Discounted Cash Flow Calculation for NSEI:SORILINFRA using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
SORIL Infra Resources
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:SORILINFRA DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
SORIL Infra Resources
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
SORIL Infra Resources's
is considered below, and whether this is a fair price.
Price based on past earnings
SORIL Infra Resources's earnings available for a low price, and how does
this compare to other companies in the same industry?
SORIL Infra Resources's earnings are expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).
Unable to determine if SORIL Infra Resources 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.
SORIL Infra Resources'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.
SORIL Infra Resources
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.
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
SORIL Infra Resources's finances.
The net worth of a company is the difference between its assets and liabilities.
SORIL Infra Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
SORIL Infra Resources's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
SORIL Infra Resources'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 not covered by short term assets, assets are 0.9x 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.
Is SORIL Infra Resources Limited (NSE:SORILINFRA) Investing Your Capital Efficiently?
Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for SORIL Infra Resources: 0.0063 = ₹17m ÷ (₹6.6b - ₹3.8b) (Based on the trailing twelve months to March 2019.) So, SORIL Infra Resources has an ROCE of 0.6%. … SORIL Infra Resources's Current Liabilities And Their Impact On Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. … This is a fairly high level of current liabilities, boosting SORIL Infra Resources's ROCE.
The SORIL Infra Resources (NSE:SORILINFRA) Share Price Is Up 704% And Shareholders Are Delighted
To wit, the SORIL Infra Resources Limited (NSE:SORILINFRA) share price has soared 704% over five years. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … SORIL Infra Resources's earnings per share are down 21% per year, despite strong share price performance over five years.
Why SORIL Infra Resources Limited's (NSE:SORILINFRA) High P/E Ratio Isn't Necessarily A Bad Thing
We'll look at SORIL Infra Resources Limited's (NSE:SORILINFRA) P/E ratio and reflect on what it tells us about the company's share price. … Based on the last twelve months, SORIL Infra Resources's P/E ratio is 41.27. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Understanding Your Return On Investment In SORIL Infra Resources Limited (NSE:SORILINFRA)
and want a simplistic look at the return on SORIL Infra Resources Limited (NSE:SORILINFRA) stock. … To understand SORIL Infra Resources’s capital returns we will look at a useful metric called return on capital employed. … SORIL Infra Resources's Return On Capital Employed
Does SORIL Infra Resources Limited's (NSE:SORILINFRA) PE Ratio Signal A Selling Opportunity?
SORIL Infra Resources Limited (NSE:SORILINFRA) is currently trading at a trailing P/E of 64.6x, which is higher than the industry average of 40.5x. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind. … See our latest analysis for SORIL Infra Resources
Is SORIL Infra Resources Limited's (NSE:SORILINFRA) Balance Sheet Strong Enough To Weather A Storm?
While small-cap stocks, such as SORIL Infra Resources Limited (NSE:SORILINFRA) with its market cap of ₹7.47b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … since poor capital management may bring about bankruptcies,
Should You Sell SORIL Infra Resources Limited (NSE:SORILINFRA) At This PE Ratio?
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for SORILINFRA Price per share = ₹266.05 Earnings per share = ₹6.14 ∴ Price-Earnings Ratio = ₹266.05 ÷ ₹6.14 = 43.3x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … For example, if you accidentally compared lower growth firms with SORILINFRA, then SORILINFRA’s P/E would naturally be higher since investors would reward SORILINFRA’s higher growth with a higher price. … Alternatively, if you inadvertently compared riskier firms with SORILINFRA, SORILINFRA’s P/E would again be higher since investors would reward SORILINFRA’s lower risk with a higher price as well.
SORIL Infra Resources Limited provides management and maintenance services for commercial and residential properties in India. The company operates through four segments: Facility Maintenance Services, Equipment Renting Services, LED Lighting and Construction, and Advisory and Other Related Activities. It rents equipment, which include tower cranes, passenger hoists, piling rigs, excavators, dozers, motor graders, wheel loaders, mobile boom placers, transit mixers, dumpers, construction and material handling equipment, etc. under the brand name of Indiabulls Store One. The company also provides advisory services related to identification and acquisition of land, project planning, design management, construction, execution, maintenance, and management of completed projects, as well as consultancy and advisory services on engineering and other related technical matters. In addition, it offers LED lighting products for offices, malls, showrooms, factories, industries, and housing societies under the Ib LED brand. The company serves real estate, infrastructure, metro, petroleum refinery, road customers, etc. The company was formerly known as Store One Retail India Limited and changed its name to SORIL Infra Resources Limited in December 2016. SORIL Infra Resources Limited was incorporated in 2005 and is headquartered in Gurugram, India. SORIL Infra Resources Limited is a subsidiary of Indiabulls Integrated Services Limited.
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