Discounted Cash Flow Calculation for NSEI:UWCSL using Dividend Discount Model Model
The calculations below outline how an intrinsic value for
Ultra Wiring Connectivity System
is arrived at by discounting future dividends to their present value. This
approach is used for finance firms where free cash flow is difficult to estimate
(e.g. Banks/ Insurance firms).
If the firm does not pay the majority of its earnings out as a dividend this
method will often arrive at a value significantly lower than the share price.
The current share price of
Ultra Wiring Connectivity System
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
Ultra Wiring Connectivity System's
is considered below, and whether this is a fair price.
Price based on past earnings
Ultra Wiring Connectivity System's earnings available for a low price, and how does
this compare to other companies in the same industry?
Ultra Wiring Connectivity System's earnings are expected to grow by 13.7% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Ultra Wiring Connectivity System is high growth as no revenue estimate data is available.
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.
Ultra Wiring Connectivity System'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.
Ultra Wiring Connectivity System
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
Ultra Wiring Connectivity System's finances.
The net worth of a company is the difference between its assets and liabilities.
Ultra Wiring Connectivity System is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Ultra Wiring Connectivity System's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Ultra Wiring Connectivity System'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 3.1x 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.
Should You Be Concerned About Ultra Wiring Connectivity System Limited's (NSE:UWCSL) ROE?
The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Ultra Wiring Connectivity System: 8.5% = ₹10m ÷ ₹118m (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Ultra Wiring Connectivity System Have A Good Return On Equity? … Combining Ultra Wiring Connectivity System's Debt And Its 8.5% Return On Equity Although Ultra Wiring Connectivity System does use debt, its debt to equity ratio of 0.40 is still low.
Is Ultra Wiring Connectivity System Limited (NSE:UWCSL) Better Than Average At Deploying Capital?
The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Ultra Wiring Connectivity System: 0.19 = ₹17m ÷ (₹184m - ₹92m) (Based on the trailing twelve months to February 2018.) Therefore, Ultra Wiring Connectivity System has an ROCE of 19%. … Ultra Wiring Connectivity System's current liabilities are fairly high, which increases its ROCE significantly. … What We Can Learn From Ultra Wiring Connectivity System's ROCE This ROCE is pretty good, but remember that it would look less impressive with fewer current liabilities.
What You Should Know About Ultra Wiring Connectivity System Limited's (NSE:UWCSL) Financial Strength
Investors are always looking for growth in small-cap stocks like Ultra Wiring Connectivity System Limited (NSE:UWCSL), with a market cap of ₹145m. … However, an important fact which most ignore is: how financially healthy is the business? … The following basic checks can help you get a picture of the company's balance sheet strength.
What Kind Of Shareholder Appears On The Ultra Wiring Connectivity System Limited's (NSE:UWCSL) Shareholder Register?
If you want to know who really controls Ultra Wiring Connectivity System Limited (NSE:UWCSL), then you'll have to look at the makeup of its share registry. … With a market capitalization of ₹150m, Ultra Wiring Connectivity System is a small cap stock, so it might not be well known by many institutional investors. … Check out our latest analysis for Ultra Wiring Connectivity System
Why You Should Like Ultra Wiring Connectivity System Limited’s (NSE:UWCSL) ROCE
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Is Ultra Wiring Connectivity System Limited's (NSE:UWCSL) Balance Sheet Strong Enough To Weather A Storm?
While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.
Ultra Wiring Connectivity System Limited manufactures couplers, connectors, and allied products for automobiles. It offers bulb holders, covers and brackets, hybrid connectors, cable ties and clips, bobbin spool, and other products. The company was founded in 1991 and is headquartered in Faridabad, India.
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