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Yahoo
29 minutes ago
- Business
- Yahoo
Are Investors Undervaluing Amotiv Limited (ASX:AOV) By 43%?
The projected fair value for Amotiv is AU$13.70 based on 2 Stage Free Cash Flow to Equity Amotiv's AU$7.87 share price signals that it might be 43% undervalued Our fair value estimate is 24% higher than Amotiv's analyst price target of AU$11.05 Does the June share price for Amotiv Limited (ASX:AOV) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (A$, Millions) AU$99.5m AU$123.1m AU$138.1m AU$124.6m AU$111.0m AU$108.9m AU$108.4m AU$109.0m AU$110.4m AU$112.3m Growth Rate Estimate Source Analyst x6 Analyst x7 Analyst x5 Analyst x2 Analyst x1 Est @ -1.93% Est @ -0.46% Est @ 0.56% Est @ 1.28% Est @ 1.78% Present Value (A$, Millions) Discounted @ 7.9% AU$92.2 AU$106 AU$110 AU$91.8 AU$75.8 AU$68.9 AU$63.5 AU$59.2 AU$55.5 AU$52.4 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = AU$775m The second stage is also known as Terminal Value, this is the business's cash flow after 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 (2.9%) 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 7.9%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = AU$112m× (1 + 2.9%) ÷ (7.9%– 2.9%) = AU$2.3b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= AU$2.3b÷ ( 1 + 7.9%)10= AU$1.1b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is AU$1.9b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of AU$7.9, the company appears quite good value at a 43% 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 Amotiv 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 7.9%, which is based on a levered beta of 1.149. 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 Amotiv Strength Debt is not viewed as a risk. Dividends are covered by earnings and cash flows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Auto Components market. Opportunity Annual earnings are forecast to grow faster than the Australian market. Good value based on P/E ratio and estimated fair value. Threat Annual revenue is forecast to grow slower than the Australian market. Valuation is only one side of the coin in terms of building your investment thesis, and 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. 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 Amotiv, we've compiled three essential aspects you should consider: Risks: To that end, you should be aware of the 1 warning sign we've spotted with Amotiv . Future Earnings: How does AOV'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 ASX 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. 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Fox News
29 minutes ago
- Entertainment
- Fox News
Trump's fresh White House portrait sparks interest amid controversy over National Portrait Gallery leadership
Nearly six months into his second term, President Donald Trump has a new portrait posted to the White House website. White House officials posted an eight-second video to social media on Monday, showing the new portrait being hung on the wall at the Eisenhower Executive Office Building on the White House Campus. In his previous presidential portrait, which was unveiled just days before taking the oath of office for his second term, Trump could be seen wearing a blue suit coat, white button-up shirt and blue tie. The president showed no expression in the previous portrait, compared to an official portrait taken of him in 2017, in which he was smiling. In the portrait unveiled on Monday, Trump is wearing a blue suit coat, white button-up shirt and a red tie. In both images, he has an American Flag pinned to his coat. The president also shows little expression in the new portrait. White House officials told Fox News Digital the photo was taken by White House photographer Daniel Torok. As of Monday evening, the photo is hanging in the Eisenhower Executive Office Building, and it will eventually start rolling out to other offices and federal buildings. Trump's new portrait was unveiled just days after he announced that he was firing Kim Sajet, the director of the National Portrait Gallery, for being a "strong supporter" of diversity, equity and inclusion (DEI). He announced Sajet's termination in a post on Truth Social on Friday afternoon. "Upon the request and recommendation of many people, I am hereby terminating the employment of Kim Sajet as Director of the National Portrait Gallery," the president wrote. "She is a highly partisan person, and a strong supporter of DEI, which is totally inappropriate for her position. Her replacement will be named shortly. Thank you for your attention to this matter!" A White House official told Fox News Digital that Sajet had donated $3,982 to Democrats, including the presidential campaigns of former President Joe Biden and Hillary Clinton. Sajet also reportedly donated to other Democrats, including former Vice President Kamala Harris. The White House also pointed to the gallery's photo of Trump, which was curated by Sajet. The caption of the photo reads, "Impeached twice, on charges of abuse of power and incitement of insurrection after supporters attacked the US Capitol on January 6, 2021, he was acquitted by the Senate in both trials. After losing to Joe Biden in 2020, Trump mounted a historic comeback in the 2024 election. He is the only president aside from Grover Cleveland (1837-1908) to have won a nonconsecutive second term."
