Discounted Cash Flow Calculation for NasdaqGM:TPCO 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:TPCO DCF 1st Stage: Next 10 year cash flow forecast
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.
Tribune Publishing's share price is below the future cash flow value, and at a moderate discount (> 20%).
Tribune Publishing's share price is below the future cash flow value, and 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
Tribune Publishing's earnings available for a low price, and how does
this compare to other companies in the same industry?
Tribune Publishing's earnings are expected to grow significantly at over 20% yearly.
Tribune Publishing's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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.
Tribune Publishing'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
Tribune Publishing's finances.
The net worth of a company is the difference between its assets and liabilities.
Tribune Publishing is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Tribune Publishing's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Tribune Publishing'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.
High level of physical assets or inventory.
Tribune Publishing 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. Timothy P. Knight, also known as Tim, has been Chief Executive Officer of Tribune Publishing Company since January 2019 and serves as its President since 2019. Mr. Knight has been Director of Tribune Publishing Company since January 2019. He was President of Digital Content and Commerce Division troncX at tronc Inc. from February 23, 2017 to October 30, 2017. Mr. Knight is a co-founder of the digital business. Mr. Knight is responsible for all of tronc’s local market operations. He served as the Chief Executive Officer of Wrapports LLC, a subsidiary of Sun-Times Media Holdings, LLC. Mr. Knight served as the President and Chief Operating Officer of Newsday LLC until November, 2004. He served as President of the digital media company, Advance Ohio and directed the overall strategy, sales, marketing and content of cleveland.com. He joined Newsday as an Executive Vice President and General Manager in February 2003. He served as Vice President of Strategic Marketing, Development and Finance for the Chicago Tribune. He was responsible for the newspaper's interactive operations. From 1998 to 2001, Mr. Knight served as Vice President of Strategy and Development of Tribune Publishing Company, where he oversaw acquisitions, strategic planning and development projects. He served as a Director of Wrapports LLC. He was a co-founder and held senior management roles at Classified Ventures, LLC (parent of cars.com and apartments.com). Prior to joining Classified Ventures in 1997, he served as mergers and acquisitions counsel for Tribune Company. He has been engaged in number of civic organizations over the years and is a Member of the Board of Trustees of DePaul University, the Rock and Roll Hall of Fame, Destination Cleveland, United Way of Greater Cleveland and the Board of Regents of Mercy Home for Boys and Girls (Chicago). He also was a member of the Long Island Chapter of Young President’s Organization. He started his career as a corporate attorney at Skadden, Arps, Slate, Meagher and Flom in Chicago. He holds a B.S. in accounting from Marquette University in Milwaukee, Wisconsin, following which he passed the CPA exam. He also holds a juris doctorate with honors from DePaul University College of Law where he was Order of the Coif and attended the corporate finance program at London Business School.
Insufficient data for Tim to compare compensation growth.
Tim 's remuneration is lower than average for 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 Tribune Publishing management team is about average.
CEO, President & Director
Executive VP & CFO
Editor-In-Chief of The San Diego Union-Tribune & Publisher of The San Diego Union-Tribune
Editor-In-Chief & Publisher of The Baltimore Sun
Editor-In-Chief of Daily Press & Publisher of Daily Press
Controller & Chief Accounting Officer
Senior VP & Chief Information Officer
SVP & Chief Human Resources and Communications Officer
Senior Vice President of Digital Acquisition & Marketing
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Tribune Publishing board of directors is less than 3 years, this suggests a new board.
Board of Directors
CEO, President & Director
Lead Independent Director
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
What Should Investors Know About Tribune Publishing Company's (NASDAQ:TPCO) Return On Capital?
and want to begin learning the link between Tribune Publishing Company (NASDAQ:TPCO)’s return fundamentals and stock market performance. … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Thus, to understand how your money can grow by investing in Tribune Publishing, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)
Tribune Publishing Company, a media company, publishes newspapers worldwide. The company operates in two segments, M and X. It publishes daily newspapers; weekly newspapers; and digital platforms, such as Websites and mobile applications. The company also provides various digital marketing services, which include the development of mobile Websites, search engine marketing and optimization, social media account management, and content marketing for its customers’ Web presence for small to medium size businesses. In addition, it offers TCA, a syndication and licensing business that provides daily news service and syndicated premium content to approximately 2,000 media and digital information publishers. The company was formerly known as tronc, Inc. and changed its name to Tribune Publishing Company in October 2018. Tribune Publishing Company was founded in 1847 and is headquartered in Chicago, Illinois.
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