TVS Motor Company Limited, together with its subsidiaries, manufactures and sells automotive vehicles and components, spare parts, and accessories in India and internationally.
The last earnings update was 251 days ago.
Discounted Cash Flow Calculation for NSEI:TVSMOTOR using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
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.
NSEI:TVSMOTOR DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
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
is considered below, and whether this is a fair price.
Price based on past earnings
TVS Motor's earnings available for a low price, and how does
this compare to other companies in the same industry?
TVS Motor's earnings are expected to grow by 17.2% yearly, however this is not considered high growth (20% yearly).
TVS Motor's revenue is expected to grow by 11.3% 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.
TVS Motor'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.
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
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. K. N. Radhakrishnan, M. Tech. has been the President of TVS Motor Company Limited since April 1, 2006 and serves as its Chief Executive Officer. Mr. Radhakrishnan serves as Additional Whole-Time Director of TVS Motor Company Limited since October 23, 2018. He began his career in Sundaram Clayton in 1986 as a Management Trainee (1986) and rose to become the head of Business Planning and TQM for the group. In this role he led SundaramClayton to win the prestigious Deming Prize, becoming the first Indian company to do so. In 2004, he was promoted as Executive Vice President of TVS Motor and in 2006 became its President. Under his leadership TVS Motor has become the third largest selling two wheeler brand in India. Mr. Radhakrishnan has led the expansion of TVS Motor into over 60 international markets. Mr. Radhakrishnan is known for his focus on quality, passion for customers, strategic planning and eye for technology. Mr. Radhakrishnan holds a Master’s degree from the Indian Institute of Technology (IIT), Chennai and has also undergone a Management Education Program from the Indian Institute of Management (IIM), Ahmedabad.
K.'s compensation has been consistent with company performance over the past year.
K.'s remuneration is about average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the TVS Motor management team is about average.
Chairman & MD
Joint MD & Whole Time Director
Compliance Officer & Company Secretary
Chief Financial Officer
General Manager of Operations
Vice President of Corporate Communications
Head of Racing Team
Executive Vice President
Senior Vice President of Production Engineering
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the TVS Motor board of directors is over 10 years, this suggests they are a seasoned and experienced board.
What Does TVS Motor Company Limited’s (NSE:TVSMOTOR) 25% ROCE Say About The Business?
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
If You Had Bought TVS Motor (NSE:TVSMOTOR) Shares Five Years Ago You'd Have Made 467%
By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During five years of share price growth, TVS Motor achieved compound earnings per share (EPS) growth of 27% per year. … This EPS growth is slower than the share price growth of 42% per year, over the same period.
Here's What TVS Motor Company Limited's (NSE:TVSMOTOR) P/E Is Telling Us
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at TVS Motor Company Limited's (NSE:TVSMOTOR) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
TVS Motor Company Limited (NSE:TVSMOTOR): What Are Investors Earning On Their Capital?
and looking to gauge the potential return on investment in TVS Motor Company Limited (NSE:TVSMOTOR). … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … To understand TVS Motor’s capital returns we will look at a useful metric called return on capital employed.
Should TVS Motor Company Limited (NSE:TVSMOTOR) Be Your Next Stock Pick?
TVS Motor Company Limited (NSE:TVSMOTOR) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of TVSMOTOR, it
Want To Invest In TVS Motor Company Limited (NSE:TVSMOTOR) Today? Read This First
TVS Motor Company Limited (NSE:TVSMOTOR) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of ₹516.1 is based on unrealistic expectations. … See our latest analysis for TVS Motor? … TVS Motor is poised for extremely high earnings growth in the near future
Why You Should Look Beyond TVS Motor Company Limited's (NSE:TVSMOTOR) Growth
TVS Motor Company Limited (NSE:TVSMOTOR)'s outlook is one of buoyant sentiment as it continues to post exciting top-line revenue growth. … However, my main concerns are around how the company is managing its balance sheet, and whether their current financial status is sustainable. … I will touched on some key aspects you should know on a high level, around its financials and growth prospects going forward
TVS Motor Company Limited, together with its subsidiaries, manufactures and sells automotive vehicles and components, spare parts, and accessories in India and internationally. It operates through Automotive Vehicles and Parts, Automotive Components, Financial Services, and Others segments. The company offers a range of two-wheelers, including motorcycles under the Apache, Victor, StaR City+, Sport, and Max4R names; scooters under the Ntorq, Jupiter, Wego, Scooty Zest 110, and Scooty Pep + names; mopeds under the XL 100, XL 100 Comfort, and XL 100 Heavy Duty names; and three wheelers. It is also involved in the development of housing projects, such as apartments and villas; and provision of financial services. TVS Motor Company Limited distributes its products through a network of authorized dealers. The company was incorporated in 1992 and is based in Chennai, India. TVS Motor Company Limited is a subsidiary of Sundaram-Clayton Limited.
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