GMA Network
30 minutes ago
- Business
- GMA Network
Philippine polymer bills win 'Best New Banknote Series'
The First Philippine Polymer Banknote Series (FPPBS), launched by the Bangko Sentral ng Pilipinas (BSP) last December, was awarded the 'Best New Banknote or Banknote Series' by non-profit organization International Association of Currency Affairs (IACA). In its writeup, the IACA cited innovation and uniqueness of security features of the FPPBS, such as the dynamic value panel which shifts its visual effect based on light angle, transparent windows, and shadow threads. It also cited the aesthetic appeal and overall design of the series, which it described as 'captivating and culturally significant.' Finalists for the award are the Bank of Jamaica New Series, and the Saka Style Kazakhstani Banknote Series. The FPPBS — which comes in denominations of P500, P100, and P50 — was officially launched in December 2024, after the P1,000 polymer banknote was released into circulation in 2022. 'This recognition affirms our commitment to innovation in currency design, ensuring that our banknotes meet the global standards of security and sustainability,' BSP deputy governor for payments and currency management Mamerto Tangonan said in a separate statement. The latest award comes as the P1,000 polymer banknote was awarded 'Banknote of the Year' for 2022 by global non-profit organization International Banknote Society (IBS). A survey conducted by the BSP last year showed that majority of Filipinos support the polymerization of Philippine banknotes, which it said are 'smarter, cleaner, and more durable.' —AOL, GMA Integrated News
Yahoo
30 minutes ago
- Business
- Yahoo
Lego discount codes for June 2025 – how to save 20%
Lego is one of the most iconic brands in the world. While its classic sets remain favourites, newness is launching all the time, with some of the latest to look forward to including the Bluey and a Nintendo Gameboy sets to land this year. From the Star Wars enthusiast to the Twilight fanatic, there's a set for every interest and age group. To help you build your collection for less, our expert deal hunters are always on the lookout for the best Lego deals and special offers. We've got top tips on how to save on Lego sets, plus all the perks you can get with a Lego Insiders membership. To shop savvy and spend less on your next purchase, we'd recommend checking out the latest deals in the Lego sale. Right now you can save up to half price on a selection of Lego sets and merchandise. While away the hours tackling a 1,000-piece Lego puzzle, which is now 30 per cent off (was £15.99, now £11.19). If you haven't already signed up, it's a good idea to look into Lego Insiders. The membership is free to join and grants exclusive access to Lego perks. For instance, free gifts are thrown in when you buy a new set, which, at the moment, is the iconic Simpsons living room. Plus, get members-only early access and exclusive rewards, think special discounts and Legoland tickets. Students, there are special Lego student discounts just for you too. Make sure you're set up with a Student Beans account first, and you'll be able to get free delivery when your shopping basket comes to more than £50. What's more, if you spend £180, you'll get a free gift, too. Meanwhile, budding Lego enthusiasts will be able to get their hands on free printed Lego magazines. Delivered four times a year and suitable for ages five to nine, these magazines are filled with Lego activities, comics, posters and more to keep little Lego fans entertained for hours. Have you lost Lego somewhere? A piece or two will inevitably go missing now and again, but Lego has a solution – its piece replacement service means no set needs ever go unfinished. Similarly, you'll be able to request a replacement for any broken pieces. You can also further curate builds by buying a host of extra pieces, from bricks to minifigure parts, so you can really get creative. The Independent has been a trusted consumer champion since 1986, reporting on behalf of our readers to find the best deals and discounts. Whether it's Lego coverage, regular deals coverage or helping you source the top offers during some of the biggest annual shopping events (think Amazon Prime Day, Black Friday and the Boxing Day sales), our team are always looking out for the best ways to save you money on the products worth buying. We only ever select offers on the brands and retailers that we trust.
