Editing Alpha Financial Markets Consulting plc
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== Summary == | == Summary == | ||
== Operations == | == Operations == | ||
=== How did the idea of the company come about? === | === How did the idea of the company come about? === | ||
=== What's the mission of the company? === | === What's the mission of the company? === | ||
The mission of the company is to help businesses maximise their profits, in particular by being recognised as the leading global consultancy to the asset management, wealth management and insurance industries. | |||
=== What's the company's main offering(s)? === | === What's the company's main offering(s)? === | ||
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==== What's a key solution to the problem? ==== | ==== What's a key solution to the problem? ==== | ||
The solution is | The solution is consultancy services. What makes the consultancy services unique is that it's focused on the asset management, wealth management and insurance industries. Research suggests that asset management, wealth management and insurance industries focused consultancy services enable asset managers, wealth managers and insurance companies, respectively, to make better decisions, ultimately leading the companies to improve/maximise their profits. | ||
Client service proposition | Client service proposition | ||
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Alpha Financial Markets Consulting | Alpha Financial Markets Consulting | ||
The group provides advice to its clients in the asset | The group provides advice to its clients in the asset and wealth management industry based on its sector experience and deep knowledge of the needs of specific industry participants. The group’s financial markets consulting proposition extends to working with clients across the four primary areas of: | ||
# Strategy and advisory | # Strategy and advisory | ||
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Projects classification | Projects classification | ||
Projects typically span multiple service lines and vary in size, duration and nature | Projects typically span multiple service lines and vary in size, duration and nature. The group undertakes projects across most of the asset and wealth management value chain and these fall into three categories: | ||
* | * Major programmes: these typically span more than one financial year, are multi-geography and would be valued in excess of £2 million. There are usually 2 to 5 major programmes running in any year. | ||
* | * Large programmes: these are typically up to a year in duration, single or multi regions and valued between £1 million and £2 million. There are circa 10 large programmes undertaken in a year. | ||
* | * Small programmes: these are typically single region, focused programmes valued at less than £1 million. There are usually more than 100 small programmes undertaken in a year. | ||
* The group principally prices its consulting services on a time and materials basis using daily charge out rates, but also uses fixed price contracts on occasions (typically in continental Europe). | |||
Client segments | Client segments | ||
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Asset Managers | Asset Managers | ||
The group has provided services to over 200 clients across the globe, including | The group has provided services to over 200 clients across the globe, including 17 of the 20 largest global asset managers by AUM and 60% of the top 50 as at 31 March 2017. In addition to traditional asset managers, Alpha also advises insurance-backed and pension-based businesses. The group’s clients cover the whole spectrum of institutional, intermediary and retail asset managers. | ||
Wealth Managers | Wealth Managers | ||
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Finally, Alpha supports a range of other providers to the asset and wealth management industry, including software vendors and data providers. Engagements with these clients include new product development, market reviews and support responding to market requests for proposal. | Finally, Alpha supports a range of other providers to the asset and wealth management industry, including software vendors and data providers. Engagements with these clients include new product development, market reviews and support responding to market requests for proposal. | ||
Key strengths of the | Key strengths of the Group | ||
As a leading global consultancy provider to the asset and wealth management industry, the directors believe that Alpha is well-positioned for continued growth in a marketplace shaped by the primary market drivers of an underlying growth in AUM, rising cost pressures, regulatory change and continuing consolidation, all of which are underpinned by technological change in the asset and wealth management industry. The group’s approach is to create value for clients by leveraging its extensive industry knowledge, proprietary database, product expertise and application of technology and digital innovation to deliver a targeted service offering across most of the asset and wealth management value chain from portfolio management through sales, distribution and the middle and back office. This approach allows the group to help its clients improve key aspects of their business. | As a leading global consultancy provider to the asset and wealth management industry, the directors believe that Alpha is well-positioned for continued growth in a marketplace shaped by the primary market drivers of an underlying growth in AUM, rising cost pressures, regulatory change and continuing consolidation, all of which are underpinned by technological change in the asset and wealth management industry. The group’s approach is to create value for clients by leveraging its extensive industry knowledge, proprietary database, product expertise and application of technology and digital innovation to deliver a targeted service offering across most of the asset and wealth management value chain from portfolio management through sales, distribution and the middle and back office. This approach allows the group to help its clients improve key aspects of their business. | ||
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'''Focused industry proposition delivering true expertise''' – Alpha has developed specialised expertise and experience in the asset and wealth management industry. This industry focus enables the group’s professionals to provide offerings on a global basis with a comprehensive understanding of the market, business issues and relevant technologies, and ultimately deliver tailored solutions for each client. | '''Focused industry proposition delivering true expertise''' – Alpha has developed specialised expertise and experience in the asset and wealth management industry. This industry focus enables the group’s professionals to provide offerings on a global basis with a comprehensive understanding of the market, business issues and relevant technologies, and ultimately deliver tailored solutions for each client. | ||
'''Strong reputation and deep relationships with global clients''' – Alpha has served a large proportion of the world’s largest and most successful asset managers and wealth management companies, including | '''Strong reputation and deep relationships with global clients''' – Alpha has served a large proportion of the world’s largest and most successful asset managers and wealth management companies, including 17 of the 20 largest global asset managers by AUM and 60% of the top 50 as at 31 March 2017. | ||
'''Broad, diversified and expanding base of clients''' – The group’s business extends to delivering a range of product offerings to global asset managers, wealth managers, asset owners and third party administrators. Revenue is diversified across a growing client base with no single client accounting for more than 10% in the year ended 31 March | '''Broad, diversified and expanding base of clients''' – The group’s business extends to delivering a range of product offerings to global asset managers, wealth managers, asset owners and third party administrators. Revenue is diversified across a growing client base with no single client accounting for more than 10% in the year ended 31 March 2017. | ||
'''Intellectual property''' – The group combines industry leading consulting expertise with detailed proprietary benchmarking data developed since the creation of the group, which has enabled it to develop trusted, long term relationships with clients. This information is held by the company, preventing the company from becoming dependent on one particular individual or group of individuals. | '''Intellectual property''' – The group combines industry leading consulting expertise with detailed proprietary benchmarking data developed since the creation of the group, which has enabled it to develop trusted, long term relationships with clients. This information is held by the company, preventing the company from becoming dependent on one particular individual or group of individuals. | ||
