Discounted Cash Flow Calculation for BSE:521248 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:521248 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
Kitex Garments'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 Kitex Garments 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
expected to grow at an
Unable to compare Kitex Garments's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Kitex Garments's earnings growth to the India market average as no estimate data is available.
Unable to compare Kitex Garments's revenue growth to the India market average as no estimate data is available.
Unable to determine if Kitex Garments is high growth as no earnings estimate data is available.
Unable to determine if Kitex Garments 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.
Kitex Garments'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
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
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. Sabu M. Jacob has been Managing Director of Kitex Garments Ltd. since August 16, 2006 and served as its Chief Financial Officer since January 25, 2016 until September 30, 2018. Mr. Jacob serves as the Chairman of Kitex Garments Ltd. He has 25 years experience and previously served as an Executive Director of Kitex Ltd. He holds B.A. Economics degree.
Sabu's compensation has been consistent with company performance over the past year.
Sabu's remuneration is higher than average for companies of similar size in India.
Chairman & MD
CFO & Compliance Officer
Dan De Yoe
Vice President and Director of Operations - USA
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Kitex Garments board of directors is about average.
Board of Directors
Chairman & MD
Independent Non Executive Director
Independent & Non-Executive Director
K. L. Narayanan
Who owns this company?
Recent Insider Trading
More shares have been bought than sold by Kitex Garments insiders in the past 3 months, but not in substantial volumes.
Is Kitex Garments Limited (BOM:521248) A Sell At Its Current PE Ratio?
and want to begin learning the link between Kitex Garments Limited (BOM:521248)’s fundamentals and stock market performance. … Kitex Garments Limited (BOM:521248) is trading with a trailing P/E of 17.7x, which is higher than the industry average of 16.9x. … While 521248 might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions.
Kitex Garments and Lakshmi Vilas Bank are examples of many potential outperformers that analysts are bullish on. … BSE:521248 Future Profit May 29th 18 The Lakshmi Vilas Bank Limited (BSE:534690) The Lakshmi Vilas Bank Limited provides various banking products and services in India. … BSE:534690 Future Profit May 29th 18 The Indian Hume Pipe Company Limited (NSEI:INDIANHUME) The Indian Hume Pipe Company Limited engages in the construction contract activities in India.
Kitex Garments Limited manufactures fabric and readymade garments in India. The company primarily offers infant wear comprising body suits, rompters, bibs, burps, sleepwear, training pants, sleep n play products, gowns, skirts and skorts, panties, blankets, mitten/booties, diaper covers, and stretchy products. It also exports its products to the United States and Europe. The company was founded in 1992 and is based in Kochi, India.
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