Discounted Cash Flow Calculation for BSE:533761 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.
BSE:533761 DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
GPT Infraprojects's share price is below the future cash flow value, and at a moderate discount (> 20%).
GPT Infraprojects's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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
GPT Infraprojects's earnings available for a low price, and how does
this compare to other companies in the same industry?
GPT Infraprojects's earnings are expected to grow by 12.1% yearly, however this is not considered high growth (20% yearly).
Unable to determine if GPT Infraprojects 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.
GPT Infraprojects'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.
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
GPT Infraprojects's finances.
The net worth of a company is the difference between its assets and liabilities.
GPT Infraprojects's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
GPT Infraprojects's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
GPT Infraprojects'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 1.7x 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. Shree Gopal Tantia serves as Managing Director at GPT Infraprojects Limited and has been its Executive Director since August 13, 2007. Mr. Tantia has 28 years experience in infrastructure and civil construction sector.
Shree's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Shree's remuneration is higher than average for companies of similar size in India.
MD & Executive Director
CFO & Executive Director
COO & Whole-Time Director
Company Secretary & Compliance Officer
Senior Vice President of Technical
Senior Vice President of Planning & Human Resources
Head of Africa Operations
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the GPT Infraprojects board of directors is about average.
Was GPT Infraprojects Limited's (BOM:533761) Earnings Growth Better Than The Industry's?
Understanding GPT Infraprojects Limited's (BOM:533761) performance as a company requires examining more than earnings from one point in time. … Today I will take you through a basic sense check to gain perspective on how GPT Infraprojects is doing by evaluating its latest earnings with its longer term trend as well as its industry peers' performance over the same period. … 533761's trailing twelve-month earnings (from 31 December 2017) of ₹192.82m has.
GPT Infraprojects Limited, together with its subsidiaries, engages in the execution of civil and infrastructure construction projects in India. It operates in two segments, Concrete Sleepers and Infrastructure. The company constructs roads, bridges, and irrigation and railway systems, as well as power, urban transit, industrial, and civil aviation infrastructure. It also manufactures and sells monoblock and PSC sleepers for various track applications, including monoblock sleepers for broad, cape, and dual gauges, as well as line sleepers, bridge deck sleepers, and level crossing and switch expansion joints. In addition, the company exports its products. GPT Infraprojects Limited was incorporated in 1980 and is based in Kolkata, India.
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