'''Alpha’s people and culture''' – The group competes with the largest consultancy companies globally for talent, operating a business in which people are central to the delivery of its growth strategy. Alpha targets both graduates and experienced professionals and has developed a strong culture which attracts high calibre consultants and places people at the heart of the business. Further, Alpha has created an environment in which people are rewarded for both their own contribution and for the success of the business as a whole. The directors believe that Alpha’s reputation is key to attracting those talents. To develop and support high performance, the directors believe that the group has developed a rigorous recruitment process and comprehensive training and development plan, offers a market leading compensation package including profit share arrangements, and has a strong focus on employee wellbeing. This results in Alpha having attained what the directors believe to be an industry leading unmanaged consultant attrition rate of less than 5% in the year ended 31 March | '''Alpha’s people and culture''' – The group competes with the largest consultancy companies globally for talent, operating a business in which people are central to the delivery of its growth strategy. Alpha targets both graduates and experienced professionals and has developed a strong culture which attracts high calibre consultants and places people at the heart of the business. Further, Alpha has created an environment in which people are rewarded for both their own contribution and for the success of the business as a whole. The directors believe that Alpha’s reputation is key to attracting those talents. To develop and support high performance, the directors believe that the group has developed a rigorous recruitment process and comprehensive training and development plan, offers a market leading compensation package including profit share arrangements, and has a strong focus on employee wellbeing. This results in Alpha having attained what the directors believe to be an industry leading unmanaged consultant attrition rate of less than 5% in the year ended 31 March 2017. | ||
'''Strong track record of organic growth''' – Alpha has delivered a consistent record of growth with a revenue CAGR of | '''Strong track record of organic growth''' – Alpha has delivered a consistent record of growth with a revenue CAGR of 37% from £6.71 million for the year ended 31 March 2011 to £43.56 million for the year ended 31 March 2017. This significant revenue growth has been accompanied by a CAGR in adjusted EBITDA of 47% over the same period, reaching £8.55 million for the year ended 31 March 2017. | ||
'''Proven, experienced high-calibre management team''' – The group benefits from a high-calibre senior management team with substantial and diverse experience, led by Euan Fraser, the group’s Chief Executive Officer. Together, the senior management team has driven the growth and strong financial performance of the business over the past several years and has a proven track record of delivering results. | '''Proven, experienced high-calibre management team''' – The group benefits from a high-calibre senior management team with substantial and diverse experience, led by Euan Fraser, the group’s Chief Executive Officer. Together, the senior management team has driven the growth and strong financial performance of the business over the past several years and has a proven track record of delivering results. | ||
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Building on the significant growth already achieved in recent years, the directors believe that the group has the potential to capture a significantly larger market share of its chosen markets. The directors believe that the competitive advantages as described above position the group to deliver profitable growth. | Building on the significant growth already achieved in recent years, the directors believe that the group has the potential to capture a significantly larger market share of its chosen markets. The directors believe that the competitive advantages as described above position the group to deliver profitable growth. | ||
=== Which are the main competitors of the product? === | === Which are the main competitors of the product? === | ||
A key way to determine an offering’s closest competitors is by looking at other offerings that are targeting the same or similar target audience (i.e. | A key way to determine an offering’s closest competitors is by looking at other offerings that are targeting the same or similar target audience (i.e. ccc) and providing or aiming to provide the same core benefit (i.e. more/maximum business profits, in particular ccc), and then ranking the offerings in terms of the total amount of time spent using and/or money spent purchasing the offerings. With that said, we view that the closest competitors of the Alpha FMC offering(s) are ccc, ccc and ccc. A detailed comparison between Alpha FMC and its main competitors are shown in the table below. | ||
Alpha operates in a competitive global market and competes with several organisations that offer services similar to those offered by the group. Competitors include the advisory practices of major accounting firms, global consulting firms and boutique consulting businesses. | Alpha operates in a competitive global market and competes with several organisations that offer services similar to those offered by the group. Competitors include the advisory practices of major accounting firms, global consulting firms and boutique consulting businesses. | ||
The group has been able to successfully compete against these firms by providing specialist expertise to the asset and wealth management industry, and by consistently delivering a high quality service which attracts repeat business and fosters long term relationships. Against the boutique consulting businesses, Alpha is able to differentiate itself through its global offering, relationships with the largest fund managers and reputation for high quality and efficient service. Against the global consulting firms, the group differentiates itself with a specialised industry offering and tailored client solutions. Alpha is able to set itself apart from the advisory practices of major accounting firms through its specialist sector focus and by deploying highly experienced industry consultants to client engagements, who have demonstrable track records of delivering complex projects. This is made possible through the group’s ability to attract and retain high calibre consultants. | The group has been able to successfully compete against these firms by providing specialist expertise to the asset and wealth management industry, and by consistently delivering a high quality service which attracts repeat business and fosters long term relationships. Against the boutique consulting businesses, Alpha is able to differentiate itself through its global offering, relationships with the largest fund managers and reputation for high quality and efficient service. Against the global consulting firms, the group differentiates itself with a specialised industry offering and tailored client solutions. Alpha is able to set itself apart from the advisory practices of major accounting firms through its specialist sector focus and by deploying highly experienced industry consultants to client engagements, who have demonstrable track records of delivering complex projects. This is made possible through the group’s ability to attract and retain high calibre consultants. | ||
How does Alpha's fees compare to its peers? | |||
=== What is the main way that the company expects to make money? === | === What is the main way that the company expects to make money? === | ||
=== What’s the size of the company target market? === | === What’s the size of the company target market? === | ||
===Total Addressable Market=== | ===Total Addressable Market=== | ||
Here, the total addressable market (TAM) is defined as the global | Here, the total addressable market (TAM) is defined as the global consultancy market, and based on a number of assumptions, it is estimated that the size of the market as of today (23rd January 2023), in terms of revenue, is $590 billion<ref>0.61% of global GDP.</ref>. | ||
===Serviceable Available Market=== | |||
The serviceable available market (SAM) is defined as the global asset management, wealth management and insurance consultancy market, and based on a number of assumptions, it is estimated that the size of the market as of today (23rd January 2023), in terms of revenue, is $59 billion<ref>=10% of the global consultancy market.</ref>. | |||
The asset and wealth management industry has grown significantly since 2008, with global aggregate assets under management standing at approximately $69.1 trillion at the end of 2016, compared to $38.5 trillion at the end of 2008. | |||
Whilst overall AUM is growing, the asset and wealth management industry is experiencing challenges stemming from regulatory changes and cost pressures from the regulators and end clients. These factors are driving an increased focus by asset and wealth managers on improving systems, data quality and operational processes, in order to gain a competitive advantage, generate above average returns and reduce costs. This in turn has helped drive demand for the management consulting services provided to the asset and wealth management industry, across the spectrum of front, middle and back office functions. | |||
