Discounted Cash Flow Calculation for BSE:521133 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Gem Spinners India
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:521133 DCF 1st Stage: Next 5 year cash flow forecast
The current share price of
Gem Spinners India
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
Gem Spinners India's
is considered below, and whether this is a fair price.
Price based on past earnings
Gem Spinners India'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 Gem Spinners India 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 Luxury industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Gem Spinners India
expected to grow at an
Unable to compare Gem Spinners India's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Gem Spinners India's earnings growth to the India market average as no estimate data is available.
Unable to compare Gem Spinners India's revenue growth to the India market average as no estimate data is available.
Unable to determine if Gem Spinners India is high growth as no earnings estimate data is available.
Unable to determine if Gem Spinners India 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.
Gem Spinners India'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.
Gem Spinners India
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
Gem Spinners India's finances.
The net worth of a company is the difference between its assets and liabilities.
Gem Spinners India's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Gem Spinners India's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Gem Spinners India'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.
Gem Spinners India 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. R. Veeramani serves as the Managing Director of Gem Spinners India Ltd. and serves as its Chairman. Mr. Veeramani served as Non Executive Chairman of the Board at Numeric Power Systems Ltd until April 2, 2012. He has been an Executive Director of Gem Spinners India Ltd. since December 6, 1993. He serves as a Director at Gem Granites Pvt Ltd, Imperial Granites Pvt Ltd, Stone Wonders (India) Ltd, Gem Holiday Resorts Ltd, Gem Global Trade Ltd, Gem Sugars Ltd, Ferro Magnets & Allied Products Ltd, Celia Leather Private Ltd, Balaji Bonded Brake Linings Private Ltd, Gem Energy Industry Ltd, Gem Quartz Private Ltd, Get Minerals & Coal Private Ltd, Veeramani Minerals Private Ltd, Veeramani Natural Stones Private Ltd, Benda Infrastructures Development Ltd, Gem Graphites Pvt Ltd, Gem Stone Beach Resorts Pvt Ltd, CAPEXIL, Indo Russian Techno Trade Private Ltd and Southern India Chamber of Commerce & Industry. He holds B.Sc., and B.L.
R.'s compensation has been consistent with company performance over the past year.
R.'s remuneration is lower than average for companies of similar size in India.
Chairman & MD
Chief Financial Officer
Company Secretary & Compliance Officer
Board of Directors Tenure
Average tenure and age of the
Gem Spinners India
board of directors in years:
The tenure for the Gem Spinners India board of directors is about average.
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