Hargreaves Lansdown plc - Revision history

95.149.241.199: /* Valuation */

2024-05-26T22:54:37Z

Valuation

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 == Valuation ==
 == Appendix ==
 __INDEX__
 <references group="Note" />

95.149.241.199: /* Risks */

2024-05-26T22:48:29Z

Risks

← Older revision		Revision as of 23:48, 26 May 2024
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	== Risks ==		== Risks ==
	~~Risks~~ of ~~Investing~~ in Hargreaves Lansdown ~~plc~~		As with any investment, investing in Hargreaves Lansdown carries a level of risk. Overall, based on the Hargreaves Lansdown adjusted beta (i.e. ccc), the degree of risk associated with an investment in Hargreaves Lansdown is 'ccc'.

	~~Market Risk~~		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 the 25 available share price Hargreaves Lansdown data points. We note that the amount of available data observations for Hargreaves Lansdown is less than what's typically used in the five years of monthly data beta calculation (i.e. 25 observations vs. 60 observations), and accordingly, calculating the beta of such a company may be considered by many to be abnormal; however, for the benefit of simplifying investment comparisons and decision making, we believe that a single standardised risk measure is useful, and that the most appropriate measure is beta.

	The value of ~~investments can go down as well as up due~~ to ~~market fluctuations~~, ~~potentially affecting investor returns~~.		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 0.50 and 1.50. Further information about the beta ratings can be found in the appendix section of this report.

	~~Regulatory Risk~~		The key risks

	~~Changes~~ in ~~financial regulations or compliance requirements could impact the company's operations and profitability.~~		Investing in Hargreaves Lansdown involves several key risks:

	~~Operational~~ Risk		Market Risk: The value of investments can go down as well as up due to market fluctuations, potentially affecting investor returns.

	~~Any disruption~~ in ~~the company’s operational processes~~ or ~~IT systems~~ could ~~negatively affect client services~~ and ~~trust~~.		Regulatory Risk: Changes in financial regulations or compliance requirements could impact the company's operations and profitability.

	~~Competitive~~ Risk		Operational Risk: Any disruption in the company’s operational processes or IT systems could negatively affect client services and trust.

	Increasing competition from other financial service providers may affect market share and profitability.		Competitive Risk: Increasing competition from other financial service providers may affect market share and profitability.

	Interest Rate Risk		Interest Rate Risk: Fluctuations in interest rates can impact the company's income from interest-bearing assets.

	~~Fluctuations in interest rates can impact the company's income from interest-bearing assets.~~		Credit Risk: Clients defaulting on loans or other obligations can result in financial losses for the company.

	Credit Risk

	Clients defaulting on loans or other obligations can result in financial losses for the company.

	== Valuation ==		== Valuation ==

95.149.241.199: /* What are the assumptions used to estimate the financial forecasts? */

2024-05-26T22:45:42Z

What are the assumptions used to estimate the financial forecasts?

← Older revision		Revision as of 23:45, 26 May 2024
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	==Financials==		==Financials==

	~~Open main menu~~
	~~Stockhub~~
	~~Search Stockhub~~
	~~User menu~~
	~~Editing Arctic Shores (section)~~
	Warning: You are not logged in. Your IP address will be publicly visible if you make any edits. If you log in or create an account, your edits will be attributed to your username, along with other benefits.
	==== What are the assumptions used to estimate the financial forecasts?====		==== What are the assumptions used to estimate the financial forecasts?====