The industry is subject to a wide range of regulatory and risk management considerations, which the directors believe will continue to drive growth in consulting services. In addition to the ever more demanding regulatory environment, the industry is having to react to requests from institutional and retail customers for greater transparency in reporting, engagement and accountability, which in turn is driving a growth in demand for more effective data systems and processes. | |||
The pressure on margins within the asset and wealth management industry has also resulted in significant consolidation in recent years, as fund managers seek to increase assets under management, drive synergies and ultimately generate better returns through mergers and acquisitions (“M&A”). | |||
The value of global M&A deals completed in the sector totalled approximately $34.9 billion in 2015 and $71.3 billion in 2016, with many market commentators expecting continued consolidation through M&A in the asset and wealth management industry in the near future. This has created substantial opportunities and areas of growth for Alpha as it continues to provide M&A integration, operational and outsourcing consultancy services to increasingly larger and more complex fund managers. | |||
===Serviceable Obtainable Market=== | |||
Here, the serviceable obtainable market (SOM) is defined as the United Kingdom asset management, wealth management and insurance consultancy market, and based on a number of assumptions, it is estimated that the size of the market as of today (23rd January 2023), in terms of revenue, is $2.17 billion<ref>= UK GDP x consultancy as a proportion of GDP x financial services as a proportion of GDP | |||
= $3.131 trillion x 0.84% x 8.3%.</ref>. | |||
=== What are the main achievements of the company? === | === What are the main achievements of the company? === | ||
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* The company has the largest dedicated team in the industry, with in excess of 900 consultants, globally. | * The company has the largest dedicated team in the industry, with in excess of 900 consultants, globally. | ||
* It operates from 16 client-facing offices, across the United Kingdom, North America, Europe and APAC. | * It operates from 16 client-facing offices, across the United Kingdom, North America, Europe and APAC. | ||
=== What's the business strategy of the company? === | === What's the business strategy of the company? === | ||
The group’s strategy is to continue to grow in both existing and new jurisdictions | The group’s strategy is to continue to grow in both existing and new jurisdictions. The group has a strong track record of EBITDA growth and intends to further grow its business in the following ways: | ||
'''Expand existing services in existing markets''' – The group currently serves clients in multiple countries and the directors consider that there is substantial scope to grow within these markets. In addition to winning new clients, the group also aims to grow by extending the services delivered to existing clients, or by serving other client group entities. | '''Expand existing services in existing markets''' – The group currently serves clients in multiple countries and the directors consider that there is substantial scope to grow within these markets. In addition to winning new clients, the group also aims to grow by extending the services delivered to existing clients, or by serving other client group entities. | ||
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=== Who are the key members of the team? === | === Who are the key members of the team? === | ||
The | The company is led by the person who believes in the mission of the company the most: the creator of the company mission (i.e. ccc). Between them, the members of the team have helped companies raise a significant amount of finance and build some of the world's most renowned digital platforms. | ||
==== Executive ==== | ==== Executive ==== | ||
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Euan keeps the skills to support and deliver the Group’s strategy up to date through his role as Chief Executive Officer of a global consulting firm operating within the financial services sector. In this role, Euan has to understand and manage the interests of a range of stakeholders, including employees, clients, competitors and investors. Euan maintains a number of strong industry relationships that involve sharing of knowledge and perspectives. | Euan keeps the skills to support and deliver the Group’s strategy up to date through his role as Chief Executive Officer of a global consulting firm operating within the financial services sector. In this role, Euan has to understand and manage the interests of a range of stakeholders, including employees, clients, competitors and investors. Euan maintains a number of strong industry relationships that involve sharing of knowledge and perspectives. | ||
===== Global Chief Financial Officer: John Paton ===== | ===== Global Chief Financial Officer: John Paton ===== | ||
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=== How much does the company expect to make over the next five years? === | === How much does the company expect to make over the next five years? === | ||
*Most recent full-year results | |||
In the 12-months period ended 31st March 2022, revenue increased by 61.1% to £158.0 million (FY21: £98.1 million), driven almost entirely by net fee income (99.9%) | **Profit and loss | ||
***Non-adjusted | |||
****In the 12-months period ended 31st March 2022, revenue increased by 61.1% to £158.0 million (FY21: £98.1 million), driven almost entirely by net fee income (99.9%). | |||
****Gross profit increased by 70.4% to 59.4 million (FY21: 34.8 million). | |||
****Profit before tax increased by 65.9% to £14.9 million (FY21: £9.0 million). | |||
****Basic earnings per share increased by 33.7% to 7.69p (FY21: 5.75p). | |||
***Adjusted | |||
****On a like-for-like basis (i.e. excluding the acquisition of Lionpoint), revenue increased by 31.3% to £ccc million (FY22: £ccc million). | |||
****Adjusted EBITDA increased by 56.0% to £33.9 million (FY21: £21.7 million). | |||
****Adjusted profit before tax increased by 62.2% to £31.8 million (FY21: £19.6 million). | |||
****Adjusted earnings per share increased by 43.9% to 21.46p (FY21: 14.91p) | |||
** Balance sheet | |||
***Net current assets | |||
****Net current assets increased by 21.5% to £27.2 million (FY21: £22.4 million). | |||
***Cash | |||
****Cash increased by 86.7% to £63.5 million (FY21: £34.0 million). | |||
***Net assets | |||
****Net assets increased by 40.7% to £132.7 million (FY21: £94.4 million). | |||
***Debt | |||
****No debt. | |||
***Net debt | |||
****Net cash increased by 86.7% to £63.5 million (FY21: £34.0 million). | |||
**Cash flow | |||
***CFO | |||
****Non-adjusted | |||
*****Net cash generated from operating activities increased by 59.3% to £33.5 million (FY21: £21.0 million). | |||
****Adjusted | |||
*****Adjusted cash generated from operating activities ccc by ccc% to £ccc million (FY21: £ccc million). | |||
***CIO | |||
****Net cash used from investing activities increased by 8x to £24.5 million (FY21: £2.9 million). | |||
***CFO | |||
****Net cash from financing activities switched to using £20.0 million (FY21: £8.5 million). | |||
****Final dividend increased by 55% to 7.50p per share (FY21: 4.85p). | |||
*Most recent interims | |||
**Profit and loss | |||
***Non-adjusted | |||
****In the six month period ended 30th September 2022, revenue increased by 57.3% to £107.6 million (H1 FY22: £68.4 million), driven almost entirely by higher net fee income (net fee income accounts for 99.4% of revenue), in particular from the North America region (the North America region accounts for 41.4% of net fee income). Net fee income jumped by 56.5% to £107.0 million (H1 FY22: £68.4 million). | |||
****The number of client relationships increased by 19% to 787 clients (H1 22: 662), boosted by both new clients wins and client retention. | |||
****Gross profit increased by 45.3% to £38.4 million (H1 FY22: £26.5 million), equating to a gross profit margin of 35.9% (H1 FY22: ccc%). | |||
****The number of consultants increased by 40.4% to 921 consultants (H1 FY22: 656 consultants), driven by client demand. The director headcount increased by 11% to 97 directors (H1 FY22: 88 directors). | |||
****Profit before tax increased by 235.6% to £14.2 million (H1 22: £4.2 million). | |||
****Basic earnings per share increased by 10x to 9.10p (H1 22: 0.87p). | |||
***Adjusted | |||
****On a like-for-like basis (i.e. excluding the acquisition of Lionpoint), revenue increased by £ccc million (H1 22: £ccc million). Net fee income increased by 45.3% to £ccc million (H1 22: £ccc million). | |||
****Adjusted EBITDA increased by 45.6% to £22.5 million (H1 FY22: £15.4 million), equating to a margin of 21.5% (H1 FY22: 22.6%). | |||
****Adjusted profit before tax increased by 47.2% to £21.3 million (H1 22: £14.4 million). | |||
****Adjusted earnings per share increased by 43.0% to 14.09p (H1 22: 9.85p). | |||
** Balance sheet | |||
***Net current assets | |||
****Net current assets decreased by 32.0% to £18.5 million (H2 22: £27.2 million). | |||
***Cash | |||
****Cash decreased by 24.7% to £47.8 million (H2 22: £63.5 