Discounted Cash Flow Calculation for BSE:511389 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 use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
BSE:511389 DCF 1st Stage: Next 5 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.
Videocon Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
Videocon Industries'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
Videocon Industries's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Videocon Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Consumer Durables industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Videocon Industries's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Videocon Industries's earnings growth to the India market average as no estimate data is available.
Unable to compare Videocon Industries's revenue growth to the India market average as no estimate data is available.
Unable to determine if Videocon Industries is high growth as no earnings estimate data is available.
Unable to determine if Videocon 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.
Videocon 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
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
Videocon Industries's finances.
The net worth of a company is the difference between its assets and liabilities.
Videocon Industries's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Videocon Industries's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Videocon 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.
Low level of unsold assets.
Videocon Industries has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
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
Mr. Venugopal Nandlal Dhoot is a Co-Owner of Goan Football Club Pvt. Ltd. Mr. Dhoot serves as the Chairman of Videocon Industries Ltd. and has been its Managing Director since September 1, 2005 and also serves as its Chief Executive Officer. Mr. Dhoot serves as the President of Indo Japanese Association. He is one of the promoters of the Videocon group of companies and has been instrumental in growth and promotion of the Videocon group. He is an Advisor to the Government of Orissa on issues of industrial development in Orissa. He has been associated in the consumer electronics and home appliances business for over 30 years. He served as the Chief Executive Officer of Videocon Industries Ltd. since September 1, 2005. Mr. Dhoot has been a Director of Videocon Industries Ltd. since June 1, 2005. He served as a Non-Executive Director of Trend Electronics Ltd. since December 29, 1998. He served as an Independent Director of Rural Electrification Corporation Limited from December 20, 2007 to December 19, 2011. Mr. Dhoot served as a Director of Value Industries Ltd (Alternate Name: Videocon Appliances Ltd) from March 8, 1988 to February 1, 2012. He serves as the President of the Electronic Industries Association of Marathwada. He was the President and Chairman of the Associated Chambers of Commerce and Industry in India. Mr. Dhoot was the Chairman of the Federation of the Indian Chambers of Commerce and Industry (Consumer Goods Committee). Mr. Dhoot serves as a Member of the Advisory Committee of Poona University Information Employment & Guidance. Mr. Dhoot's interests include flute recital and discourse on BhagwatGita. Mr. Dhoot was awarded the Marathwada Bhushan Award on April 2, 2005 and was chosen for the honour for his outstanding initiatives to make India self reliant in hardware and consumer electronics and also was awarded the Elcina Electronics Man of the Year 2005-06. Mr. Dhoot holds a BE in Electricals Engineering from the Pune University. He studied at Pune Engineering College, Pune. He is a Graduate in Economics.
Insufficient data for Venugopal to compare compensation growth.
Venugopal's remuneration is lower than average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Videocon Industries management team is less than 2 years, this suggests a new team.
Chief Financial Officer
Head of Technology and Innovation
Company Secretary & Compliance Officer
Chief Marketing Officer
Chief Operating Officer of Sales
Division Chief Operating Officer and Vice President
Videocon Industries Limited manufactures and distributes a range of consumer durables in India and internationally. The company also engages in the exploration and production of crude oil and natural gas. Videocon Industries Limited was incorporated in 1986 and is based in Aurangabad, India.
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