Discounted Cash Flow Calculation for BSE:532090 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:532090 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.
Vandana Knitwear's share price is below the future cash flow value, and at a moderate discount (> 20%).
Vandana Knitwear's share price is below the future cash flow value, but not 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
Vandana Knitwear's earnings available for a low price, and how does
this compare to other companies in the same industry?
Vandana Knitwear's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Vandana Knitwear 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.
Vandana Knitwear'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
Vandana Knitwear's finances.
The net worth of a company is the difference between its assets and liabilities.
Vandana Knitwear is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Vandana Knitwear has no long term commitments.
This treemap shows a more detailed breakdown of
Vandana Knitwear'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.
Vandana Knitwear has no debt, it does not need to be 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.
Mr. Babulal Khimraj Jain serves as the Chief Executive Officer of Vandana Knitwear Limited (formerly Trendy Knitwear Ltd) and served as its Chairman, Chief Financial Officer and Compliance Officer. Mr. Jain has been an Executive Director at Vandana Knitwear Limited since May 20, 1997.
Babulal's compensation has been consistent with company performance over the past year.
Babulal's remuneration is lower than average for companies of similar size in India.
Chairman & MD
CEO & Executive Director
Company Secretary & Compliance Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Vandana Knitwear board of directors is about average.
Vandana Knitwear Limited provides FD suitings in primarily India. The company was formerly known as Trendy Knitwear Limited and changed its name to Vandana Knitwear Limited in August 2012. Vandana Knitwear Limited was incorporated in 1995 and is based in Mumbai, India.
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