million). | |||
***Net assets | |||
****Net assets increased by 11.4% to £147.9 million (H2 22: £132.7 million). | |||
***Debt | |||
****Debt increased to £7.5 million (H2 22: nil). The company has access to a £20.0m revolving credit facility ("RCF"), enabling the company to further improve its liquidity if required. | |||
***Net debt | |||
****Net cash decreased by 36.5% to £40.3 million (H2 22: £63.5 million). | |||
**Cash flow | |||
*** CFO | |||
****Non-adjusted | |||
*****Net cash generated from operating activities decreased by 63.3% to £2.2 million (H1 FY22: £6.0 million) as the improved profits were outweighed by higher working capital requirements. | |||
****Adjusted | |||
*****Adjusted cash generated from operating activities decreased by 50.6% to £4.2 million (H1 FY22: £8.5 million). | |||
***CIO | |||
****Net cash used from investing activities decreased by 10.4% to £21.5 million (H1 FY22: £24.0 million). A significant portion of the cash (96%) was used to pay for the (Lionpoint) acquisition. | |||
***CFO | |||
****Net cash from financing activities switched to using £3.3 million (H1 FY22: £23.8 million), mainly because no new shares were issued during the period. | |||
****Interim dividend increased by 27.6% to 3.70p per share (H1 FY22: 2.90p). | |||
**Other | |||
***The company added that in-line with its strategic objectives, it will continue to focus on growing the business through the deepening of its service offering and through geographic expansion. | |||
***The company added that its confident in the outlook of the second half of the current financial year and beyond. | |||
==== What are the financials? ==== | |||
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|+Financials | |||
==== What are the financials? ==== | |||
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| | |'''Year end date''' | ||
| | |'''31/12/2018''' | ||
| | |'''31/12/2019''' | ||
| | |'''31/12/2020''' | ||
| | |'''31/12/2021'''||'''31/12/2022'''||'''31/12/2023'''||'''31/12/2024'''||'''31/12/2025'''||'''31/12/2026''' | ||
| | |'''31/12/2027''' | ||
| | |'''31/12/2028''' | ||
| | |'''31/12/2029''' | ||
| | |'''31/12/2030''' | ||
| | |'''31/12/2031''' | ||
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| | |'''31/12/2034''' | ||
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| | |'''31/12/2037''' | ||
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| | |'''Forecast''' | ||
| | |'''Forecast''' | ||
| | |'''Forecast''' | ||
| | |'''Forecast''' | ||
|'''Forecast''' | |||
|'''Forecast''' | |||
|'''Forecast''' | |||
| | |'''Forecast''' | ||
| | |'''Forecast''' | ||
| | |'''Forecast''' | ||
| | |'''Forecast''' | ||
| | |'''Forecast''' | ||
| | |'''Forecast''' | ||
| | |'''Forecast''' | ||
| | |'''Forecast''' | ||
| | |'''Forecast''' | ||
| | |'''Forecast''' | ||
| | |- | ||
| | | colspan="45" |<div style="text-align: center;">'''Income statement'''</div> | ||
| | |||
| | |||
|- | |||
| | |||
|- | |||
| | | | ||
| | | | ||
Line 691: | Line 521: | ||
| | | | ||
|- | |- | ||
| | |Revenues (£'000) | ||
| | |NA | ||
| | |4 | ||
| | |1,147 | ||
| | |538|| 1,801||3,534||6,711||12,327||21,906 | ||
| | |37,665 | ||
| | |62,654 | ||
| | |100,833 | ||
| | |157,000 | ||
| | |236,506 | ||
| | |344,688 | ||
| | |486,019 | ||
| | |663,015 | ||
| | |875,059 | ||
| | |1,117,362 | ||
|1,380,364 | |||
|1,649,821 | |||
|1,907,756 | |||
|2,134,284 | |||
|2,310,068 | |||
|2,419,025 | |||
|2,450,751 | |||
|2,402,156 | |||
|2,277,961 | |||
|2,089,943 | |||
|1,855,094 | |||
| | |1,593,091 | ||
| | |1,323,605 | ||
| | |1,063,945 | ||
|827,415 | |||
|622,545 | |||
|453,170 | |||
| | |319,150 | ||
| | |217,456 | ||
|143,348 | |||
|91,423 | |||
|56,411 | |||
|33,675 | |||
|19,449 | |||
|10,868 | |||
|5,875 | |||
|3,073 | |||
|1,555 | |||
| | |761 | ||
| | |361 | ||
| | |165 | ||
| | |||
|1, | |||
|1, | |||
|1, | |||
|1, | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
|91, | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
|1 | |||
| | |||
| | |||
|- | |- | ||
| | |Gross profits (£'000) | ||
| | |NA | ||
| | |(763) | ||
| | |408 | ||
| | |(266) | ||
| | |1,351||2,651||5,033||9,245||16,430 | ||
| | |28,249 | ||
| | |46,990 | ||
| | |75,625 | ||
| | |117,750 | ||
| | |177,379 | ||
| | |224,047 | ||
| | |364,514 | ||
| | |497,262 | ||
| | |656,294 | ||
| | |726,285 | ||
| | |897,237 | ||
| | |907,401 | ||
| | |1,049,266 | ||
| | |1,173,856 | ||
| | |1,270,537 | ||
| | |1,330,464 | ||
| | |1,347,913 | ||
| | |1,321,186 | ||
| | |1,252,878 | ||
| | |1,149,469 | ||
| | |1,020,302 | ||
| | |716,891 | ||
| | |595,622 | ||
| | |478,775 | ||
| | |372,337 | ||
|280,145 | |||
|203,926 | |||
|143,617 | |||
|97,855 | |||
|64,506 | |||
|41,140 | |||
|1, | |25,385 | ||
|15,154 | |||
| | |8,752 | ||
|4,890 | |||
|2,644 | |||
|1,383 | |||
|700 | |||
|1,302 | |343 | ||
| | |162 | ||
| | |74 | ||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
|- | |- | ||
|( | |Operating profits (£'000) | ||
| | |NA | ||
|( | |(687) | ||
|( | |(2,819) | ||
|( | |(10,814)||1,081||2,121||4,026||7,396||13,144 | ||
| | |22,599 | ||
| | |37,592 | ||
| | |60,500 | ||
| | |94,200 | ||
|4, | |141,904 | ||
| | |172,344 | ||
| | |291,611 | ||
| | |397,809 | ||
|525,035 | |||
| | |558,681 | ||
| | |690,182 | ||
| | |659,928 | ||
|763,103 | |||
|853,714 | |||
| | |924,027 | ||
| | |967,610 | ||
| | |980,300 | ||
| | |960,862 | ||
| | |911,184 | ||
|835,977 | |||
|742,038 | |||
|477,927 | |||
|397,081 | |||
|319,184 | |||
|248,224 | |||
|186,763 | |||
|135,951 | |||
|95,745 | |||
|65,237 | |||
|43,004 | |||
|27,427 | |||
|16,923 | |||
| | |10,103 | ||
| | |5,835 | ||
| | |3,260 | ||
| | |1,763 | ||
| | |922 | ||
|466 | |||
|228 | |||
|108 | |||
|50 | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
|- | |- | ||
|Net | |Net profits (£'000) | ||
| | |NA | ||
| | |(551) | ||
|( | |(2,964) | ||
|( | |(12,487)||1,081||2,121||4,026||7,396|| 13,144 | ||
| | |22,599 | ||
| | |37,592 | ||
| | |60,500 | ||
| | |94,200 | ||
| | |141,904 | ||
| | |151,663 | ||
| | |256,618 | ||
| | |350,072 | ||
| | |462,031 | ||
| | |491,639 | ||
| | |607,360 | ||
| | |580,737 | ||
| | |671,530 | ||
| | |751,268 | ||
| | |813,144 | ||
| | |851,497 | ||
| | |862,664 | ||
| | |845,559 | ||
| | |801,842 | ||
|735,660 | |||
|652,993 | |||
|420,576 | |||
| | |349,432 | ||
| | |280,881 | ||
|218,437 | |||
|164,352 | |||
|119,637 | |||
|84,256 | |||
|57,408 | |||
|37,844 | |||
|24,136 | |||
|14,892 | |||
|8,890 | |||
|5,135 | |||
|2,869 | |||
|1,551 | |||
|811 | |||
|410 | |||
|201 | |||
|95 | |||
|44 | |||
|} | |||
==== What are the assumptions used to estimate the financial forecasts?==== | |||
{| class="wikitable" | |||
|+Key inputs | |||
!Description | |||
!Value | |||
!Commentary | |||
! | |- | ||
! | | colspan="3" | <div style="text-align: center;">'''Revenue'''</div> | ||
! | |- | ||
|What's the estimated current size of the total addressable market? | |||
|$590,000,000,000 | |||
|Here, the total addressable market (TAM) is defined as the global consultancy market, and based on a number of assumptions, it is estimated that the size of the market as of today (27th January 2023), in terms of revenue, is $590 billion. | |||
|- | |||
|What is the estimated company lifespan? | |||
|50 years | |||
|Research shows that the average lifespan of a large corporation is around 50 years.<ref>Stadler, Enduring Success, 3–5.</ref> | |||
|- | |- | ||
|' | |What's the estimated annual growth rate of the total addressable market over the lifecycle of the company? | ||
|3% | |||
|Research shows that the growth rate of the global consultancy market (i.e. the total addressable market) is similar to the growth rate of global gross domestic product, which has averaged (medium) around 3% per year in the last 20 years (2001 to 2022)<ref>https://www.macrotrends.net/countries/WLD/world/gdp-growth-rate</ref>. | |||
| | |- | ||
| | |What's the estimated company peak market share? | ||
|1% | |||
|We estimate that especially given the experienced team of the company, the peak market share of Alpha FMC is around 1%, and, therefore, suggests using the share amount here. As of 30th September 2022, Alpha FMC's current share of the market is 0.033%. | |||
|- | |||
|Which distribution function do you want to use to estimate company revenue? | |||
|Gaussian | |||
|Research suggests that the revenue pattern of companies is similar to the pattern produced by the Gaussian distribution function (i.e. the revenue distribution is bell shaped)<ref>http://escml.umd.edu/Papers/ObsCPMT.pdf</ref>, so we suggest using that function here. | |||
|- | |||
|What's the estimated standard deviation of company revenue? | |||
| 5.5 years | |||
| | |Another way of asking this question is this way: within how many years either side of the mean does 68% of revenue occur? Based on Alpha FMC's current revenue amount (i.e. $250 million) and Alpha FMC's estimated lifespan (i.e. 50 years) and Alpha FMC's estimated current stage of its lifecycle (i.e. growth stage), the we suggest using five and a half years (i.e. 68% of all sales happen within five and a half years either side of the mean year), so that's what's used here. | ||
|' | |- | ||
| | | colspan="3" |'''<div style="text-align: center;">Growth stages</div>''' | ||
|' | |- | ||
|How many main stages of growth is the company expected to go through? | |||
| 4 stages | |||
