NVest Financial Holdings Limited, together with its subsidiaries, provides wealth management, stockbroking, and asset management services in South Africa.
The last earnings update was 66 days ago.
Discounted Cash Flow Calculation for JSE:NVE using Excess Returns Model Model
The calculations below outline how an intrinsic value for NVest Financial Holdings 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
NVest Financial Holdings
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
NVest Financial Holdings's
is considered below, and whether this is a fair price.
Price based on past earnings
NVest Financial Holdings'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 NVest Financial Holdings 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
NVest Financial Holdings
expected to grow at an
Unable to compare NVest Financial Holdings's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare NVest Financial Holdings's earnings growth to the South Africa market average as no estimate data is available.
Unable to compare NVest Financial Holdings's revenue growth to the South Africa market average as no estimate data is available.
Unable to determine if NVest Financial Holdings is high growth as no earnings estimate data is available.
Unable to determine if NVest Financial Holdings 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.
NVest Financial Holdings'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.
NVest Financial Holdings
has a total score of
4/6, 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
NVest Financial Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
NVest Financial Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
NVest Financial Holdings's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
NVest Financial Holdings'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.
Debt is covered by short term assets, assets are 1.2x debt.
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.
NVest Financial Holdings Limited, together with its subsidiaries, provides wealth management, stockbroking, and asset management services in South Africa. The company’s financial services include property management, sales, leasing, and brokerage, as well as ancillary services; short-term insurance brokerage; and commercial property investment services. It offers financial advisory and intermediary services in personal and commercial lines in the short term insurance industry; and portfolio management services, as well as offers investments in direct equity/shares and listed property stocks. The company also engages in the preparation of wills, managed accounts, and the administration of deceased estates and testamentary trusts. In addition, it manages the assets of local and foreign collective investment schemes; and provides healthcare advisory, risk advisory, fiduciary, and employee benefits services. NVest Financial Holdings Limited was founded in 1985 and is based in East London, South Africa.
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