Graf Industrial Corp. intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with industrial companies in diversified industrial manufacturing, technology, distribution, and service businesses in the United States and Canada.
The last earnings update was 326 days ago.
Discounted Cash Flow Calculation for NYSE:GRAF.U using Excess Returns Model Model
The calculations below outline how an intrinsic value for Graf Industrial 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
Graf Industrial'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 Graf Industrial 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 Graf Industrial's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Graf Industrial's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare Graf Industrial's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if Graf Industrial is high growth as no earnings estimate data is available.
Unable to determine if Graf Industrial 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.
Graf Industrial'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
2/6, 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. James A. Graf has been the Chief Executive Officer at Graf Industrial Corp. since June 2018 and served as Director since June 2018 until October 17, 2019. He serves as Co-Founder and Chief Executive Officer at Mergent Data Technology, Inc. He is the Co-Owner at Graf Acquisition LLC. He had been a Director of Platinum Eagle Acquisition since January 11, 2018. Mr. Graf served as Chief Financial Officer, Vice President and Treasurer at Double Eagle Acquisition Corp. since July 1, 2015 until November 2017 and its Principal Accounting Officer. Mr. Graf has been Special Advisor to Global Eagle Entertainment Inc. since 2013. He has been a Special Advisor to Videocon d2h Limited since April 2015. He served as a special advisor to VDTH from 2015 to 2016. Mr. Graf serves as Chief Executive of PSI Capital Inc. Mr. Graf served as the Chief Financial Officer, Vice President, Treasurer and Secretary of Silver Eagle Acquisition Corp. since April 11, 2013 and served as its Principal Accounting Officer. He served as the Chief Financial Officer, Vice President, Treasurer and Secretary of Global Eagle Acquisition Corp. since its inception on February 2, 2011 until January 2013 and served as its Principal Accounting Officer. He served as General Manager of Global Eagle Entertainment Inc. Since late 2008, Mr. Graf served as a Managing Director of TC Capital Pte. Ltd. From 2007 to 2008, he was engaged as a Consultant to provide Financial Advisory Services to Metro-Goldwyn-Mayer, Inc. In 2001, he founded and served as Chief Executive Officer of Praedea Solutions, Inc. from 2006 to 2007. Prior to founding Praedea, Mr. Graf served as Managing Director at Merrill Lynch from 1998 to 2000 and a Consultant to Merrill Lynch in 2001. From 1996 to 1998, he served as Managing Director and President of Deutsche Bank’s investment banking entity in Hong Kong, Deutsche Morgan Grenfell (Hong Kong) Ltd. From 1993 to 1996, he served as Vice President at Smith Barney in Hong Kong and Los Angeles. From 1987 to 1993, Mr. Graf served as an Analyst and Associate at Morgan Stanley in New York, Los Angeles and Hong Kong. He was Vice Chairman of Global Entertainment AG, the German entity holding GEE’s equity in AIA from 2013 to 2014. Since April 2013, Mr. Graf has been a Director of Mark Sutherland Media LLC (d/b/a Static Beach). He served as Director of Deutsche Bank’s investment banking entity in Hong Kong, Deutsche Morgan Grenfell (Hong Kong) Ltd. Mr. Graf received a Bachelor of Arts degree in English Literature from the University of Chicago in 1987.
Insufficient data for James to compare compensation growth.
Insufficient data for James to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Chief Executive Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Graf Industrial board of directors is less than 3 years, this suggests a new board.
Board of Directors
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Graf Industrial Corp. intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with industrial companies in diversified industrial manufacturing, technology, distribution, and service businesses in the United States and Canada. The company was founded in 2018 and is based in Houston, Texas.
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