Latest news with #DBM
Yahoo
6 days ago
- Business
- Yahoo
Is Doman Building Materials Group Ltd. (TSE:DBM) Trading At A 36% Discount?
Doman Building Materials Group's estimated fair value is CA$13.10 based on 2 Stage Free Cash Flow to Equity Doman Building Materials Group is estimated to be 36% undervalued based on current share price of CA$8.32 The CA$9.71 analyst price target for DBM is 26% less than our estimate of fair value How far off is Doman Building Materials Group Ltd. (TSE:DBM) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (CA$, Millions) CA$106.2m CA$104.9m CA$104.8m CA$105.5m CA$106.8m CA$108.5m CA$110.5m CA$112.8m CA$115.3m CA$117.9m Growth Rate Estimate Source Analyst x5 Analyst x5 Est @ -0.08% Est @ 0.69% Est @ 1.23% Est @ 1.61% Est @ 1.87% Est @ 2.06% Est @ 2.19% Est @ 2.28% Present Value (CA$, Millions) Discounted @ 11% CA$95.7 CA$85.2 CA$76.7 CA$69.7 CA$63.6 CA$58.2 CA$53.5 CA$49.2 CA$45.3 CA$41.8 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = CA$639m 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. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.5%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 11%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = CA$118m× (1 + 2.5%) ÷ (11%– 2.5%) = CA$1.4b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= CA$1.4b÷ ( 1 + 11%)10= CA$507m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is CA$1.1b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Compared to the current share price of CA$8.3, the company appears quite good value at a 36% 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. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the 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 Doman Building Materials Group 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 11%, which is based on a levered beta of 1.951. 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. Check out our latest analysis for Doman Building Materials Group Strength Dividends are covered by earnings and cash flows. Dividend is in the top 25% of dividend payers in the market. Weakness Earnings declined over the past year. Interest payments on debt are not well covered. Opportunity Annual earnings are forecast to grow faster than the Canadian market. Good value based on P/E ratio and estimated fair value. Significant insider buying over the past 3 months. Threat Debt is not well covered by operating cash flow. Revenue is forecast to grow slower than 20% per year. Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. DCF models are not the be-all and end-all of investment valuation. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. What is the reason for the share price sitting below the intrinsic value? For Doman Building Materials Group, there are three further factors you should consider: Risks: Every company has them, and we've spotted 2 warning signs for Doman Building Materials Group (of which 1 doesn't sit too well with us!) you should know about. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for DBM's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the TSX 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
The Star
25-05-2025
- Business
- The Star
Philippines Budget Secretary wants louder calls for FOI law
MANILA: Budget Secretary Amenah Pangandaman (pic) called on the incoming 20th Congress to finally approve the freedom of information (FOI) bill, a measure advocated since the 1980s by lawmakers, anticorruption watchdogs and civil society groups, gaining traction in local ordinances and Palace directives, but which has repeatedly faltered in the national legislature. Speaking during a programme in celebration of Open Government Week on Friday (May 23), Pangandaman underscored the need for upholding the people's right to information as enshrined in the Constitution. 'However, the fact remains that we have yet to pass an enabling law that will truly uphold people's constitutional right to information. This is why I am calling on everyone present here tonight to make our clamour for the passage of a law on right of access to information in the 20th Congress even louder and clearer,' she said. According to Malacañang, Pangandaman is one of the economic managers being retained by President Marcos, who earlier this week ordered all Cabinet officials and agency chiefs to file their courtesy resignations as part of the administration's post-election performance review and 'reset.' Earlier this month, Makati Business Club executive director Rafael Ongpin also cited the FOI bill as one of the measures that the business community would like to see passed in the 20th Congress. The Philippine Open Government Partnership (PH-OGP), an initiative chaired by Pangandaman, recently conducted stakeholder consultations revisiting strategies for pushing the bill. Two latest drafts—one from the Department of Budget and Management (DBM) and another from the Presidential Communications Office—have been presented to business, civil society and academic organizations for feedback. In the meantime, the PH-OGP had made some significant strides in embedding 'open government principles' in public service, Pangandaman said in her speech. 