Discounted Cash Flow Calculation for BSE:532401 using Excess Returns Model Model
The calculations below outline how an intrinsic value for Vijaya Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
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
Vijaya Bank's earnings available for a low price, and how does
this compare to other companies in the same industry?
Vijaya Bank's earnings are expected to grow by 8.2% yearly, however this is not considered high growth (20% yearly).
Vijaya Bank's revenue is expected to grow significantly at over 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.
Vijaya Bank'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
1/6, 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.
TENURE AS CEO
Mr. Radhamangalam A. Sankaranarayanan has been the Chief Executive Officer and Managing Director at Vijaya Bank since May 5, 2017. Mr. Sankaranarayanan served as a General Manager at Bank of India Limited since September 2014 and served as its Executive Director from May 15, 2015 to August 31, 2017. He has joined Bank of India as a Direct Recruit Officer in 1983. He served as Chairman and Director of Bank of India (Tanzania) Ltd. until 2018. He was overseeing the International operations of the Bank, covering 59 offices in 22 countries and contributing 29% of the Bank’s business. He has worked as Head of Treasury Operations, Zonal Manager, General Manager of National Banking Group and at Corporate Office etc. besides 2 foreign stints at Tokyo and Singapore. He has been a Director at Vijaya Bank since May 5, 2017. He is a Post Graduate in Public Administration. He holds an MBA Degree and acquired Certified Associate of the Indian Institute of Bankers (CAIIB). He also has a Diploma in Treasury & Investment Risk Management and P G Diploma in Personnel Management and Financial Management.
Insufficient data for Radhamangalam to compare compensation growth.
Radhamangalam's remuneration is lower than average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Vijaya Bank management team is less than 2 years, this suggests a new team.
CEO, MD & Director
GM & Executive Director
GM & CFO
Company Secretary & Compliance Officer
GM of HRD & GM of Risk Mgt
GM & Chief Risk Officer
GM & Chief Risk Officer
Chief Vigilance Officer
Chief Vigilance Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Vijaya Bank board of directors is less than 3 years, this suggests a new board.
Vijaya Bank (BOM:532401): What You Have To Know Before Buying For The Upcoming Dividend
Investors who want to cash in on Vijaya Bank's (BOM:532401) upcoming dividend of ₹1.2 per share have only 9 days left to buy the shares before its ex-dividend date, 21 June 2018, in time for dividends payable on the 29 July 2018. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Vijaya Bank's latest financial data to analyse its dividend attributes. … Here's how I find good dividend stocks?
Recent undervalued financial companies based on their current market price include Vijaya Bank and Indian Bank. … Also, 532401’s PE ratio is currently around 7.36x compared to its Banks peer level of, 17.71x meaning that relative to its competitors, you can purchase 532401’s stock for a lower price right now. … This price and value mismatch indicates a potential opportunity to buy the stock at a low price.
BSE:532401 Future Profit Mar 2nd 18 Granules India Limited (BSE:532482) Granules India Limited manufactures and sells active pharmaceutical ingredients (APIs), pharmaceutical formulation intermediates, and finished dosages (FDs) in India and internationally. … Profit growth, coupled with top-line expansion, is a positive indication. … BSE:532482 Future Profit Mar 2nd 18 KEC International Limited (BSE:532714) KEC International Limited, together with its subsidiaries, primarily engages in engineering, procurement, and construction (EPC) business.
Vijaya Bank provides various banking products and services primarily in India. The company operates through Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations segments. It offers savings bank and current accounts, and recurring and term deposits; and retail lending solutions, such as housing, two wheelers, four wheelers, personal, transport operators, jewel, reverse mortgage, restaurant, secured overdraft, rent, medical practitioners, equipment, flour/rice/dal mills, and properties loans. The company also provides debit and credit card, NRI and international banking, Internet and mobile banking, agricultural banking, and remittance and collection services. In addition, it is involved in merchant banking, money transfer, mutual fund, locker rent, and general insurance and life insurance, as well as bancassurance products. As of March 31, 2018, the company operated through a network of 2136 branches, 2155 ATMs, and 15 extension counters. Vijaya Bank was founded in 1931 and is headquartered in Bengaluru, India.
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