Discounted Cash Flow Calculation for NSEI:PTL 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:PTL 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.
Enterprises's share price is below the future cash flow value, and at a moderate discount (> 20%).
Enterprises's share price is below the future cash flow value, and 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
Enterprises's earnings available for a low price, and how does
this compare to other companies in the same industry?
Enterprises's earnings are expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Enterprises 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.
Enterprises'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
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Is PTL Enterprises Limited's (NSE:PTL) P/E Ratio Really That Good?
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … To keep it practical, we'll show how PTL Enterprises Limited's (NSE:PTL) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Introducing Enterprises, The Stock That Slid 61% In The Last Three Years
Unfortunately, they have held through a 61% decline in the share price in that time. … By comparing earnings per share (EPS) and and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Although the share price is down over three years, Enterprises actually managed to grow EPS by 12% per year in that time.
What To Know Before Buying PTL Enterprises Limited (NSE:PTL) For Its Dividend
PTL Enterprises Limited (NSE:PTL) has pleased shareholders over the past 10 years, by paying out dividends. … Let's dig deeper into whether Enterprises should have a place in your portfolio. … Participate in a short research study and receive a 6-month subscription to the award winning Simply Wall St research tool (valued at $60)
Should You Worry About PTL Enterprises Limited’s (NSE:PTL) ROCE?
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Read This Before You Buy PTL Enterprises Limited (NSE:PTL) Because Of Its P/E Ratio
We'll show how you can use PTL Enterprises Limited's (NSE:PTL) P/E ratio to inform your assessment of the investment opportunity. … Enterprises has a price to earnings ratio of 5.94, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
PTL Enterprises Limited (NSE:PTL) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of PTL, it
Is Now The Time To Invest In Automobile And PTL Enterprises Limited (NSE:PTL)?
New opportunities driving future growth in the auto sector is connected and intelligent cars, in particular, web networking, sensors and software, which is not the traditional focus for most automobile companies … Shortcomings of well-established auto companies provides an opportunity for technology firms such as Alphabet and Apple to create their own software underlying autonomous and communication capabilities of automobiles … Automobile analysts are forecasting for the entire industry,
Will PTL Enterprises Limited (NSE:PTL) Continue To Underperform Its Industry?
and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … PTL Enterprises Limited’s (NSE:PTL) most recent return on equity was a substandard 9.71% relative to its industry performance of 14.22% over the past year. … View our latest analysis for Enterprises
How Should Investors Feel About PTL Enterprises Limited's (NSE:PTL) CEO Pay?
Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … Balakrishnan’s pay and compare this to the company’s performance over the same period, as well as measure it against other.
2 Days Left To Cash In On PTL Enterprises Limited (NSE:PTL) Dividend, Is It Worth Buying?
On the 30 August 2018, PTL Enterprises Limited (NSE:PTL) will be paying shareholders an upcoming dividend amount of ₹2.00 per share. … However, investors must have bought the company's stock before 18 July 2018 in order to qualify for the payment. … Below, I'm going to look at the latest data and analyze the stock and its dividend property in further detail.
PTL Enterprises Limited engages in the lease of plant to Apollo Tyres Limited. The company was formerly known as Premier Tyres Ltd. PTL Enterprises Limited was incorporated in 1959 and is based in Gurgaon, India. PTL Enterprises Limited is a subsidiary of Sunrays Properties and Investments Co. Pvt Ltd.
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