'We have moved steadily from commitment to action. We've demonstrated that open government is not just a passing trend. It is a working principle embedded in how we plan, spend, consult, and reform,' she said. Pangandaman cited the Philippines being cited as Asia's most fiscally transparent country in the latest Open Budget Survey, and its improved ranking in the 2025 World Press Freedom Index. The DBM chief also reported that a total of 88 local governments had passed FOI ordinances, showing how the drive for change can emanate from the bottom up. She also cited the New Government Procurement Act (Republic Act No. 12009) signed by Marcos on July 20, 2024, calling it the biggest anticorruption measure in recent years. The legislative drive for an FOI law can be traced to 1987, when then Camarines Sur Rep. Raul Roco filed House Bill No. 498. In 2008, the House approved an FOI bill—HB No. 3732—while the Senate approved its own version the following year. Following a bicameral conference, a reconciled version was approved by the Senate in February 2010 but the House failed to do the same due to a lack of quorum. In July 2016, then President Rodrigo Duterte signed Executive Order No. 2, which granted public access to information held by government offices—but only those under the executive branch. Under the EO, local governments were just 'encouraged to observe and be guided' by the order. In the current 19th Congress, more than a dozen FOI-related bills have been filed in both chambers. Among them was Senate Bill No. 2880, filed in November 2024 with Senators Grace Poe, Joel Villanueva, Loren Legarda, Robinhood Padilla, Ramon 'Bong' Revilla Jr., and then senator (now education secretary) Sonny Angara as coauthors. The bill is currently pending second reading. In the House, two FOI bills were filed—1638 and 5022—by Quezon City Rep. Patrick Michael Vargas and Parañaque City Rep. Gus Tambunting, respectively. In June 2023, President Marcos pledged to uphold FOI as a vital tool against misinformation. Yet earlier that year, in March, Malacañang announced the imposition of additional restrictions on the FOI directive issued by Duterte, particularly on information related to national security and the safety of minors. - Philippine Daily Inquirer/ANN
Filipino Times
23-05-2025
- Business
- Filipino Times
Imee Marcos says colleagues urge her to run for Senate president, calls for budget, electoral reforms
Reelected Senator Imee Marcos revealed that some of her colleagues in the upcoming 20th Congress have encouraged her to seek the Senate presidency. In a statement, Marcos said she had been approached by fellow senators but did not disclose how she responded. 'Some senators have approached me with the proposal to be their candidate for Senate President,' she said. 'Whoever will be elected by our peers, whether it is me or not, there are certain congressional reforms that need to be undertaken,' she added. Among her top priorities is reforming the budgetary process, especially the practices observed during bicameral conference committee deliberations on the annual national budget. 'The most important is reform in the budgetary process. Tigilan na ang mahiwagang bicam,' she said. 'The right priorities in spending, considering our recurring fiscal deficits and huge indebtedness, must be legislated: food security and support to our farmers and fishermen; education; health and truly necessary social services.' Marcos also took issue with a recent statement by the Department of Budget and Management (DBM), which said President Ferdinand 'Bongbong' Marcos Jr. will sit as an observer during the budget process. 'Parenthetically, once the OP (Office of the President) has submitted the NEP (National Expenditure Program) to Congress, the power of the purse must be respected,' she said. 'The DBM statement that the president will involve himself in the budgetary process after the NEP is submitted is infirm and unconstitutional.' As of posting, Executive Secretary Lucas Bersamin has yet to respond to requests for comment regarding Senator Marcos' remarks. The senator also highlighted the need for electoral reforms, particularly those involving political parties, which she claimed have become 'mere tools for personal ambition rather than the public interest.' 'Above all, the Senate as the guardian of national interest must always be upheld; its independence non-negotiable,' she stressed. Aside from Marcos, other senators reportedly in the running for Senate President are incumbent Senate President Francis 'Chiz' Escudero and Senator-elect Vicente 'Tito' Sotto III. Senator-elect Erwin Tulfo confirmed that both Escudero and Sotto have approached him for discussions on the Senate leadership. 'Parehas sila inimbitahan ako. They want to sit down with me. Si Sen. Tito Sotto. Ganun din si Sen. Chiz, pero sabi ko sa kanila pareho ay kausapin ko muna 'yung utol ko,' Tulfo said, referring to his brother, incumbent Senator Raffy Tulfo. Tulfo said he has yet to make a commitment to either of the two, though he had a 'long discussion' with his brother about the matter. Erwin Tulfo ran under the Marcos administration's Alyansa Para sa Bagong Pilipinas alongside Sotto, while Raffy Tulfo previously worked with Escudero in the 19th Congress. While the Tulfo brothers have consulted each other, Erwin said his vote may still differ from his brother's. 'I need more time to consult because six years or three years… magiging Senate president. Kung mali ang mailuklok namin, yari tayo, walang patutunguhan,' he said. 'Kailangan ang Senate president kaya niyang pagkaisahin ang mga senador. Kailangan maraming batas ang maipasa para sa taumbayan, hindi 'yung pang-sariling interes. Dapat 'yung interes ng Senate president is interest ng pangkalahatan. Hindi lang ng senador, kundi ng taumbayan,' he added. Reelected Senator Bong Go earlier confirmed that both Sotto and Escudero have also reached out to him about the Senate presidency. Last week, reelected Senator Panfilo 'Ping' Lacson said that at least 13 senators in the 20th Congress are leaning toward electing a Senate president who is 'independent, transparent, and competent.