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	\|What is the estimated company lifespan?		\|What is the estimated company lifespan?
	\|50 years		\|50 years
	\|Currently, ~~Arctic Shores~~ employs ~~around 77~~, making the company a small organisation (less than 10,000 employees). That said, given the company's mission, we expect the company to grow to a large organisation, and research shows that the average lifespan of a large corporation is around 50 years.<ref>Stadler, Enduring Success, 3–5.</ref>		\|Currently (i.e. as of 26th May 2024), Hargreaves Lansdown employs 2,277 people, making the company a small organisation (less than 10,000 employees). That said, given the company's mission, we expect the company to grow to a large organisation, and 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?		\|What's the estimated annual growth rate of the total addressable market over the lifecycle of the company?
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	\|What's the estimated company peak market share?		\|What's the estimated company peak market share?
	\|1%		\|1%
	\|The Stockhub users estimate that especially given the leadership of the company, the peak market share of ~~Arctic Shores~~ is around ~~0.50~~%, and, therefore, suggests using the share amount here. As of ~~7th November 2023~~, ~~Arctic Shores~~'s current share of the market is estimated at around ~~0.00068~~%.		\|The Stockhub users estimate that especially given the leadership of the company, the peak market share of Hargreaves Lansdown is around ccc%, and, therefore, suggests using the share amount here. As of 26th May 2024, Hargreaves Lansdown's current share of the market is estimated at around ccc%.
	\|-		\|-
	\|Which distribution function do you want to use to estimate company revenue?		\|Which distribution function do you want to use to estimate company revenue?
	\|~~Gaussian~~		\|Logistic
	\|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 the Stockhub users suggest using that function here.		\|Research suggests that the revenue pattern of companies is similar to the pattern produced by the logistic growth function (i.e. the revenue distribution is S-shaped)<ref>https://decisionanalyticsjournal.springeropen.com/articles/10.1186/2193-8636-1-2</ref>, so the Stockhub users suggest using that function here.
	\|-		\|-
	\|What's the estimated standard deviation of company revenue?		\|What's the estimated standard deviation of company revenue?
	\| 5 years		\| 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 ~~Arctic Shores~~'s current estimated revenue amount (i.e. ~~$2.7 million~~) and ~~Arctic Shores~~'s estimated lifespan (i.e. 50 years) and ~~Arctic Shores~~'s estimated current stage of its lifecycle (i.e. introduction stage), the Stockhub users suggest using five years (i.e. 68% of all sales happen within five years either side of the mean year), so that's what's used here.		\|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 Hargreaves Lansdown's current estimated revenue amount (i.e. £ccc) and Hargreaves Lansdown's estimated lifespan (i.e. 50 years) and Hargreaves Lansdown's estimated current stage of its lifecycle (i.e. introduction stage), the Stockhub users suggest using five years (i.e. 68% of all sales happen within five years either side of the mean year), so that's what's used here.
	\|-		\|-
	\| colspan="3" \|'''<div style="text-align: center;">Growth stages</div>'''		\| colspan="3" \|'''<div style="text-align: center;">Growth stages</div>'''
	\|-		\|-
	\|How many main stages of growth is the company expected to go through?		\|How many main stages of growth is the company expected to go through?
	\| 4 stages		\| 2/3 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>		\|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. The Stockhub users estimate that with ~~Arctic Shores~~'s operating cash flows ~~negative~~ (-), investing cash flows ~~negative~~ (-) and its financing cash flows ~~positive~~ (+), the company is in the ~~first~~ stage of growth (i.e. the '~~introduction~~' stage), and, therefore, it has a total of ~~four~~ main stages of growth. Note, to account for one-off events, the three-year average (median) amount was used to calculate the cash flows.		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. The Stockhub users estimate that with Hargreaves Lansdown's operating cash flows positive (+), investing cash flows positive (+) and its financing cash flows negative (-), the company is in the third stage of growth (i.e. the 'shake out' stage), and, therefore, it has a total of two main stages of growth. Note, to account for one-off events, the three-year average (median) amount was used to calculate the cash flows.
	\|-		\|-
	\|What proportion of the company lifecycle is represented by growth stage 1?		\|What proportion of the company lifecycle is represented by growth stage 1?
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	== Appendix ==		== Appendix ==
	__INDEX__		__INDEX__
			<references group="Note" />

