Latest news with #BRKN
Yahoo
10-07-2025
- Business
- Yahoo
Estimating The Intrinsic Value Of Burkhalter Holding AG (VTX:BRKN)
The projected fair value for Burkhalter Holding is CHF141 based on 2 Stage Free Cash Flow to Equity Current share price of CHF132 suggests Burkhalter Holding is potentially trading close to its fair value The CHF116 analyst price target for BRKN is 18% less than our estimate of fair value In this article we are going to estimate the intrinsic value of Burkhalter Holding AG (VTX:BRKN) by taking the expected future cash flows and discounting them to their present value. Our analysis will employ the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Levered FCF (CHF, Millions) CHF60.3m CHF63.8m CHF66.9m CHF69.1m CHF70.6m CHF71.8m CHF72.7m CHF73.5m CHF74.1m CHF74.7m Growth Rate Estimate Source Analyst x1 Analyst x1 Analyst x1 Analyst x1 Est @ 2.21% Est @ 1.67% Est @ 1.30% Est @ 1.03% Est @ 0.85% Est @ 0.72% Present Value (CHF, Millions) Discounted @ 5.1% CHF57.4 CHF57.7 CHF57.6 CHF56.6 CHF55.0 CHF53.2 CHF51.3 CHF49.3 CHF47.3 CHF45.3 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = CHF531m After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 0.4%. We discount the terminal cash flows to today's value at a cost of equity of 5.1%. Terminal Value (TV)= FCF2035 × (1 + g) ÷ (r – g) = CHF75m× (1 + 0.4%) ÷ (5.1%– 0.4%) = CHF1.6b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= CHF1.6b÷ ( 1 + 5.1%)10= CHF966m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is CHF1.5b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Compared to the current share price of CHF132, the company appears about fair value at a 6.1% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Burkhalter Holding as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 5.1%, which is based on a levered beta of 1.087. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Burkhalter Holding Strength Earnings growth over the past year exceeded the industry. Debt is not viewed as a risk. Weakness Earnings growth over the past year is below its 5-year average. Dividend is low compared to the top 25% of dividend payers in the Construction market. Opportunity Annual earnings are forecast to grow for the next 3 years. Current share price is below our estimate of fair value. Threat Dividends are not covered by earnings. Annual earnings are forecast to grow slower than the Swiss market. Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Burkhalter Holding, we've compiled three additional aspects you should consider: Risks: Case in point, we've spotted 1 warning sign for Burkhalter Holding you should be aware of. Future Earnings: How does BRKN's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the SWX every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Hype Malaysia
14-05-2025
- Entertainment
- Hype Malaysia
2 New Drops From Nike & Équipement De Vie Are For The Bold, Brawny & Boss!
It's a fact of life that the right shoe can make the athlete. Whether it's on the road or the high seas, having the perfect footwear can help anyone rise to the occasion and even surpass expectations. That's why it's an absolute godsend that the two brands highlighted here recently dropped some jaw-dropping footwear. We call dibs! Deichmann x Nike's V5 RNR In order to envision its resurrected trainers on next-generation creatives, Deichmann first partnered with Nike on their 'EXPECT THE UNEXPECTED' campaign. Returning this spring for a chic second installment, the campaign is defying expectations with an inspiring lookbook of fits. The new V5 RNR, which just had its first launch, is the subject of the newest images in four essential colourways. The sporty silhouette of this Y2K-inspired sneaker, which features mesh panels and metallic accents, has been praised recently for perfectly capturing the look of the iconic dad shoe, while being more reasonably priced than the brand's other general release models. By bringing the V5 RNR into Berlin's cultural hotspots and away from its presumedly sporty realm, featured artists BRKN and Laura Wittek embody the campaign's overarching theme of subverting stereotypes. While musician BRKN is spotted promoting his uniqueness in vintage leather jackets and denim jeans, Wittek, a content creator and all-around style tastemaker, makes her mark on the sneaker with an eclectic mix of plaid pants and track jackets. The Nike V5 RNR is available via Deichmann's website, priced at €84.99 (~RM410). Équipement De Vie's Lemieux Elite The newest footwear line for active adventurers, Équipement De Vie, offers stylish deep-sea footwear. EDV creates technical and performance-enhancing styles for sailing enthusiasts, putting young sailors at the forefront. EDV's 2025 key styles combine adaptable sportswear outlines with oceanwide navigation, making them resistant to rocky ocean waves and slippage. To go with your versatile sailing gear, the brand's debut lineup consists of four pairs in a variety of neutral colourways. Leading the collection with racing capabilities for a swift experience, the Lemieux Offshore boasts special technology that balances hot and cool temperatures in 'Grey,' 'White,' and 'Navy.' For well-rounded and seasoned sailors, the Lemieux Elite is perfect, while the Lemieux Suede/Leather adds opulent style to your sportswear. The collection is completed with EDV's mid-top Finch Chukka in soft cow leather. The Équipement De Vie's Lemieux Elite is available for purchase now at the brand's website, priced at RM814 a pair.
Yahoo
11-05-2025
- Business
- Yahoo
Why It Might Not Make Sense To Buy Burkhalter Holding AG (VTX:BRKN) For Its Upcoming Dividend
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Burkhalter Holding AG (VTX:BRKN) is about to go ex-dividend in just 3 days. The ex-dividend date generally occurs two days before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. This means that investors who purchase Burkhalter Holding's shares on or after the 15th of May will not receive the dividend, which will be paid on the 19th of May. The company's next dividend payment will be CHF04.85 per share, on the back of last year when the company paid a total of CHF4.85 to shareholders. Based on the last year's worth of payments, Burkhalter Holding stock has a trailing yield of around 3.7% on the current share price of CHF0129.80. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Burkhalter Holding paid out 90% of its earnings, which is more than we're comfortable with, unless there are mitigating circumstances. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. Dividends consumed 62% of the company's free cash flow last year, which is within a normal range for most dividend-paying organisations. It's good to see that while Burkhalter Holding's dividends were not well covered by profits, at least they are affordable from a cash perspective. Still, if the company continues paying out such a high percentage of its profits, the dividend could be at risk if business turns sour. View our latest analysis for Burkhalter Holding Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. With that in mind, we're encouraged by the steady growth at Burkhalter Holding, with earnings per share up 7.7% on average over the last five years. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. It looks like the Burkhalter Holding dividends are largely the same as they were 10 years ago. Is Burkhalter Holding worth buying for its dividend? While earnings per share have been growing slowly, Burkhalter Holding is paying out an uncomfortably high percentage of its earnings. However it did pay out a lower percentage of its cashflow. Bottom line: Burkhalter Holding has some unfortunate characteristics that we think could lead to sub-optimal outcomes for dividend investors. Although, if you're still interested in Burkhalter Holding and want to know more, you'll find it very useful to know what risks this stock faces. In terms of investment risks, we've identified 1 warning sign with Burkhalter Holding and understanding them should be part of your investment process. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
