Discounted Cash Flow Calculation for NSEI:BDL 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:BDL 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.
Bharat Dynamics's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Bharat Dynamics'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
Bharat Dynamics's earnings available for a low price, and how does
this compare to other companies in the same industry?
Bharat Dynamics's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Unable to determine if Bharat Dynamics 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.
Bharat Dynamics'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
Aerospace & Defense
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
6/6, 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
Commodore Siddharth Mishra is a Chairman and Managing Director at Bharat Dynamics Limited since March 1, 2019. Commodore Mishra was commissioned in the Electrical Branch of Indian Navy in the year 1985. Post retirement from Navy in Sep 2016, Commodore Mishra served ECIL, a Schedule “A” Central Public Sector Enterprise. Prior to joining BDL, he was General Manager (Defence) at ECIL, Hyderabad. Commodore Mishra is a B.Tech in Electrical Engineering, an MSc in Defence Studies and Master of Management Science. He is an alumnus of the prestigious Naval Academy and Naval College of Engineering, Lonavala. In his distinguished career, Commodore Mishra has held varied Operational and Staff appointments, in addition to heading four major groups at ECIL. At Naval Headquarters, he was instrumental in inducting and managing state of the art technology, including policy framing and was in the core team and represented Indian Navy for induction of the Air Craft Carrier into the Services. At Naval Dockyard, Visakhapatnam, he planned, coordinated and over saw execution of refits and modernization of ships and submarines. He also controlled and managed the flawless operation/ maintenance/ asset management/infrastructure development and resource planning of the Dockyard. As a member of the Top Management of ECIL, he has provided excellent leadership to steer various ’Make-in-India’ programme in defence and other sectors, that has paid rich dividend to the Nation.
Insufficient data for Siddharth to compare compensation growth.
Insufficient data for Siddharth to establish whether their remuneration is reasonable compared to companies of similar size in India.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Bharat Dynamics management team is less than 2 years, this suggests a new team.
Director of Finance
Company Secretary & Compliance Officer
Director of Production & Director
Chairman & MD
Director of Technical & Director
Chief Vigilance Officer
Executive Director of Bg
Executive Director of P & A
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Bharat Dynamics board of directors is less than 3 years, this suggests a new board.
Bharat Dynamics Limited (NSE:BDL) Will Pay ₹5.25 In Dividends
Important news for shareholders and potential investors in Bharat Dynamics Limited (NSE:BDL): The dividend payment of ₹5.25 per share will be distributed to shareholders on 16 April 2019, and the stock will begin trading ex-dividend at an earlier date, 26 March 2019. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Bharat Dynamics's latest financial data to analyse its dividend attributes. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:?
Does Bharat Dynamics Limited (NSE:BDL) Have A Place In Your Portfolio?
Does Bharat Dynamics tick all the boxes of a great dividend stock? … 5 questions to ask before buying a dividend stock … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
A Closer Look At Bharat Dynamics Limited's (NSE:BDL) Impressive ROE
Our data shows Bharat Dynamics has a return on equity of 22% for the last year. … That means that for every ₹1 worth of shareholders' equity, it generated ₹0.22 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Is Bharat Dynamics Limited’s (NSE:BDL) 21% ROCE Any Good?
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 measures the amount of pre-tax profits a company can generate from the capital employed in its business.
Here's What Bharat Dynamics Limited's (NSE:BDL) P/E Ratio Is Telling Us
We'll look at Bharat Dynamics Limited's (NSE:BDL) P/E ratio and reflect on what it tells us about the company's share price. … Bharat Dynamics has a price to earnings ratio of 11.44, based on the last twelve months. … How Do I Calculate Bharat Dynamics's Price To Earnings Ratio
Is Bharat Dynamics Limited (NSE:BDL) A Great Dividend Stock?
Bharat Dynamics Limited (NSE:BDL) has started paying a dividend to shareholders. … Let's dig deeper into whether Bharat Dynamics should have a place in your portfolio. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Should We Be Delighted With Bharat Dynamics Limited's (NSE:BDL) ROE Of 26%?
This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.26 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Should You Be Happy With Bharat Dynamics Limited's (NSE:BDL) Performance Lately?
When Bharat Dynamics Limited (NSE:BDL) released its most recent earnings update (30 June 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … Did BDL's recent earnings growth beat the long-term trend and the industry. … BDL's trailing twelve-month earnings (from 30 June 2018) of ₹5.09b has
Is Bharat Dynamics Limited (NSE:BDL) Attractive At Its Current PE Ratio?
Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio … Check out our latest analysis for Bharat Dynamics
Should Bharat Dynamics Limited (NSE:BDL) Be Part Of Your Portfolio?
A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Recently, Bharat Dynamics Limited (NSE:BDL) has returned an average of 2.00% per year to shareholders in terms of dividend yield. … Does Bharat Dynamics tick all the boxes of a great dividend stock?
Bharat Dynamics Limited manufactures and sells guided missiles and related defense equipment in India. It offers surface to air missiles, anti-tank guided missiles, mechanized infantry weapons, underwater weapons, launchers, counter measure dispensing systems, torpedos, and submarine fired decoys. The company was founded in 1970 and is headquartered in Hyderabad, India.
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