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Bright Green (Bright Green) Intrinsic Value: DCF (Earnings Based) : $-0.92 (As of Apr. 27, 2024)


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What is Bright Green Intrinsic Value: DCF (Earnings Based)?

As of today (2024-04-27), Bright Green's intrinsic value calculated from the Discounted Earnings model is $-0.92.

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's predictability rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

Bright Green's Predictability Rank is Not Rated. Thus, this page is only used for demonstration purposes and the DCF related results in the screener and portfolio will appear as zero.

Margin of Safety (Earnings Based) using Discounted Earnings model for Bright Green is N/A.

The historical rank and industry rank for Bright Green's Intrinsic Value: DCF (Earnings Based) or its related term are showing as below:

BGXX's Price-to-DCF (Earnings Based) is not ranked *
in the Drug Manufacturers industry.
Industry Median: 1.06
* Ranked among companies with meaningful Price-to-DCF (Earnings Based) only.

Bright Green Intrinsic Value: DCF (Earnings Based) Historical Data

The historical data trend for Bright Green's Intrinsic Value: DCF (Earnings Based) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Bright Green Intrinsic Value: DCF (Earnings Based) Chart

Bright Green Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Intrinsic Value: DCF (Earnings Based)
- - - -

Bright Green Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Intrinsic Value: DCF (Earnings Based) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Competitive Comparison of Bright Green's Intrinsic Value: DCF (Earnings Based)

For the Drug Manufacturers - Specialty & Generic subindustry, Bright Green's Price-to-DCF (Earnings Based), along with its competitors' market caps and Price-to-DCF (Earnings Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Bright Green's Price-to-DCF (Earnings Based) Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Bright Green's Price-to-DCF (Earnings Based) distribution charts can be found below:

* The bar in red indicates where Bright Green's Price-to-DCF (Earnings Based) falls into.



Bright Green Intrinsic Value: DCF (Earnings Based) Calculation

This is the intrinsic value calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DCF calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.66%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Growth Rate in the growth stage: g1 = 5%
The Growth Rate in the growth stage is initially set as the default 10-Year EPS without NRI Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year EPS without NRI Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year EPS without NRI Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=> Bright Green's average EPS without NRI Growth Rate in the past 3 years was -54.40%, which is less than 5%. GuruFocus defaults => Growth Rate: 5%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Years of Terminal Growth: y2 = 10

6. EPS without NRI: eps without nri = $-0.080.
GuruFocus DCF calculator is actually a Discounted Earnings calculator, EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.

All of the default settings can be changed and the results are calculated automatically.

Bright Green's Intrinsic Value: DCF (Earnings Based) for today is calculated as:

Intrinsic Value: DCF (Earnings Based)=EPS without NRI*{[(1+g1)/(1+d)+(1+g1)^2/(1+d)^2+...+(1+g1)^10/(1+d)^10]
+(1+g1)^10/(1+d)^10*[(1+g2)/(1+d)+(1+g2)^2/(1+d)^2+...+(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+0.05)/(1+0.11) = 0.94594594594595
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

Intrinsic Value: DCF (Earnings Based)=EPS without NRI*{[x+x^2+...+x^10]+x^10*[y+y^2+...+y^10]}
=EPS without NRI*[x*(1-x^10)/(1-x)+x^10*y*(1-y^10)/(1-y)]
=-0.080*11.5406
=-0.92

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(-0.92-0.1996)/-0.92
=N/A

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Bright Green  (NAS:BGXX) Intrinsic Value: DCF (Earnings Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book Value per Share, Graham Number, Median Ratio etc, discounted Cash Flow model evaluates the companies based on their future earnings power instead of their assets.


Be Aware

What you need to know about Discounted Earnings model:

1. The Discounted Earnings model evaluates a company based on its future earnings power
2. Growth is taken into account; therefore a faster growth company is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies that are relatively consistent performers.
4. The Discounted Earnings model works poorly for inconsistent performers like cyclicals.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less predictable businesses.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.


Bright Green Intrinsic Value: DCF (Earnings Based) Related Terms

Thank you for viewing the detailed overview of Bright Green's Intrinsic Value: DCF (Earnings Based) provided by GuruFocus.com. Please click on the following links to see related term pages.


Bright Green (Bright Green) Business Description

Industry
Traded in Other Exchanges
N/A
Address
1033 George Hanosh Boulevard, Grants, NM, USA, 87020
Bright Green Corp is a provider of cannabis, cannabis-related products, and other legal medicinal plant-based therapies, manufactured for research and pharmaceutical applications, as well as being an active ingredient in consumer-based solutions. The company plans to focus on the development of cannabis strains and sales of products with high contents of CBN (cannabinol) and CBG (cannabigerol).
Executives
Gurvinder Singh officer: Chief Executive Officer 1033 GEORGE HANOSH BOULEVARD, GRANTS NM 87020
Saleem Elmasri officer: Chief Financial Officer 450 PARK AVE SOUTH, 3RD FLOOR, NEW YORK NY 10016
Lynn Stockwell director, 10 percent owner 401 EAST LAS OLAS BLVD., SUITE 1400, FT. LAUDERDALE FL 33301
Seamus Mcauley officer: Chief Executive Officer 1033 GEORGE HANOSH BOULEVARD, GRANTS NM 87020
Edward A. Robinson director, officer: Chief Executive Officer 401 EAST LAS OLAS BLVD., SUITE 1400, FT. LAUDERDALE FL 33301
Alfie Morgan director 401 EAST LAS OLAS BLVD., SUITE 1400, FT. LAUDERDALE FL 33301
Dean Vallore director 401 EAST LAS OLAS BLVD., SUITE 1400, FT. LAUDERDALE FL 33301
Terry Rafih director, 10 percent owner 401 EAST LAS OLAS BLVD., SUITE 1400, FT. LAUDERDALE FL 33301
Robert Arnone director 401 EAST LAS OLAS BLVD., SUITE 1400, FT. LAUDERDALE FL 33301
E. Mailloux Enterprises, Inc. 10 percent owner 3129 MARENTETTE AVENUE, UNIT 2, WINDSOR A6 N8X 4G1

Bright Green (Bright Green) Headlines

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