GMA Network
23-05-2025
- Politics
- GMA Network
Imee Marcos: Some senators asked me to vie for Senate presidency
Reelected Senator Imee Marcos said Friday some of her colleagues in the upcoming 20th Congress have asked her to vie for the Senate presidency. Marcos disclosed this in a statement, but she did not give details about her response to the "proposal." "Some senators have approached me with the proposal to be their candidate for Senate President," she said. "Whoever will be elected by our peers, whether it is me or not, there are certain congressional reforms that need to be undertaken," she added. Marcos emphasized in her statement the need to reform the budgetary process, particularly the traditions during the bicameral conference committee on the annual national spending plan bill. "The most important is reform in the budgetary process. Tigilan na ang mahiwagang bicam (Stop the 'magical' bicam sessions). The right priorities in spending, considering our recurring fiscal deficits and huge indebtedness, must be legislated: food security and support to our farmers and fishermen; education; health and truly necessary social services," she said. She likewise objected to the statement of the Department of Budget and Management (DBM) that her brother, President Ferdinand "Bongbong" Marcos Jr., will sit in the budgetary process as an observer. "Parenthetically, once the OP (Office of the President) has submitted the NEP (National Expenditure Program) to Congress, the power of the purse must be respected. The DBM statement that the president will involve himself in the budgetary process after the NEP is submitted is infirm and unconstitutional," she said. GMA News Online has reached out to Executive Secretary Lucas Bersamin regarding Senator Marcos' statement, but he has yet to respond as of posting time. In the same statement, Imee raised the need for electoral reforms, including political party reforms which she said have become "mere tools for personal ambition rather than the public interest." "Above all, the Senate as the guardian of national interest must always be upheld; its independence non-negotiable," she said. Apart from Imee, other senators of the 20th Congress who are reportedly vying for the chamber's top post were current Senate President Francis "Chiz" Escudero and Senator-elect Vicente "Tito" Sotto III. Reelected Senator Bong Go earlier confirmed that Sotto and Escudero have discussed with him separately the Senate presidency in the 20th Congress. Last week, reelected Senator Panfilo "Ping" Lacson said at least 13 senators of the 20th Congress have expressed preference for a Senate president who is "independent, transparent, and competent." — VDV, GMA Integrated News
GMA Network
23-05-2025
- Business
- GMA Network
Econ team engages with civil groups to refine macroeconomic, DBCC process
The Marcos administration's economic team has engaged, for the first time, members of civil society organizations (CSOs) in a dialogue to refine the Development Budget Coordination Committee (DBCC) process. In a news release on Friday, the Department of Finance (DOF) said the DBCC —chaired by the Department of Budget and Management (DBM) and composed of the DOF, the Department of Economy, Planning and Development (DEPDev), and the Office of the President (OP), with the Bangko Sentral ng Pilipinas (BSP)— held a dialogue with 15 CSOs last May 21, 2025 to 'strengthen participatory governance and provide a platform for meaningful engagement between civil society and key policymakers.' The 'Macroeconomic Insights for National Action: An Economic Dialogue with Civil Society' —organized by the DBM in collaboration with its Budget Policy and Strategy (BPS) Group and the Philippine Open Government Partnership (PH-OGP)— was in line with President Ferdinand Marcos Jr.'s directive to make the DBCC process more transparent, inclusive, and reflective of the concerns of various stakeholders. The DBCC is primarily responsible for reviewing and approving the government's macroeconomic targets, revenue projections, borrowing levels, overall budget ceiling, and expenditure priorities. The body recommends to the Cabinet and the President the consolidated public sector financial position and the national fiscal program. The dialogue, during which CSOs share their feedback and policy recommendations, and explore diverse perspectives on emerging economic challenges, was paneled by Budget Secretary and DBCC chair Amenah Pangandaman together with DOF Undersecretary and chief economist Domini Velasquez, BSP Deputy Governor Zeno Abenoja, DBM principal economist and Undersecretary Joselito Basilio, and DBM Assistant Secretary Romeo Matthew Balanquit served as panelists during the event. The DOF said DBM Undersecretary Basilio opened the session with an overview of the DBCC's structure and processes. Budget chief Pangandaman, for her part, gave a keynote that underscored the significance of CSO engagement in the budget cycle and emphasized the administration's push for budget reforms that prioritize openness and accountability. DOF's Velasquez, meanwhile, highlighted the DOF's critical role in securing the financial backbone of the government, noting the challenge of raising P12.72 billion in daily revenues this year to fund the P6.352 trillion national budget—of which only P4.64 trillion is supported by revenue collections. Velasquez also said that the DOF is implementing a three-pronged strategy to boost revenue generation, namely strengthening tax administration, enacting key revenue reforms, and maximizing non-tax revenues through public-private partnerships (PPPs) and strategic privatization initiatives. The Finance official likewise reassured CSOs that the government is on track to bring the fiscal deficit down gradually to just 3.7% by 2028. On the BSP's side, Abenoja presented the latest macroeconomic assumptions and monetary policy developments amid the shifting global landscape. During the open forum, CSO participants raised timely and relevant points on tax policy, transparency in budgeting, digital transformation, and freedom of information, according to the DOF. The Finance Department said the CSOs' insights and recommendations will be thoroughly considered by the DBCC in crafting macroeconomic and fiscal strategies that genuinely reflect the needs and aspirations of the Filipino people. —AOL, GMA Integrated News
