Discounted Cash Flow Calculation for BSE:526588 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:526588 DCF 1st Stage: Next 10 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.
Photoquip India's share price is below the future cash flow value, and at a moderate discount (> 20%).
Photoquip India'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
Photoquip 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 Photoquip 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 Leisure industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Photoquip India's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Photoquip India's earnings growth to the India market average as no estimate data is available.
Unable to compare Photoquip India's revenue growth to the India market average as no estimate data is available.
Unable to determine if Photoquip India is high growth as no earnings estimate data is available.
Unable to determine if Photoquip 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.
Photoquip 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.
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.
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. Jayant Purshottam Soni is a Founder of Photo Quip India Limited and serves as its Executive Chairman and Chief Executive Officer. Mr. Soni has been Managing Director of Photoquip India Limited since April 01, 2011.
Jayant's compensation has been consistent with company performance over the past year.
Jayant's remuneration is higher than average for companies of similar size in India.
CFO & Compliance Officer
Whole Time Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Photoquip India board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Photoquip India Limited manufactures and sells digital studio flash lights and photographic accessories in India. It offers light and motion sets, batteries and chargers, compacts, battery packs, power packs, and light shapers, as well as accessories, such as light stands. The company also provides flash unit triggers, and transmitters and receivers under the EL-Skyport brand name. It also exports its products. The company was founded in 1976 and is based in Mumbai, India.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.