Discounted Cash Flow Calculation for BSE:505840 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:505840 DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
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
is considered below, and whether this is a fair price.
Price based on past earnings
Jaipan Industries's earnings available for a low price, and how does
this compare to other companies in the same industry?
Jaipan Industries's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Jaipan Industries 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.
Jaipan Industries'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
Jaipan Industries's finances.
The net worth of a company is the difference between its assets and liabilities.
Jaipan Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Jaipan Industries's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Jaipan Industries'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 4x 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.
TENURE AS CEO
Ms. Veena Jainarian Agarwal has been a Director of Jaipan Industries Ltd since February 14, 2015 and has been its Managing Director since April 8, 2019. Ms. Agarwal serves as Director of Venery India Marketing Pvt Ltd, Jaipan Sogo Electronics Private Limited and Praxis Healthcare Private Limited. She holds Post Graduate in Marketing.
Insufficient data for Veena to compare compensation growth.
Veena's remuneration is lower than average for companies of similar size in India.
Chairman & Compliance Officer
MD & Director
Chief Financial Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Jaipan Industries board of directors is about average.
Jaipan Industries Limited manufactures and markets home appliances in India and internationally. The company offers cookware products, such as non-stick cookware, steel kitchenware, pressure cookers, cooking sets, nonstick giftsets, and steamer sets; kitchen appliances, including hand mixers and blenders, roti makers, electric kettles, mixer grinders, juicers, sandwich makers, food processors, toasters, air fryers, food choppers, and atta kneaders. It also provides home appliances, such as irons, hair dryers, air purifiers, water purifiers, and kitchen cooler fans; kitchen containers and flasks products comprising lunch boxes, bottles, and flasks; steelware products, including stainless steel dinner sets, tiffins, casseroles, and utensils; and cooking essentials, such as induction cookware and gas stoves. The company also sells its products through online. Jaipan Industries Limited was incorporated in 1965 and is based in Mumbai, India.
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