Monocle Acquisition Corporation since August 20, 2018. He serves as the Chairman of The Board of Route Dynamics Corp. Mr. Zahler serves was the Managing Director at Sagamore Capital Group LLC. He serves as an Executive Vice President of Loral CyberStar, Inc. He served as the Vice President and General Counsel of Lockheed Martin Tactical Systems, Inc. since April 1992. He served as the President and Chief Operating Officer of Loral Space & Communications Inc. from February 2000 to November 2007 and also served as its Executive Vice President since October 1999, Senior Vice President since February 1998, Vice President, General Counsel and Secretary since 1996. He was responsible for overseeing Loral Space & Communications Ltd.'s two businesses: Loral Skynet and Space Systems/Loral. From 1992 to 2000, he held varying senior level management positions at Loral and its predecessor companies. He led a reengineering of Lockheed Martin Tactical Systems, Inc.'s operations, productivity, market share and revenue growth. As a Senior Member of the Management of Lockheed Martin Tactical Systems, Inc. since 1992. He served as an Executive Vice President of Loral Skynet Corporation (Also known as Orion Network Systems, Inc. and Loral Orion Inc.) since February 2000 and also served as its Senior Vice President since April 1999, Vice President and Secretary since March 1998. From 1975 to 1992, he was an Attorney at Fried, Frank, Harris, Shriver & Jacobson, where he was elected Partner in 1983. He represented defense and aerospace contractors in all aspects of their interactions with the United States government. He serves as the Chairman of the Board of SSC Space U.S. Inc. He served as a Member of General Partners Committee of Globalstar, Inc. since 2000 and served as the Vice Chairman until March 8, 2001. He served as Vice Chairman and Director at Globalstar Telecommunications Ltd. He serves as a Director of SSL MDA Holdings, Inc. and Loral CyberStar, Inc. He has been a Director of MDA Corporation since 2014. He has been a Non-Executive Director of exactEarth Ltd. since February 4, 2016 and has been its Chairman since 2016. He has been a Director of Loral Skynet Corporation since March 1998. He also served as a Director of Satélites Mexicanos S.A de C.V. from November 1997 to March 2006. He has been an Independent Director of MacDonald, Dettwiler and Associates Ltd. (now Maxar Technologies Ltd.) since May 1, 2014. He served as an Independent Director of Easylink Services Corporation since February 8, 2005. He served as Director of Satelites Mexicanos S.A. de C.V. from November 1997 to March 2006 and Actel Corporation since March 18, 2009. He served as a Director of Loral Space & Communications Inc. since 2001. He served on Lockheed Martin Tactical Systems, Inc.'s Board of Directors. Mr. Zahler graduated, cum laude, with Law Degree/JD from Harvard Law School in 1975, where he was an Editor of the Harvard Journal on Legislation. He holds a B.S. degree, cum laude, in Mathematics from Yale University in 1972.
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.
Executive VP & CFO
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Monocle Acquisition board of directors is less than 3 years, this suggests a new board.
Board of Directors
Chairman of the Board
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Monocle Acquisition Corporation does not significant operations. The company focuses on effecting a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization, or similar business combination with one or more businesses. It intends to focus on businesses in the aerospace and defense, industrial, and technology and telecommunication sectors. 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.