| | |Research suggests that a company typically goes through four distinct stages of cash flow growth.<ref>Levie J, Lichtenstein BB (2010) A terminal assessment of stages theory: Introducing a dynamic approach to entrepreneurship. Entrepreneurship: Theory & Practice 34(2): 317–350. <nowiki>https://doi.org/10.1111/j.1540-6520.2010.00377.x</nowiki></ref> Research also shows that incorporating those stages into the discounted cash flow model improves the quality of the model and, ultimately, the quality of the value estimation.<ref>Stef Hinfelaar et al.:, 2019.</ref> In addition, research shows that a key way to determine the stage which a company is in is by examining the cash flow patterns of the company.<ref>Dickinson, 2010.</ref> A summary of the economic links to cash flow patterns can be found in the appendix of this report. We estimate that with Alpha FMC's operating cash flows positive (+), investing cash flows negative (-) and its financing cash flows positive (+), the company is in the second stage of growth (i.e. the 'growth' stage), and, therefore, it has a total of three main stages of growth remaining. | ||
| | |- | ||
| | |What proportion of the company lifecycle is represented by growth stage 1? | ||
| | |30% | ||
|Research suggests 30%.<ref name=":6">http://escml.umd.edu/Papers/ObsCPMT.pdf</ref> | |||
| | |||
|' | |||
| | |||
|''' | |||
| | |||
| | |||
|''' | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
|- | |- | ||
| | |What proportion of the company lifecycle is represented by growth stage 2? | ||
| | |10% | ||
| | |Research suggests 10%.<ref name=":6" /> | ||
| | |- | ||
| | | What proportion of the company lifecycle is represented by growth stage 3? | ||
| | |20% | ||
| | | Research suggests 20%.<ref name=":6" /> | ||
| | |- | ||
| | |What proportion of the company lifecycle is represented by growth stage 4? | ||
| | |40% | ||
| | |Research suggests 40%.<ref name=":6" /> | ||
| | |- | ||
| | | colspan="3" |'''<div style="text-align: center;">Growth stage 2</div>''' | ||
|''' | |- | ||
| | |Cost of goods sold as a proportion of revenue (%) | ||
| | |35% | ||
| | |Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7">http://people.stern.nyu.edu/adamodar/pdfiles/papers/younggrowth.pdf</ref>, and the margin for its peers is 35%. | ||
|' | |- | ||
| | |Operating expenses as a proportion of revenue (%) | ||
| | |15% | ||
| | |Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the margin for its peers is 15%. | ||
|' | |- | ||
| | |Tax rate (%) | ||
| | |12% | ||
| | |Research suggests that it's best to use a similar rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the rate for its peers is 12%. | ||
|' | |- | ||
| | |Depreciation and amortisation as a proportion of fixed capital (%) | ||
| | |10% | ||
| | |Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the margin for its peers is 10%. | ||
|- | |||
|Fixed capital as a proportion of revenue (%) | |||
|10% | |||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the amount for its peers is 10%. | |||
|- | |||
|Working capital as a proportion of revenue (%) | |||
|15% | |||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the amount for its peers is 15%. | |||
|' | |||
| | |||
| | |||
| | |||
|' | |||
| | |||
| | |||
| | |||
|' | |||
|- | |- | ||
| | |Net borrowing ($000) | ||
|Zero | |||
|We suggest that for simplicity, the net borrowing figure is zero. | |||
| | |||
| | |||
|- | |- | ||
| | |Interest amount ($000) | ||
| | |Zero | ||
| | |We suggest that for simplicity, the interest amount figure is zero. | ||
| | |- | ||
| | | colspan="3" |'''<div style="text-align: center;">Growth stage 3</div>''' | ||
| | |- | ||
| | |Cost of goods sold as a proportion of revenue (%) | ||
| | |45% | ||
| | |Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the margin for its peers is 45%. | ||
| | |- | ||
| | |Operating expenses as a proportion of revenue (%) | ||
| | |15% | ||
| | |Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the margin for its peers is 15%. | ||
| | |- | ||
| | |Tax rate (%) | ||
| | |12% | ||
|Research suggests that it's best to use a similar rate as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the rate for its peers is 12%. | |||
|3, | |||
|- | |- | ||
| | |Depreciation and amortisation as a proportion of fixed capital (%) | ||
| | |10% | ||
|( | |Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the amount for its peers is 10%. | ||
| | |- | ||
|( | |Fixed capital as a proportion of revenue (%) | ||
| | |10% | ||
| | |Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the amount for its peers is 10%. | ||
| | |- | ||
| | |Working capital as a proportion of revenue (%) | ||
| | |15% | ||
| | |Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the amount for its peers is 15%. | ||
| | |- | ||
| | |Net borrowing ($000) | ||
| | |Zero | ||
| | |We suggest that for simplicity, the net borrowing figure is zero. | ||
| | |- | ||
| | |Interest amount ($000) | ||
| | |Zero | ||
| | |We suggest that for simplicity, the interest amount figure is zero. | ||
| | |- | ||
| | | colspan="3" |'''<div style="text-align: center;">Growth stage 4</div>''' | ||
| | |- | ||
| | |Cost of goods sold as a proportion of revenue (%) | ||
| | |55% | ||
| | |Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the margin for its peers is 55%. | ||
| | |- | ||
| | |Operating expenses as a proportion of revenue (%) | ||
| | |15% | ||
| | |Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the margin for its peers is 15%. | ||
| | |- | ||
| | |Tax rate (%) | ||
| | |12% | ||
| | |Research suggests that it's best to use a similar rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the rate for its peers is 12%. | ||
| | |- | ||
|Depreciation and amortisation as a proportion of fixed capital (%) | |||
| | |10% | ||
| | |Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the amount for its peers is 10%. | ||
| | |||
|4, | |||
|- | |- | ||
| | |Fixed capital as a proportion of revenue (%) | ||
| | | 10% | ||
|( | |Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the amount for its peers is 10%. | ||
| | |- | ||
|( | |Working capital as a proportion of revenue (%) | ||
| | | 15% | ||
| | |Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the amount for its peers is 15%. | ||
| | |- | ||
| | |Net borrowing ($000) | ||
| | |Zero | ||
| | |We suggest that for simplicity, the net borrowing figure is zero. | ||
| | |- | ||
| | |Interest amount ($000) | ||
| | |Zero | ||
|We suggest that for simplicity, the interest amount figure is zero. | |||
|} | |||
=== What are the key risks of investing in the company? === | |||
As with any investment, investing in Alpha FMC carries a level of risk. Overall, based on the Alpha FMC's adjusted beta (i.e. 1.139)<ref>Research shows that an investment has two main types of risks: 1) non-systematic and 2) systematic. Systematic risk is the risk related to the overall market, and non-systematic risk is the risk that's specific to an individual investment. Evidence shows that taking on non-systematic risk is inefficient, and it's, therefore, best to eliminate it; and in most cases, elimination is fairy easy to do [by holding a diversified portfolio of investments (i.e. around 15 investments)]. Accordingly, when assessing the riskiness of an investment, it’s best to look at the systematic risk only (i.e. ignore the non-systematic risk). A key measure of systematic risk is beta, and a main way to determine the riskiness of an investment is to compare the beta of the investment with the beta of the market, which is 1. For example, Supply@ME Capital's adjusted beta (5 years, monthly data) is 4.61, and is, accordingly, 561% above the market beta (of 1); assuming that a 'high' level of riskiness is 50% or more above the market beta, then the riskiness of investing in Supply@ME Captial is considered to be 'high' (561%>50%). For estimating an asset's beta, in terms of time period, and frequency of observations, the most common choice is five years of monthly data, yielding 60 observations. One study of U.S. stocks found support for five years of monthly data over alternatives. An argument can be made that the 2 years, weekly data can be especially appropriate in fast growing markets. The beta value in a future period has been found to be on average closer to the mean value of 1.0, the beta of an average-systematic-risk security, than to the value of the raw beta. Because valuation is forward looking, it is logical to adjust the raw beta so it more accurately predicts a future beta.</ref>, the degree of risk associated with an investment in Alpha FMC is 'medium'. | |||
Here, to estimate the adjusted beta, we used the iShares MSCI World ETF to represent the market portfolio; and in terms of the time period and frequency of observations, we used five years of monthly data (i.e. 60 observations in total), which is supported by a study and is the most common choice. We note that the company in its current state was only really formed (following a reverse takeover) on 27th March 2020<ref>Officially, the company was formed on 1st March 2000 (i.e. almost 23 years ago).</ref>, and, therefore, the numbers of available data observations is less than what's typically used in the five years of monthly data beta calculation (i.e. 33 observations vs. 60 observations). The beta value in a future period has been found to be on average closer to the mean value of 1.0, and because valuation is forward-looking, it is logical to adjust the raw beta so it more accurately predicts a future beta. In addition, here, we have assumed that for an investment to be considered 'medium' risk, it must have a beta value of between 0.5 and 1.5. Further information about the beta ratings can be found in the appendix section of this report. | |||
