Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Union Bank of India. This is due to cash flow or dividend data being
unavailable. The share price is
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
Union Bank of India's
is considered below, and whether this is a fair price.
Price based on past earnings
Union Bank of India's earnings available for a low price, and how does
this compare to other companies in the same industry?
Union Bank of India's earnings are expected to grow significantly at over 20% yearly.
Union Bank of India'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.
Union Bank of India'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.
Union Bank of India
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Fundamentally a bank's business is based upon borrowing and lending money, for
this reason they typically have high levels of debt and we analyse them
This treemap shows a more detailed breakdown of
Union Bank of India'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.
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.
TENURE AS CEO
Mr. Rajkiran Rai Gundyadka has been the Chief Executive Officer and Managing Director of Union Bank of India since July 1, 2017. Mr. Rai Gundyadka has more than 3 decades of rich banking experience including heading industrial Finance Branch, Regions and Zonal Offices. He started his career in 1986 as an Agricultural Finance Officer in central bank of India and has the rich experience of heading various branches at different parts of the country for more than 17 years. On his elevation as general manager, he was given the responsibility of heading human resources development Department. He served as the Field General Manager of Mumbai Zone of Central Bank of India. He has been a Director of Union Bank of India since July 1, 2017. He serves on the Board of Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd. He served as an Executive Director at Oriental Bank of Commerce from January 22, 2016 to June 30, 2017. He has been Representative Director at Export-Import Bank of India since 2018. He is an agricultural science graduate and also a certified member of Indian Institute of bankers.
Insufficient data for Rajkiran to compare compensation growth.
Rajkiran's remuneration is lower than average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the
Union Bank of India
management team in years:
The average tenure for the Union Bank of India management team is less than 2 years, this suggests a new team.
Rajkiran Rai Gundyadka
MD, CEO & Director
Deputy GM & CFO
M. V. D. Murty
Chief Vigilance Officer
Board of Directors Tenure
Average tenure and age of the
Union Bank of India
board of directors in years:
The average tenure for the Union Bank of India board of directors is less than 3 years, this suggests a new board.
Union Bank of India provides various banking and financial services in India. It operates in four segments: Treasury Operations, Corporate/Wholesale Banking, Retail Banking Operations, and Other Banking Operations. The company offers savings, salary, and current accounts; recurring and fixed deposits; and demat and online trading accounts. It also provides retail loans, including home, vehicle, personal, and education loans; loans against property; loans for medical practitioners, pensioners, and salaried individuals; and micro, small, and medium enterprises loans comprising credits and schemes. In addition, the company offers online bill and tax payment services; ATM and remittance services; Internet, mobile, and SMS banking services; debit, credit, gift, payroll, and prepaid cards; insurance and investment services, such as mutual funds, life and general insurances, and tax savings deposits; and cheque collection and safe deposit lockers services. Further, it provides NRI deposit, loan, and investment services; export and import financing, ECGC cover, and treasury services; and products and services for agricultural/SSI/tertiary sectors. Additionally, the company offers corporate banking services, which include trade, working capital, infrastructure, project, and channel financing; lines of credit; and debt structuring/restructuring, loan syndication, structured finance, mergers and acquisition, and private equity services, as well as direct and indirect tax, pension and government deposit scheme, and government bond services. As of March 31, 2018, it operated 4,301 branches in India; 4 branches internationally; and 7,642 ATMs. The company was founded in 1919 and is headquartered in Mumbai, India.
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