Discounted Cash Flow Calculation for BSE:517334 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Motherson Sumi Systems
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
BSE:517334 DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
Motherson Sumi Systems
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Motherson Sumi Systems's
is considered below, and whether this is a fair price.
Price based on past earnings
Motherson Sumi Systems's earnings available for a low price, and how does
this compare to other companies in the same industry?
Motherson Sumi Systems's earnings are expected to grow significantly at over 20% yearly.
Motherson Sumi Systems's revenue is expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Motherson Sumi Systems's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Motherson Sumi Systems
has a total score of
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Motherson Sumi Systems's finances.
The net worth of a company is the difference between its assets and liabilities.
Motherson Sumi Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Motherson Sumi Systems's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Motherson Sumi Systems's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 1.5x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
Mr. Deepak Tyagi is Chief Technology Officer and Member of Executive Board at PKC Group Oyj since 2017. Mr. Tyagi is responsible for design development of wire harnesses for MSSL Wire Harness Division, leading the coordination of joint work between PKC and MSSL. He serves as Chief Executive Officer of MSSL Ireland Pvt Limited - IRELAND. He holds a Bachelor’s Degree in Electrical Engineering.
Insufficient data for Deepak to compare compensation growth.
Insufficient data for Deepak to establish whether their remuneration is reasonable compared to companies of similar size in India.
Chief Financial Officer
COO & Whole-Time Director
Managing Director of Kyungshin Industrial Motherson Limited (KIML)
Chief Representative of Motherson Sumi Systems Limited - Singapore
Chief Executive Officer of MSSL Ireland Pvt Limited - IRELAND
President of Anest Iwata Motherson Limited
President of Schefenacker Motherson Ltd
Executive Officer of Motherson Advance Polymers Limited (MAP)
Board of Directors Tenure
Average tenure and age of the
Motherson Sumi Systems
board of directors in years:
The tenure for the Motherson Sumi Systems board of directors is about average.
What Are Analysts Saying About Motherson Sumi Systems Limited's (BOM:517334) Growth?
After Motherson Sumi Systems Limited's (BOM:517334) earnings announcement in March 2018,. … as a 61.63% rise in profits is expected in the upcoming year, … By 2019, we can expect Motherson Sumi Systems’s bottom line to reach ₹25.81b, a jump from the current ₹15.97b.
Motherson Sumi Systems Limited (BSE:517334) Motherson Sumi Systems Limited designs, develops, manufactures, and supplies wiring harness, rear view mirrors, and interior and exterior modules to the automotive and other industries in India and internationally. … BSE:517334 Future Profit Jan 11th 18 Minda Industries Limited (BSE:532539) Minda Industries Limited, together with its subsidiaries, designs, develops, manufactures, and sells auto components, including auto electrical parts and its accessories in India and internationally. … BSE:532539 Future Profit Jan 11th 18 Kirloskar Ferrous Industries Limited (BSE:500245) Kirloskar Ferrous Industries Limited manufactures and sells iron castings in India.
Motherson Sumi Systems Limited manufactures and sells components to automotive and other industries in India and internationally. The company operates through MSSL Standalone, SMR, SMP, PKC, and Others segments. It provides wiring harnesses; rearview mirrors; polymer products, such as assemblies and bumpers, cockpit assemblies, and door trims; and elastomer processing ranging solutions, including rubber compounding, injection molded rubber parts, bonded parts, molded liquid silicon parts, and extruded rubber components. The company also offers modules comprising automotive lighting systems, air intake manifolds, shock absorbers, heating ventilation and air-conditioning systems, cabins for off-highway construction and agricultural vehicles, waste recycling systems, vehicle air conditioning and lighting systems, and pedal assemblies; and metal working products consisting of cutting tools, broaches, gear cutting tools, thin film coating metals, aluminum die casted parts, sintered metal and precision machined parts, and clutches for car AC compressors. In addition, it provides IT services and solutions, including ERP, consulting, mobility, cloud, big data and analytics, Internet of Things, application development and management, software product engineering, infrastructure and managed, and shared services; and engineering and design services, such as product engineering, prototype, jigs and fixtures, and value added services for the automotive and non-automotive sectors. Further, the company offers manufacturing support services comprising air compressors, paint coating equipment, and auxiliary equipment for injection molding machines, and automatic manufacturing engineering services. Motherson Sumi Systems Limited was founded in 1986 and is headquartered in Noida, India.
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