Important disclosures for Moneyweb flash notes
Guide to share price research recommendations
Forecasts are undertaken by Intellidex Investment Research and valuations determined on the basis of discounted free cash-flow to the firm modelling. Where cash-flows are negative or discounting cannot be performed for some reason, price multiple comparatives are used. In cases where the average cost of capital is less than the long-term growth estimate, constant growth model or exit multiple approach (enterprise value-to-Ebitda) may be applied. A buy recommendation is made if the intrinsic value is 10% higher than the current share price, a sell recommendation if it is 10% lower than current share price, a hold recommendation if it is in between.
The risk measure is a subjective determination guided by the beta of the share price. We also examine the financial and operating leverage of the business and assess wider macroeconomic conditions.
This research note is prepared for Moneyweb Holdings Ltd, financial services website by Intellidex (Pty) Ltd, a company registered in South Africa, registration number: 2008/005881/07 (“Intellidex”). Intellidex is an independent company contracted to Moneyweb. The views expressed in this note are those of Intellidex and/or its analysts and not necessarily the views of Moneyweb or any officer or agent thereof.
This research report was issued by Intellidex (Pty) Ltd. Intellidex aims to deliver impartial and objective assessments of securities, companies or other subjects. This document is issued for information purposes only and is not an offer to purchase or sell investments or related financial instruments. Individuals should undertake their own analysis and/or seek professional advice based on their specific needs before purchasing or selling investments. The information contained in this report is based on sources that Intellidex believes to be reliable, but Intellidex makes no representations or warranties regarding the completeness, accuracy or reliability of any information, facts, estimates, forecasts or opinions contained in this document. The information, opinions, estimates, assumptions, target prices and forecasts could change at any time without prior notice. Intellidex is under no obligation to inform any recipient of this document of any such changes. Intellidex, its directors, officers, staff, agents or associates shall have no liability for any loss or damage of any nature arising from the use of this document.
Remuneration and conflicts
The opinions or recommendations contained in this report represent the true views of the analyst(s) responsible for preparing the report. The analyst’s remuneration is not affected by the opinions or recommendations contained in this report, although his/her remuneration may be affected by the overall quality of their research, feedback from clients and the financial performance of Intellidex (Pty) Ltd.
Intellidex staff may hold positions in financial instruments or derivatives thereof which are discussed in this document. Trades by staff are subject to Intellidex’s code of conduct which can be obtained by emailing firstname.lastname@example.org.
Intellidex may also have, or be seeking to have, a consulting or other professional relationship with the companies mentioned in this report.