Discounted Cash Flow Calculation for NasdaqCM:WRLS.U using Excess Returns Model Model
The calculations below outline how an intrinsic value for Pensare 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.
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Pensare Acquisition's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Pensare Acquisition's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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
Pensare 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 Pensare 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 Pensare Acquisition's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Pensare Acquisition's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare Pensare Acquisition's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if Pensare Acquisition is high growth as no earnings estimate data is available.
Unable to determine if Pensare 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.
Pensare 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
Pensare Acquisition's finances.
The net worth of a company is the difference between its assets and liabilities.
Pensare Acquisition's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Pensare Acquisition has no long term commitments.
This treemap shows a more detailed breakdown of
Pensare 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.
Pensare Acquisition has negative shareholder equity (liabilities exceed assets) therefore debt is not 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.
Mr. Darrell J. Mays serves as the Chief Executive Officer of Pensare Acquisition Corp. Mr. Mays is a Co-Owner of Pensare Sponsor Group, LLC. Mr. Mays serves as Senior Advisor of MasTec Network Solutions Inc. Mr. Mays serves as Senior Advisor at MasTec Inc. and served as its the Group President of Wireless since August 2008. Mr. Mays served as the President of MasTec Network Solutions Inc. (alternate name: Nsoro, LLC). He was the Founder and Chief Executive Officer of nsoro from 2003 to 2008, which was acquired by MasTec in July 2008. Mr. Mays has served as an Executive of MasTec since 2008. Mr. Mays began nsoro, LLC in 2003 as a Turnkey Service Company focusing on Telecom Operators (Wireless and Wireline) and Government Civil and IT Solutions. Mr. Mays served as Vice President/General Manager, Wireless Products of PalmSource since 2002. He served as Head the BellSouth Account at Ericsson Inc. in the Southeastern region of the US since 1997 and served as a Sales Manager for a major account in the Southeastern region of the US. He served as Services Director and Vice President of Business Development at large Global Accounts. Since June 2001, he served as Head of the AT&T Global Account team with Motorola. He served as Vice President of Global Accounts of Motorola since 2000. He worked for AT&T, beginning in 1985. Since 1987, he served as an Access Charges Auditing Manager of Financial Operation Center. He held various positions in the Network Operations, Engineering, Marketing and Sales organizations. In 1993, he moved to the engineering organization where he directed the program, managed operations network enhancements including wireless network build outs. Mr. Mays holds a Bachelor of Arts degree in Business from Georgia State University.
Insufficient data for Darrell to compare compensation growth.
Insufficient data for Darrell to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
CEO & Director
Chief Financial Officer
Chief Operating Officer
Chief Strategy Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Pensare Acquisition board of directors is less than 3 years, this suggests a new board.
Board of Directors
Independent Chairman of the Board
CEO & Director
Special Advisor to the Board
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Pensare Acquisition Corp. does not have significant operations. It intends to enter into a merger, stock exchange, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combination with one or more businesses or entities in the United States. It plans to focus on businesses in the wireless telecommunications industry. The company was founded in 2016 and is based in Atlanta, Georgia. Pensare Acquisition Corp. operates as a subsidiary of Pensare Sponsor Group, LLC.
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