The key risks can be found below. For us, currently, the biggest risk to the valuation of the company relates to the company's ability (and willingness) to take the appropriate risk to maintain the growth of the business. | |||
==== Risks relating to the group's business and the industry in which it operates ==== | |||
* Ability to retain key personnel and senior management | |||
* Low barriers to entry | |||
* Concentration of key customers | |||
* Revenue growth is partly reliant on attracting new personnel to expand existing services and lead new service offerings | |||
* Revenue growth is also reliant on ability to cross sell and up sell new services to existing clients and to win new clients | |||
* Revenue growth is sensitive to selling major and large scale projects | |||
* Ability to maintain quality of service and fulfil obligations on client contracts | |||
* Technological change and reliability | |||
* Geography | |||
* Currency and exchange rates | |||
* Regulatory environment | |||
* Training and risk management | |||
* Cash collection and bad debt | |||
* Funding and use of proceeds of the Placing | |||
* Macroeconomic conditions | |||
* Tax risks | |||
* Use of contractors | |||
* Utilisation rates of consultants | |||
* Relationships with technology platforms and service providers | |||
==== Risks relating to the shares ==== | |||
* Share price volatility and liquidity | |||
* Investment risk | |||
* Dilution | |||
* Dividends may not be paid | |||
=== How much can I expect to make from an investment in the company? === | |||
==== What's the expected return of an investment in the company? ==== | |||
ccc | |||
| | |||
| | ==== What are the assumptions used to estimate the return? ==== | ||
| | ==== What are the assumptions used to estimate the return figure? ==== | ||
| | |||
| | {| class="wikitable" | ||
| | |+ Key inputs | ||
!Description | |||
!Value | |||
!Commentary | |||
|- | |||
| Which valuation model do you want to use? | |||
|Discounted cash flow | |||
| | |Research suggests that in terms of estimating the expected return of an investment over a period of 12-months or more, the approach that is more accurate is the discounted cash flow approach<ref name=":5">Demirakos et al., 2010; Gleason et al., 2013</ref>, so that's the approach that we suggest to use here; nevertheless, for completeness purposes, separately, the valuation of the company is also estimated using the using the relative valuation approach (the valuation based on the relative approach can be found in the appendix of this report). | ||
| | |- | ||
| | |Which type of DCF model do you want to use? | ||
| | |Free cash flow | ||
|While Alpha has paid a dividend every year since its public listing (in 2017), the growth rate of the dividend varies materially; accordingly, we suggest valuing the business using the free cash flow valuation method (rather than the dividend discount model). Nevertheless, for completeness purposes, separately, the valuation of the company is also estimated using the dividend discount model (the valuation based on the dividend discount model can be found in the appendix of this report). | |||
|- | |||
|Which financial forecasts to use? | |||
| Proactive Investors | |||
| | |The only available long-term forecasts (i.e. >15 years) are the ones that are supplied by us (the forecasts can be found in the financials section of this report), so we suggests using those. | ||
| | |- | ||
| | | colspan="3" |'''<div style="text-align: center;">Growth stage 2</div>''' | ||
| | |- | ||
| | |Discount rate (%) | ||
| | | 15% | ||
|2 | |There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital. | ||
| | |- | ||
| | |Probability of success (%) | ||
| | | 90% | ||
| | | Research suggests that a suitable rate for a company in this growth stage (i.e. stage 2) is 90%. | ||
| | |||
| | |||
| | |||
|- | |- | ||
| colspan="3" | <div style="text-align: center;"> | | colspan="3" |'''<div style="text-align: center;">Growth stage 3</div>''' | ||
|- | |- | ||
| | |Discount rate (%) | ||
| | | 10% | ||
| | |There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital. | ||
|- | |- | ||
| | |Probability of success (%) | ||
| | |100% | ||
|Research | |Research suggests that a suitable rate for a company in this growth stage (i.e. stage 3) is 100%. | ||
|- | |- | ||
| | | colspan="3" |'''<div style="text-align: center;">Growth stage 4</div>''' | ||
| | |||
|- | |- | ||
| | |Discount rate (%) | ||
| | | 10% | ||
| | |There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital. | ||
|- | |- | ||
| | |Probability of success (%) | ||
| | | 100% | ||
|Research suggests that | |Research suggests that a suitable rate for a company in this growth stage (i.e. stage 4) is 100%. | ||
|- | |- | ||
| | | colspan="3" |'''<div style="text-align: center;">Other key inputs</div>''' | ||
|- | |- | ||
| | |What's the current value of the company? | ||
|$659 million | |||
|As at 26th January 2023, the current value of the Alpha FMC company is $659 million (or £554 million). | |||
|- | |- | ||
| | |Which time period do you want to use to estimate the expected return? | ||
| | | Between now and five years time | ||
|Research suggests that a | |Research suggests that following a market crash, the average amount of time it takes for the price of a stock market to return to its pre-crash level (i.e. the recovery period) is at least three years.<ref>https://www.newyorkfed.org/mediabrary/media/medialibrary/media/research/staff_reports/research_papers/9809.pdf</ref> Accordingly, we suggest that to account for general market cyclicity, it's best to estimate the expected return of the company between now and five years time. | ||
|} | |||
====Sensitive analysis==== | |||
The three main inputs that result in the greatest change in the expected return of the Alpha investment are, in order of importance (from highest to lowest): | |||
# The size of the total addressable market (the default size is $ccc billion); | |||
# Alpha FMC peak market share (the default share is ccc%); and | |||
# The discount rate (the default time-weighted average rate is 10%). | |||
The impact of a 10% change in those main inputs to the expected return of the Alpha investment is shown in the table below. | |||
{| class="wikitable sortable" | |||
|+Alpha FMC investment expected return sensitive analysis | |||
!Main input | |||
!10% worse | |||
!Unchanged | |||
!10% better | |||
|- | |- | ||
| | |The size of the total addressable market | ||
| | |To be added | ||
| | |To be added | ||
|To be added | |||
|- | |- | ||
| | |Alpha FMC peak market share | ||
| | |To be added | ||
| | |To be added | ||
|To be added | |||
|- | |- | ||
| | |The discount rate | ||
| | |To be added | ||
| | |To be added | ||
|To be added | |||
|} | |||
{| class="wikitable" | |||
|+Key inputs | |||
!Description | |||
!Value | |||
!Commentary | |||
|- | |- | ||
| | |Which valuation model do you want to use? | ||
| | |Discounted cash flow | ||
|Research suggests | |Research suggests that in terms of estimating the expected return of an investment over a period of 12-months or more, the approach that is more/most accurate is the absolute valuation approach, so that's the approach that we suggest using to determine the estimated value of the company. | ||
|- | |- | ||
| | |Which type of discounted cash flow model do you want to use? | ||
|Dividend discount model | |||
|The policy of Alpha FMC is to pay out approximately half of adjusted profit after tax. Accordingly, we suggest using the dividend discount model (DDM), which is one of the most common discounted cash flow models. | |||
|- | |- | ||
| | |How many distinct stage of growth do you want to use? | ||
| | |Two stages | ||
| | |For simplicity, we have used two stages here. | ||
|- | |- | ||
| | |What is the transition between the two growth stages? | ||
| | |Smooth | ||
| | |We suggest a smooth transition, and, therefore, we suggest using the H-Model. | ||
|- | |- | ||
| | |What is the expected lifespan of the business? | ||
| | |Perpetual | ||
| | |Again, for simplicity, we have assumed that the business continues forever. | ||
|- | |- | ||
| | |What is the expected initial growth rate of dividends? | ||
| | |32.5% | ||
| | | | ||
|- | |- | ||
| | |What is the expected constant growth rate in dividends? | ||
| | |3% | ||
| | |We note that the gross domestic product (GDP) growth rate in the last 20 years (2001 to 2022) is around 3% per year for the global economy, and around 2.25% for the United Kingdom. Since the company's inception (i.e. eight years ago), the median dividend of the company is 1.57%. Further information about the company's dividend pay-outs can be found in the appendix section of this report. | ||
|- | |- | ||
| | |What is the half life of the initial dividend growth rate? | ||
| | |7.5 years | ||
| | |We suggest using 7.5 years. | ||
|- | |- | ||
| | |Which financial forecasts to use? | ||
