Discounted Cash Flow Calculation for BSE:514264 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:514264 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
Seasons Textiles's earnings available for a low price, and how does
this compare to other companies in the same industry?
Seasons Textiles's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Seasons Textiles 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.
Seasons Textiles'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
Seasons Textiles's finances.
The net worth of a company is the difference between its assets and liabilities.
Seasons Textiles is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Seasons Textiles's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Seasons Textiles'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 1x 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
Mr. Inderjeet Singh Wadhwa has been the Managing Director of Seasons Textiles Limited since October 1, 2007. Mr. Wadhwa possesses rich experience in Marketing, Finance, Production, Management and Administration. He has extensively traveled all over the globe and possesses rich experience in Furnishing Textile Industry and in depth knowledge of Indian & Global conditions in respect of this Industry. He serves as the Chairman of Seasons Textiles Ltd. and has been its Executive Director since April 28, 1986. He served as the Chairman of Seasons Furnishings Limited until July 31, 2016 and served as its Non Executive Director since November 08, 1993 until July 31, 2016. Mr. Wadhwa is a Commerce Graduate of Delhi University.
Inderjeet's compensation has been consistent with company performance over the past year.
Inderjeet's remuneration is higher than average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Seasons Textiles management team is about average.
Chairman & MD
Chief Financial Officer
Compliance Officer & Company Secretary
President of Marketing
Vice President of Marketing
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Seasons Textiles board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Did Seasons Textiles Limited (BOM:514264) Create Value For Investors Over The Past Year?
and want to begin learning the link between Seasons Textiles Limited (BOM:514264)’s return fundamentals and stock market performance. … Seasons Textiles Limited (BOM:514264) delivered a less impressive 1.59% ROE over the past year, compared to the 7.55% return generated by its industry. … View out our latest analysis for Seasons Textiles
Seasons Textiles Limited manufactures and trades in furnishing fabrics and made-ups in India. The company also exports its products primarily to the United States, Europe, South Africa, the Middle East, Hong Kong, Singapore, the Philippines, and Malaysia. It sells its products through club class outlets. Seasons Textiles Limited was incorporated in 1986 and is based in Noida, India.
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