Latest news with #SandersonDesignGroup
Yahoo
16-03-2025
- Business
- Yahoo
An Intrinsic Calculation For Sanderson Design Group plc (LON:SDG) Suggests It's 47% Undervalued
The projected fair value for Sanderson Design Group is UK£0.90 based on 2 Stage Free Cash Flow to Equity Sanderson Design Group's UK£0.48 share price signals that it might be 47% undervalued In this article we are going to estimate the intrinsic value of Sanderson Design Group plc (LON:SDG) by taking the forecast future cash flows of the company and discounting them back to today's value. Our analysis will employ the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple! We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. View our latest analysis for Sanderson Design Group 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. 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. Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (£, Millions) -UK£5.92m UK£7.05m UK£6.70m UK£6.53m UK£6.45m UK£6.45m UK£6.49m UK£6.56m UK£6.66m UK£6.77m Growth Rate Estimate Source Analyst x3 Analyst x2 Analyst x1 Est @ -2.59% Est @ -1.12% Est @ -0.10% Est @ 0.62% Est @ 1.13% Est @ 1.48% Est @ 1.72% Present Value (£, Millions) Discounted @ 9.9% -UK£5.4 UK£5.8 UK£5.0 UK£4.5 UK£4.0 UK£3.7 UK£3.3 UK£3.1 UK£2.8 UK£2.6 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = UK£30m The second stage is also known as Terminal Value, this is the business's cash flow after 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 2.3%. We discount the terminal cash flows to today's value at a cost of equity of 9.9%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = UK£6.8m× (1 + 2.3%) ÷ (9.9%– 2.3%) = UK£91m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= UK£91m÷ ( 1 + 9.9%)10= UK£35m 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 UK£65m. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Compared to the current share price of UK£0.5, the company appears quite undervalued at a 47% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. 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 Sanderson Design 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 9.9%, which is based on a levered beta of 1.489. 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. Strength Currently debt free. Dividend is in the top 25% of dividend payers in the market. Weakness Earnings declined over the past year. Opportunity Trading below our estimate of fair value by more than 20%. Threat Paying a dividend but company has no free cash flows. Whilst important, the DCF calculation ideally won't be the sole piece of analysis you scrutinize for 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 instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. Can we work out why the company is trading at a discount to intrinsic value? For Sanderson Design Group, there are three additional elements you should explore: Risks: Be aware that Sanderson Design Group is showing 3 warning signs in our investment analysis , you should know about... Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for SDG'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. Simply Wall St updates its DCF calculation for every British stock every day, so if you want to find the intrinsic value of any other stock 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.
CairoScene
10-03-2025
- Business
- CairoScene
From London to Cairo: Sanderson's Return to Egypt With Design Emporium
From London to Cairo: Sanderson's Return to Egypt With Design Emporium Like poetry woven in silk and thread, fabrics tell stories of time, place and craft. When fabric meets furniture, a simple wooden chair becomes a storyteller, a sofa transforms into a sanctuary. In the world of interiors, textiles are more than materials - they are echoes of artistry, draped in history and elegance. With Design Emporium recently acquiring the British Sanderson Design Group, Egypt's interior design scene gains a new narrative; one of majesty and timeless elegance. 'In 1992, when my mother Aziza Al-Tanani - may her soul rest in peace - founded Design Emporium, Sanderson Design Group was one of the brands we proudly represented,' Karim Molyneux-Berry, Managing director at Design Emporium, tells SceneHome. 'Sadly, they left us in 2015, but bringing them back now is not just a great milestone; it's a deeply personal one.' Sanderson Design Group, a Royal Warrant holder, is home to six quintessentially British luxury interior brands: Sanderson, Morris & Co., Zoffany, Harlequin, Clarke & Clarke, and Scion. Each brand carries its own distinct character, and tells its own tale of craftsmanship, and design. 'Previously, we didn't have Morris & Co. with us, but with this heartfelt reunion - welcoming the Sanderson family back - we're thrilled to embrace Morris & Co. as part of our own Design Emporium family here in Egypt,' Molyneux-Berry explains. Honouring the legacy of English master of textiles and Poet William Morris, Morris & Co. brings the warmth of English country houses to the Egyptian home. Picture a dark olive-green velvet sofa, nestled against the iconic 'Strawberry Thief' wallpaper, its cushions echoing the same storied print. Or envision yourself in a quiet corner, gently swaying on a wooden chair upholstered in the lush green leaves of 'Willow Boughs Weave', reading your book with a nice warm cup of tea. These fabrics are fragments of poetry, transforming a house into a haven where the dwelling itself is an art of its own. If Harry Potter and Narnia are your midnight escapes, then Clarke & Clarke's Mythica collection is your portal. Quetzals soaring through emerald canopies, mythical beasts prowling in golden hues, and underwater utopias unfolding in deep, cerulean blues - each fabric and wallpaper tells a tale of wonder. With phoenixes rising, tigers lurking, and unicorns wandering through an enchanted dreamscape, Mythica transforms any space into a cabinet of curiosities, where every glance feels like turning the page of a forgotten myth. Beyond the enchanted and fabled, Clarke & Clarke's Metropolitan collection takes a strikingly different turn - one that echoes the bold rhythms of the urban landscape. Here, modern fabrics and wallpapers embrace dramatic noir tones, capturing the sleek energy of a penthouse in the heart of London or the sculptural fluidity of Frank Gehry's Beekman Tower in Manhattan. Silver blues and deep greys weave through abstract, sometimes geometric patterns, set against warm beige and sandy backdrops, turning walls into canvases of contemporary artistry. With a soft, plastered twist, Harlequin embraces hues that dance like mist. Less bold yet full of cheer, its colours shine both bright and clear. The Prism Plains collection bursts with vibrant delight, radiating plain yet lively hues. Meanwhile, the Kasuri Fabrics collection evokes Japanese artistry through subtle, woven textures. Then comes Salinas, elegance untold, where nature meets the glamour of 1920s gold, with nine exquisite wallpaper designs evoking quiet, timeless charm. Sanderson's Indoor Outdoor collection weaves a botanical haven, blurring the lines between home and garden. Greens, blues, and oranges entwine in a fresh, sunlit palette, where nature lingers, and spaces breathe. Meanwhile, the Disney Home x Sanderson wallpapers bring childhood classics to life. From the whimsy of 'Alice in Wonderland' to the quiet charm of 'Bambi' and the magic of 'Peter Pan', every wall becomes a storybook. And for those with a soft spot for honey, 'Winnie the Pooh' arrives in serene greens and blues, transporting you into the Hundred Acre Wood. 'Re-acquiring the Sanderson Design Group is a pivotal step, not only strengthening our market presence but also ensuring that we continue to bring exceptional, high-quality products to our valued clients and design enthusiasts,' Molyneux-Berry says. Photography Credit: Sanderson Design Group