| | |Proactive Investors | ||
| | |Here, we have used the forecasts of Proactive Investors. | ||
|- | |- | ||
| | |What is the required return on equity? | ||
| | |9.479% | ||
| | |For estimating the required return on equity, we used the Capital Asset Pricing Model (CAPM), which provides an economically grounded and relatively objective procedure for required return estimation, and, therefore, it has been widely used in valuation. The calculation of the required return on equity (and the reasons behind the calculation) can be found in the table below. | ||
|- | |- | ||
| | |What's the current value of the company? | ||
|454.88 pence per share | |||
|As at 18th January 2023, the current value of Alpha FMC is 454.88p per share. | |||
|- | |- | ||
| | |Which time period do you want to use to estimate the expected return? | ||
| | |Between now and five years time | ||
|Research suggests that it's best to | |Research suggests that following a market crash, the average amount of time it takes for the price of a stock market to return to its pre-crash level (i.e. the recovery period) is at least three years. Accordingly, we suggest that to account for general market cyclicity, it's best to estimate the expected return of the company between now and five years time. | ||
|} | |||
{| class="wikitable" | |||
|+ | |||
|} | |||
==== Sensitive analysis ==== | |||
The three main inputs that result in the greatest change in the expected return of the Alpha investment are, in order of importance (from highest to lowest): | |||
#The initial growth rate (the default rate is cccx); | |||
# The terminal growth rate (the default rate is $ccc million); and | |||
#The discount rate (the default time-weighted average rate is 10%). | |||
The impact of a 10% change in those main inputs to the expected return of the Alpha investment is shown in the table below. | |||
{| class="wikitable sortable" | |||
|+Sirius investment expected return sensitive analysis | |||
!Main input | |||
!10% worse | |||
!Unchanged | |||
!10% better | |||
|- | |- | ||
| | |The initial growth rate | ||
| | |To be added | ||
| | |To be added | ||
|To be added | |||
|- | |- | ||
| | |The terminal growth rate | ||
| | |To be added | ||
| | |To be added | ||
|To be added | |||
|- | |- | ||
| | |The default rate | ||
| | |To be added | ||
| | |To be added | ||
|To be added | |||
|} | |||
{| class="wikitable" | |||
|+Cost of equity (%) | |||
!Input | |||
!Input value | |||
!Additional information | |||
|- | |- | ||
| | |Risk-free rate (%) | ||
| | |3.488% | ||
|Research suggests that it's best to use | |Here, the risk free rate is the US 30 year treasury bond, and is calculated as at 16th December 2022. Research suggests that for the risk-free rate, it's best to use one that has the same or similar maturity to the estimated remaining lifespan of the company. Here, we have assumed that the estimated lifespan of the company is 50 years, so we have used the longest maturity, which is 30 years. | ||
|- | |- | ||
| | |Beta | ||
| | |1.139 | ||
| | |Here, to estimate the adjusted beta, we used the iShares MSCI World ETF to represent the market portfolio; and in terms of the time period and frequency of observations, we used five years of monthly data (i.e. 60 observations in total), which is supported by a study and is the most common choice. The beta value in a future period has been found to be on average closer to the mean value of 1.0, and because valuation is forward-looking, it is logical to adjust the raw beta so it more accurately predicts a future beta. | ||
|- | |- | ||
| | |Equity risk premium (%) | ||
| | |5.26 | ||
| | |Here, the equity risk premium is in relation to the global region, and is calculated as at 1st January 2022. Research suggests that for the region of equity risk premium, it's best to use one that is the same or similar to the region of the beta market portfolio. Here, the region of the beta market portfolio is the world/global, so we have used the world/global region for the equity risk premium. | ||
|- | |- | ||
| | |Cost of equity (%) | ||
| | |9.479% | ||
| | |Cost of equity = Risk-free rate + Beta x Equity risk premium. | ||
|} | |||
== Appendix == | |||
=== Alternative absolute valuation approach === | |||
=== Relative valuation approach === | |||
==== What's the expected return of an investment in the company using the relative valuation approach? ==== | |||
==== What are the assumptions used to estimate the return figure? ==== | |||
====What are the assumptions used to estimate the return figure?==== | |||
{| class="wikitable" | |||
|+Key inputs | |||
!Description | |||
!Value | |||
!Commentary | |||
|- | |- | ||
| | |Which type of multiple do you want to use? | ||
|Price/earnings to growth | |||
|Given the relatively low amount of leverage used in consulting businesses and Alpha's significant amount of (positive) earnings and comparatively high amount of recurring revenue, we suggest valuing the company using the price/earnings ratio. However, we feel that to take into account the different business lifecycle stages of its peers (and, therefore, the different growth stages of its peers), the most suitable valuation multiple to use is the price/earnings to growth multiple (or the PEG multiple, for short), rather than the price/earnings multiple. | |||
|- | |- | ||
| | |In regards to the PEG multiple, for the earnings figure, which year to you want to use? | ||
| | |||
|Research suggests that it's best to use a | |Year 1 | ||
|Research suggests that when using the relative valuation approach, it's best to use a time period of 12 months or less. Accordingly, for the sales figure, we suggest using Year 1, which is 20 pence per share. | |||
|- | |- | ||
| | |In regards to the PEG multiple, for the earnings growth figure, which year(s) do you want to use? | ||
| | |Year 2 to 4, from now | ||
| | |We suggest that for the sales growth figure, it's best to use Year 2 to 4, which equates to a compound annual growth rate (CAGR) of 30%. | ||
|- | |- | ||
| | |In regards to the PEG multiple, what multiple figure do you want to use? | ||
| | |1.04x | ||
| | |Here, we suggest using a multiple of 1.04x, which we believe is in-line with the multiples of Alpha's peers. | ||
|- | |- | ||
| | |Which financial forecasts to use? | ||
| | |Proactive Investors | ||
| | | The only available forecasts are the ones that are supplied by us (the forecasts can be found in the financials section of this report), so we suggest using those. | ||
|- | |- | ||
| | |What's the current value of the company? | ||
| | |$659 million | ||
| | |As at 26th January 2023, the current value of the Alpha FMC company is $659 million (or £554 million). | ||
|- | |- | ||
| | |Which time period do you want to use to estimate the expected return? | ||
| | |Between now and one year time | ||
|Research suggests that it's best to | |Research suggests that when using the relative valuation approach, it's best to estimate the expected return of the company between now and one year time. | ||
|} | |} | ||
{| class="wikitable" | |||
|+ | |||
!Name | |||
!Bloomberg ticker | |||
!Market capitalisation (USD,billion) | |||
!Primary exchange | |||
!Adjusted EV/sales | |||
! | |||
! | |||
! | |||
!Sales growth rate | |||
!Adjusted beta | |||
|- | |||
|Alpha Financial Markets Consulting | |||
|AFM LN | |||
|659 | |||
|London | |||
|7.49 | |||
| | |||
| | |||
| | |||
|29% | |||
|1.07 | |||
|- | |||
! colspan="10" |UK professional services | |||
| | |||
|- | |- | ||
| | |JTC | ||
| | |JTC LN | ||
| | |1,346 | ||
|London | |||
|23.19 | |||
| | |||
| | |||
| | |||
|24% | |||
|1.11 | |||
|- | |- | ||
| | |XPS Pensions | ||
| | |XPS LN | ||
| | |425 | ||
|London | |||
| 30.16 | |||
| | |||
| | |||
| | |||
|8% | |||
| 0.73 | |||
|- | |- | ||
| | |Gateley | ||
| | |GTLY LN | ||
| | |293 | ||
| | | London | ||
| | |15.73 | ||
| | | | ||
| | | | ||
| | | | ||
| | |10% | ||
|0.61 | |||
|- | |- | ||
| | |Keystone Law | ||
| | |KEYS LN | ||
| | |166 | ||
|London | |||
|9.01 | |||
| | |||
| | |||
| | |||
|18% | |||
|0.63 | |||
|- | |- | ||
| | | Elixirr International | ||
| | |ELIX LN | ||
| | |294 | ||
| | |London | ||
| | |6.54 | ||
| | |||
| | |||
| | |||
|45% | |||
|1.07 | |||
|- | |- | ||
| | |Kin and Carta | ||
| | |KCT LN | ||
| | |493 | ||
|London | |||
| 10.47 | |||
| | |||
| | |||
| | |||
|14% | |||
| 0.90 | |||
|- | |- | ||
| | |MJ Hudson | ||
|MJH LN | |||
|N/A | |||
|London | |||
| | |||
| | |||
| | |||
| | |||
|26% | |||
| | |||
|- | |- | ||
| | |'''Median''' | ||
| 10% | | | ||
| | |424.53 | ||
| London | |||
|10.47 | |||
| | |||
| | |||
| | |||
|21% | |||
|0.90 | |||
|- | |- | ||
| | ! colspan="10" |Global consultancies | ||
|- | |- | ||
| | |Accenture | ||
| ACN US | |||
|181,070 | |||
| New York | |||
|19.99 | |||
| | |||
| | |||
| | |||
|13% | |||
|1.19 | |||
|- | |- | ||
| | | Cognizant Technology Solutions | ||
| | |CTSH US | ||
| | |33,091 | ||
|NASDAQ GS | |||
|32.76 | |||
| | |||
| | |||
| | |||
|5% | |||
|0.99 | |||
|- | |||
|CGI Inc. | |||
|GIB US | |||
|20,307 | |||
|New York | |||
|102.10 | |||
| | |||
| | |||
| | |||
|2% | |||
| 0.80 | |||
|- | |- | ||
| | |Genpact | ||
| | |G US | ||
| | |8,857 | ||
| | |New York | ||
|20.74 | |||
| | |||
| | |||
| | |||
|10% | |||
|0.86 | |||
| | |||
|- | |- | ||
| | | Capgemini | ||
| | |CAP FP | ||
| | |32,648 | ||
