Discounted Cash Flow Calculation for NasdaqGM:SY using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
Note: Free cash flow to equity valuations ignore the company's cash or debt.
NasdaqGM:SY DCF 1st Stage: Next 10 year cash flow forecast
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
So-Young International's earnings available for a low price, and how does
this compare to other companies in the same industry?
So-Young International's earnings are expected to grow significantly at over 20% yearly.
So-Young International's revenue is expected to grow significantly at over 20% yearly.
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.
All data from So-Young International Company Filings, last reported 5 months ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
NasdaqGM:SY Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions)
Net Income *
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
So-Young International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
It is difficult to establish if So-Young International has efficiently used its assets last year compared to the US Interactive Media and Services industry average (Return on Assets) as it is loss-making.
It is difficult to establish if So-Young International improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
So-Young International'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
Interactive Media and Services
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
So-Young International's finances.
The net worth of a company is the difference between its assets and liabilities.
So-Young International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
So-Young International's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
So-Young International'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.
So-Young International 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. Xing Jin is co-founder of So-Young International Inc. and has served as director and chief executive officer since March 2013. Mr. Jin was the vice president and general manager of social operations of IM2.0 Interactive Group from 2011 to 2013. From 2009 to 2011, Mr. Jin served as a product operations director at Tenpay, an online payment service provider under Tencent Group (HKEx: 0700). Prior to that, Mr. Jin co-founded a social networking service community from 2007 to 2009, served as a senior product operations manager at Oak Pacific Interactive from 2004 to 2007, and served as a product development manager for Tom.com from 2001 to 2004. Mr. Jin received his bachelor’s degree in management information systems from Tianjin University in 2001.
Insufficient data for Xing to compare compensation growth.
Insufficient data for Xing 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 tenure for the So-Young International management team is about average.
Co-Founder & Chief Information Officer
CFO & Director
Chief Operating Officer
Chief Technology Officer
Investor Relations Officer
Chief Human Resources officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the So-Young International board of directors is less than 3 years, this suggests a new board.
Board of Directors
CFO & Director
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Why So-Young International Inc. (NASDAQ:SY) Could Have A Place In Your Portfolio
By this I mean, I look at stocks holistically, from their financial health to their future outlook. … If you're interested in understanding beyond my broad commentary, read the full report on So-Young International here.Flawless balance sheet with high growth potential One reason why investors are attracted to SY is its notable earnings growth potential in the near future of 55%. … NasdaqGM:SY Past and Future Earnings, September 2nd 2019 Next Steps: For So-Young International, there are three important aspects you should further examine: Historical Performance: What has SY's returns been like over the past?
So-Young International Inc. operates an online platform for discovering, evaluating, and reserving medical aesthetic services. The company facilitates research for treatments, read reviews about them, and book appointments on the platform and blog under the name Beauty Diaries. Its platform enables users to discover content and share their own experience on medical aesthetics procedures, and leads users to reserve treatment services from medical aesthetic service providers for offline treatment in China and internationally. The company provides Software as a Service and professional training programs for medical service providers in aesthetic, dental, dermatology, ophthalmology, gynecology, and physical examination sectors. So-Young International Inc. was founded in 2013 and is headquartered in Beijing, China.
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.