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Business Standard
30 minutes ago
- Politics
- Business Standard
Harvard asks judge for fast ruling in $2.6 bn Trump funding freeze case
By David Voreacos and Janet Lorin Harvard University lawyers urged a federal judge to rule quickly that the Trump administration's freeze on about $2.6 billion in federal funding is illegal and that it violated the school's free speech and regulatory rights. In a court filing Monday, Harvard argued that the US has not produced enough evidence to show that the administration's action was a legally justified response to address antisemitism and a perceived liberal bias on campus. The school asked US District Judge Allison Burroughs to grant summary judgment, meaning to move more quickly than she might in a typical lawsuit to reinstate Harvard's funding. 'The government's rush to freeze and terminate billions of dollars in current and future federal funding to Harvard for critical research lacks the basic requisites of reasoned decisionmaking,' Harvard's lawyers wrote in the filing in Boston federal court. As the richest and oldest US university, Harvard has become the main target of President Donald Trump's attempts to force schools to crack down on antisemitism, remove perceived political bias and eliminate diversity, equity and inclusion programs. Trump also wants to cap Harvard's foreign student enrollment at 15 per cent, revoke its tax-exempt status and cancel its remaining federal contracts. Burroughs has temporarily blocked both the funding freeze and a US bar on letting Harvard enroll international students, which is the subject of a separate lawsuit. The White House didn't immediately respond to a request for comment. Harvard claims that the US violated the Administrative Procedure Act and its First Amendment rights by seeking to dictate decisions on faculty hiring, academic programs and student admissions. It also claims Trump retaliated against Harvard for refusing his demands to make sweeping changes at the school. The school, which sued the US on April 21 over funding, demanded then that the Justice Department provide 'all formal and informal communications between and among any federal agency employees involved in the decision to freeze grants to and contracts with Harvard.' Those records should 'include directions by White House officials,' attorney Steven Lehotsky wrote. The government provided those records, which aren't publicly available, to Harvard in heavily redacted form. In its filing, Harvard's lawyers wrote that the federal records confirm 'the government's rush to judgment' and that they are 'devoid of any individualized assessments of Harvard's funded projects, the University's efforts to confront antisemitism, or any connection between the two.' Rather, the records make clear that 'the directive to freeze and terminate every dollar of Harvard's research funds came directly from the White House, which dictated the form that such terminations would take and set arbitrary deadlines for particular terminations,' the school's lawyers wrote. 'That blunt-force punishment is the antithesis of reasoned agency decisionmaking.' Burroughs has ordered lawyers on both sides to file legal motions before she holds a July 21 hearing on the matter. The school made similar procedural and free-speech claims in its May 23 lawsuit over the foreign student ban that the US imposed. Homeland Security Secretary Kristi Noem shocked the campus a day earlier by immediately revoking Harvard's ability to enroll international students, despite the school participating in a US program for more than 70 years. Noem said the school failed to answer questions about foreign students and discipline. To regain permission, Harvard was given 72 hours to provide information about foreign students, including disciplinary records and video of those engaged in protests. After Harvard sued, Noem's investigators issued a 'notice of intent to withdraw' Harvard from its Student and Exchange Visitor Program ahead of a May 29 hearing. That notice appeared to address Harvard's claim that Noem's revocation failed to follow procedures or let the school fix its problems. Under those procedures, Harvard has 30 days to submit written materials to persuade Noem's department to forgo bouncing it from the program. Harvard is also entitled to administrative appeals if it loses. Harvard and its president, Alan Garber, refuted some of the government's allegations, such as denying it is a partisan institution. He has said the university improved its disciplinary procedures, and efforts to encourage diversity of thought. In a scathing report about antisemitism, Garber apologized for failing 'to meet the high expectations we rightfully set for our community.' 'The government fails to acknowledge, let alone engage with, the dozens of steps Harvard has taken and committed to take to address antisemitism and bias,' the lawyers wrote in the filing on Monday.