95.149.241.199: /* Risks */

2024-05-26T22:29:27Z

Risks

Show changes

95.149.241.199 at 21:53, 26 May 2024

2024-05-26T21:53:34Z

@@ Line 1: / Line 1: @@
-== Summary ==
+Hargreaves Lansdown plc is a financial services company based in Bristol, United Kingdom. It was founded in 1981 by Peter Hargreaves and Stephen Lansdown. The company provides investment and financial services including investment advice, stockbroking, wealth management, and savings products.
-Hargreaves Lansdown plc provides investment services for individuals and corporates in the United Kingdom and Poland. It primarily operates Vantage, a direct-to-investor platform. The company offers stocks and shares individual savings accounts (ISAs), fund and share accounts, and junior and lifetime ISAs. It also provides pension services, including self-invested personal pensions (SIPP), junior SIPPs, annuities, and drawdown; share dealing services; and fund dealing services. In addition, the company offers investment accounts; cash savings; foreign currency exchange services; and financial advisory services. Hargreaves Lansdown plc was founded in 1981 and is headquartered in Bristol, the United Kingdom.
+Hargreaves Lansdown serves both individual investors and corporate clients, offering a range of solutions such as Individual Savings Accounts (ISAs), Self-Invested Personal Pensions (SIPPs), and Fund & Share Accounts. The company operates mainly through its online platform and has grown to become one of the largest direct-to-consumer investment services in the UK.
 __INDEX__

95.149.241.133 at 02:03, 20 August 2022

2022-08-20T02:03:18Z

← Older revision		Revision as of 03:03, 20 August 2022
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	Hargreaves Lansdown plc provides investment services for individuals and corporates in the United Kingdom and Poland. It primarily operates Vantage, a direct-to-investor platform. The company offers stocks and shares individual savings accounts (ISAs), fund and share accounts, and junior and lifetime ISAs. It also provides pension services, including self-invested personal pensions (SIPP), junior SIPPs, annuities, and drawdown; share dealing services; and fund dealing services. In addition, the company offers investment accounts; cash savings; foreign currency exchange services; and financial advisory services. Hargreaves Lansdown plc was founded in 1981 and is headquartered in Bristol, the United Kingdom.		Hargreaves Lansdown plc provides investment services for individuals and corporates in the United Kingdom and Poland. It primarily operates Vantage, a direct-to-investor platform. The company offers stocks and shares individual savings accounts (ISAs), fund and share accounts, and junior and lifetime ISAs. It also provides pension services, including self-invested personal pensions (SIPP), junior SIPPs, annuities, and drawdown; share dealing services; and fund dealing services. In addition, the company offers investment accounts; cash savings; foreign currency exchange services; and financial advisory services. Hargreaves Lansdown plc was founded in 1981 and is headquartered in Bristol, the United Kingdom.

			__INDEX__

109.180.50.163 at 01:09, 13 August 2022

2022-08-13T01:09:26Z

← Older revision		Revision as of 02:09, 13 August 2022
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			== Summary ==

	Hargreaves Lansdown plc provides investment services for individuals and corporates in the United Kingdom and Poland. It primarily operates Vantage, a direct-to-investor platform. The company offers stocks and shares individual savings accounts (ISAs), fund and share accounts, and junior and lifetime ISAs. It also provides pension services, including self-invested personal pensions (SIPP), junior SIPPs, annuities, and drawdown; share dealing services; and fund dealing services. In addition, the company offers investment accounts; cash savings; foreign currency exchange services; and financial advisory services. Hargreaves Lansdown plc was founded in 1981 and is headquartered in Bristol, the United Kingdom.		Hargreaves Lansdown plc provides investment services for individuals and corporates in the United Kingdom and Poland. It primarily operates Vantage, a direct-to-investor platform. The company offers stocks and shares individual savings accounts (ISAs), fund and share accounts, and junior and lifetime ISAs. It also provides pension services, including self-invested personal pensions (SIPP), junior SIPPs, annuities, and drawdown; share dealing services; and fund dealing services. In addition, the company offers investment accounts; cash savings; foreign currency exchange services; and financial advisory services. Hargreaves Lansdown plc was founded in 1981 and is headquartered in Bristol, the United Kingdom.

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2022-07-29T14:27:28Z

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Hargreaves Lansdown plc provides investment services for individuals and corporates in the United Kingdom and Poland. It primarily operates Vantage, a direct-to-investor platform. The company offers stocks and shares individual savings accounts (ISAs), fund and share accounts, and junior and lifetime ISAs. It also provides pension services, including self-invested personal pensions (SIPP), junior SIPPs, annuities, and drawdown; share dealing services; and fund dealing services. In addition, the company offers investment accounts; cash savings; foreign currency exchange services; and financial advisory services. Hargreaves Lansdown plc was founded in 1981 and is headquartered in Bristol, the United Kingdom.