| | | EN Paris | ||
|- | | | ||
| | | | ||
| | | | ||
| | | | ||
| | |11% | ||
|1.17 | |||
|- | |||
|Reply SpA | |||
| REY IM | |||
|4,941 | |||
|BrsaItaliana | |||
|16.54 | |||
| | |||
| | |||
| | |||
|12% | |||
|0.91 | |||
|- | |- | ||
| | |DXC Technology | ||
| | |DXC US | ||
| | |6,520 | ||
| | |New York | ||
| | |(8.99) | ||
| | |||
| | |||
| | |||
| -8% | |||
| | |1.12 | ||
|- | |- | ||
| | |GFT Technologies | ||
| | |GFT GY | ||
| | |1,147 | ||
|Xetra | |||
|10.94 | |||
| | |||
| | |||
| | |||
|12% | |||
|1.26 | |||
|- | |- | ||
| | |Atos SE | ||
| | |ATO FP | ||
| | |1,436 | ||
|EN Paris | |||
|51.54 | |||
| | |||
| | |||
| | |||
|1% | |||
|1.59 | |||
|- | |- | ||
| | |Tata Consultancy Services | ||
| | |TCS IN | ||
| | |153,821 | ||
|Natl India | |||
|51.05 | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | | | ||
|10% | |||
|0.89 | |||
|- | |- | ||
| | |Infosys | ||
| | |INFO IN | ||
| | |78,994 | ||
|Natl India | |||
|27.75 | |||
| | |||
| | |||
| | |||
|14% | |||
|0.91 | |||
|- | |- | ||
| | |Wipro | ||
| | |WPRO IN | ||
| | |27,006 | ||
|Natl India | |||
|18.26 | |||
| | |||
| | |||
| | |||
|11% | |||
|0.94 | |||
|- | |- | ||
| | |HCL Technologies | ||
| | |HCLT IN | ||
| | |37,344 | ||
|Natl India | |||
|25.42 | |||
| | |||
| | |||
| | |||
|10% | |||
|0.92 | |||
|- | |- | ||
| | |'''Median''' | ||
| | | | ||
| | |27,006 | ||
| | |||
| | |23.08 | ||
| | | | ||
| | | | ||
| | | | ||
| | |10% | ||
| | |0.94 | ||
| | |||
|} | |} | ||
{| class="wikitable" | {| class="wikitable" | ||
|+ | |+Discount/premium to peers | ||
!Name | |||
!Market capitalisation (USD,billion) | |||
!Adjusted EV/sales | |||
!Adjusted EV/EBITDA | |||
!Adjusted EV/EBIT | |||
!Adjusted P/E | |||
!Sales growth rate | |||
!Adjusted beta | |||
|- | |||
|UK professional services | |||
|55% | |||
|(28%) | |||
|(61%) | |||
|(68%) | |||
|(34%) | |||
|40% | |||
|19% | |||
|- | |||
|Global consultancies | |||
|(98%) | |||
|(68%) | |||
|(76%) | |||
|(76%) | |||
|(65%) | |||
|184% | |||
|14% | |||
|} | |} | ||
{| class="wikitable" | |||
|+ | |||
!Name | |||
!2Y Corr | |||
!Mkt Cap (USD) | |||
!BF P/E | |||
{| class="wikitable | !BF EV/EBITDA | ||
|+ | !BF EV/EBIT | ||
! | !BF EV/Rev | ||
! | !LF P/BV | ||
! | |||
! | |||
|- | |- | ||
| | |Alpha Financial Markets Consul | ||
| | | | ||
| | |658.12M | ||
| | |21.0x | ||
|11.3x | |||
|13.0x | |||
|2.2x | |||
|3.6x | |||
|- | |- | ||
| | |Current Premium to Comps Mean | ||
| | | | ||
| | | | ||
| | |19% | ||
|3% | |||
| -5% | |||
|4% | |||
| -15% | |||
|- | |||
|Mean (Including AFM LN) | |||
| | |||
|41.96B | |||
|17.6x | |||
|11.0x | |||
|13.7x | |||
|2.2x | |||
|4.2x | |||
|- | |- | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
|- | |- | ||
| | |Capgemini SE | ||
|3. | |0.3 | ||
| | |32.63B | ||
|14.8x | |||
|9.6x | |||
|12.1x | |||
|1.5x | |||
|3.3x | |||
|- | |- | ||
| | |GFT Technologies SE | ||
|1. | |0.24 | ||
| | |1.11B | ||
|18.7x | |||
|10.9x | |||
|13.8x | |||
|1.2x | |||
|5.3x | |||
|- | |- | ||
| | |Tata Consultancy Services Ltd | ||
| | |0.24 | ||
| | |153.05B | ||
|26.4x | |||
|18.2x | |||
|19.8x | |||
|4.9x | |||
|11.5x | |||
|- | |||
|Atos SE | |||
|0.23 | |||
|1.45B | |||
|11.0x | |||
|4.9x | |||
|44.1x | |||
|0.4x | |||
|0.3x | |||
|- | |- | ||
| | |Infosys Ltd | ||
| | |0.21 | ||
| | |77.81B | ||
| | |22.8x | ||
|15.6x | |||
|17.6x | |||
|3.9x | |||
|8.5x | |||
| | |||
|- | |- | ||
| | |CGI Inc | ||
| | |0.21 | ||
| | |20.23B | ||
|16.4x | |||
|10.9x | |||
|13.2x | |||
|2.2x | |||
|3.7x | |||
|- | |- | ||
| | |Reply SpA | ||
|0.2 | |||
| | |4.93B | ||
| | |21.9x | ||
|12.7x | |||
|15.2x | |||
|2.0x | |||
|5.3x | |||
|- | |- | ||
| | |Cognizant Technology Solutions | ||
| | |0.18 | ||
| | |33.77B | ||
|14.0x | |||
|8.5x | |||
|10.1x | |||
|1.6x | |||
|2.8x | |||
|- | |- | ||
| | |Wipro Ltd | ||
| | |0.18 | ||
| | |26.78B | ||
|16.9x | |||
|10.6x | |||
|12.9x | |||
|2.0x | |||
|2.9x | |||
|- | |- | ||
| | |Accenture PLC | ||
| | |0.17 | ||
| | |182.82B | ||
|23.3x | |||
|14.5x | |||
|17.4x | |||
|2.7x | |||
|7.6x | |||
|- | |- | ||
| | |HCL Technologies Ltd | ||
| | |0.17 | ||
| | |37.12B | ||
|18.6x | |||
|11.4x | |||
|14.0x | |||
|2.6x | |||
|4.7x | |||
|- | |- | ||
| | |DXC Technology Co | ||
| | |0.14 | ||
| | |6.50B | ||
| | |6.4x | ||
|3.7x | |||
|7.0x | |||
| | |0.7x | ||
|1.4x | |||
|- | |- | ||
| | |Genpact Ltd | ||
| | |0.13 | ||
| | |8.59B | ||
|15.5x | |||
|11.6x | |||
|12.6x | |||
|2.1x | |||
|5.0x | |||
|} | |||
{| class="wikitable" | |||
|+ | |||
!Name | |||
!Rev - 1 | |||
!EPS - 1 | |||
!P/E | |||
!ROE | |||
!Dvd 12M | |||
|- | |- | ||
| | |Alpha Financial Markets Consul | ||
|61.11% | |||
| | |5.96% | ||
| | |29.38 | ||
|9.44% | |||
|2.41% | |||
|- | |- | ||
| | |Accenture PLC | ||
| | |21.89% | ||
| | |22.99% | ||
|24.91 | |||
|32.90% | |||
|1.51% | |||
|- | |- | ||
| | |Cognizant Technology Solutions | ||
| | |11.14% | ||
| | |38.06% | ||
|14.6 | |||
|19.95% | |||
|1.64% | |||
|- | |- | ||
| | |CGI Inc | ||
| | |6.11% | ||
| | |12.82% | ||
|18.43 | |||
|20.87% | |||
| -- | |||
|- | |- | ||
| | |Genpact Ltd | ||
| | |8.43% | ||
| | |7.41% | ||
| | |25.19 | ||
| | |19.11% | ||
| | |1.07% | ||
| | |- | ||
| | |Capgemini SE | ||
|14.59% | |||
|24.89% | |||
| | |21.25 | ||
|19.60% | |||
|1.39% | |||
|- | |- | ||
| | |Reply SpA | ||
| | |16.87% | ||
| | |19.16% | ||
| | |29.18 | ||
| | |18.12% | ||
| | |0.66% | ||
| | |- | ||
| | |DXC Technology Co | ||
| | | -8.26% | ||
| | |155.46% | ||
|14.27 | |||
|10.30% | |||
| -- | |||
|- | |- | ||
|GFT Technologies SE | |||
|27.28% | |||
|82.77% | |||
|23.97 | |||
| -- | |||
|0.90% | |||
|- | |- | ||
| | |Atos SE | ||
| | | -3.06% | ||
| | | -- | ||
| | | -- | ||
| | | -14.49% | ||
| -- | |||
| | |||
|- | |- | ||
| | |Tata Consultancy Services Ltd | ||
| | |16.80% | ||
| | |16.23% | ||
|30.76 | |||
| 30. | |37.83% | ||
| | |3.31% | ||
| | |||
|- | |- | ||
| | |Infosys Ltd | ||
| | |21.07% | ||
| | |14.98% | ||
| | |26.93 | ||
| | |32.98% | ||
|2.14% | |||
| | |||
|- | |- | ||
| | |Wipro Ltd | ||
| | |27.69% | ||
| | |16.49% | ||
| | |19.17 | ||
| | |16.02% | ||
|1.51% | |||
| | |||
|- | |- | ||
| | |HCL Technologies Ltd | ||
| | |12.84% | ||
| | |2.13% | ||
| | |21.35 | ||
| | |22.27% | ||
|4.30% | |||
| | |||
|- | |- | ||
| | |'''Medium''' | ||
| | |'''15.69%''' | ||
| | |'''16.49%''' | ||
| | |'''23.97''' | ||
| | |'''19.60%''' | ||
| | |'''1.51%''' | ||
| | |} | ||
| | {| class="wikitable" | ||
| | |+ | ||
!Name | |||
!Net debt/EBIT | |||
!Total debt/EBIT | |||
!Net debt/Equity | |||
!Total debt/Total assets | |||
!EBITDA/Interest expense | |||
|- | |- | ||
! | |||
!(x) | |||
!(x) | |||
!(%) | |||
!(%) | |||
!(x) | |||
|- | |- | ||
| | |Median | ||
| | | -0.27 | ||
| | |0.77 | ||
| -10.13 | |||
|10. | |12.79% | ||
| | |44.42 | ||
| | |||
|- | |- | ||
|ALPHA FINANCIAL MARKETS CONS | |||
| -- | |||
| -- | |||
| -- | |||
|1.05% | |||
|64.72 | |||
|- | |- | ||
| | |ACCENTURE PLC-CL A | ||
| | | -0.21 | ||
| | |0.27 | ||
| | | -11 | ||
| | |7.04% | ||
|258 | |||
| | |||
|- | |- | ||
| | |COGNIZANT TECH SOLUTIONS-A | ||
| | | -0.34 | ||
| | |0.42 | ||
| | | -10.13 | ||
| | |9.27% | ||
|411.44 | |||
| | |||
|- | |- | ||
|CGI | |CGI INC | ||
| | |1.17 | ||
| | |1.55 | ||
| | |41.38 | ||
| | |26.20% | ||
|44.42 | |||
| | |||
|- | |- | ||
| | |GENPACT LTD | ||
| | |1.86 | ||
| | |2.65 | ||
| | |70.93 | ||
|20 | |40.20% | ||
|13.04 | |||
| | |||
|- | |- | ||
| | |CAPGEMINI SE | ||
| | | -- | ||
| | | -- | ||
| | | -- | ||
| | |31.80% | ||
|24.65 | |||
| | |||
|- | |- | ||
| | |REPLY SPA | ||
| | | -- | ||
| | | -- | ||
| | | -- | ||
| | |9.08% | ||
|51.59 | |||
| | |||
|- | |- | ||
|DXC | |DXC TECHNOLOGY CO | ||
| | |1.58 | ||
| | |2.68 | ||
| | |65.92 | ||
| | |30.63% | ||
|10.07 | |||
| | |||
|- | |- | ||
|GFT | |GFT TECHNOLOGIES SE | ||
| | | -- | ||
| | | -- | ||
| | |20.93 | ||
| | |25.15% | ||
|42.01 | |||
| | |||
|- | |- | ||
| | |ATOS SE | ||
| | | -- | ||
| | | -- | ||
| | | -- | ||
| | |34.80% | ||
|26.25 | |||
| | |||
|- | |- | ||
| | |TATA CONSULTANCY SVCS LTD | ||
| | | -0.86 | ||
| | |0.13 | ||
| | | -45.4 | ||
| | |5.52% | ||
|200.19 | |||
| | |||
|- | |- | ||
| | |INFOSYS LTD | ||
| | | -0.33 | ||
| | |0.26 | ||
| | | -15.34 | ||
| | |4.64% | ||
| -- | |||
| | |||
|- | |- | ||
| | |WIPRO LTD | ||
| | | -1.19 | ||
| | |1.11 | ||
| | | -25.95 | ||
| | |16.30% | ||
|30.86 | |||
| | |||
|- | |- | ||
|HCL | |HCL TECHNOLOGIES LTD | ||
| -- | |||
| -- | |||
| -- | |||
|7.12% | |||
|83.33 | |||
| -- | |||
| -- | |||
| -- | |||
|7. | |||
| | |||
|} | |} | ||
{| class="wikitable" | {| class="wikitable" | ||
Line 3,161: | Line 2,132: | ||
*These trends represent a strong tailwind for the Group and are steadily increasing the relevance and value of its proposition: to provide the best specialist consultancy services for clients wherever in the world they need us. | *These trends represent a strong tailwind for the Group and are steadily increasing the relevance and value of its proposition: to provide the best specialist consultancy services for clients wherever in the world they need us. | ||
*The group’s strategic aim to be recognised as the leading global consultancy to the asset management, wealth management and insurance industries. | *The group’s strategic aim to be recognised as the leading global consultancy to the asset management, wealth management and insurance industries. | ||