DSY Factors:
+ Shares have been Diluted in the last year.
+ Price has been marked above estimates
+ DSY financial characteristics indicate limited near-term opportunities.
+ Total liabilities exceed total assets, which raises the risk of financial distress.
+ Lack of Analyst (Apparent "Problematic")
On a Good Note:
+ Debt is well covered by earnings and cashflows.
SimplyWall.st Assumption:
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 Big Tree Cloud Holdings 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 8.1%, which is based on a levered beta of 1.016. 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.
$Big Tree Cloud Holdings Ltd(DSY)$
Guess I will shift weight if need be and wait for this, "Fair Price" to hit, "if it tracks that way"
Cheers Tigers,
Comments
We can still expect good things?
Pump and dump!