Discounted Cash Flow Calculation for BSE:542019 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:542019 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.
Shubham Polyspin's share price is below the future cash flow value, and at a moderate discount (> 20%).
Shubham Polyspin'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
Shubham Polyspin's earnings available for a low price, and how does
this compare to other companies in the same industry?
Shubham Polyspin's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Unable to determine if Shubham Polyspin 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.
Shubham Polyspin'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
5/6, 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
Shubham Polyspin's finances.
The net worth of a company is the difference between its assets and liabilities.
Shubham Polyspin is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Shubham Polyspin's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Shubham Polyspin'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 not covered by short term assets, assets are 0.9x 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. Ankit Anil Somani is Managing Director of Shubham Polyspin Limited since August 04, 2018 and is its Executive Director. Mr. Somani holds Degree of Master of Business Administration in Finance and Investment Management from Prifysgol Cymbro University of Wales. He has an experience of more than 8 years in the family business with respect to production, planning and sales. He is the guiding force behind all the corporate decisions and is responsible for the entire Business operations.
Insufficient data for Ankit to compare compensation growth.
Ankit's remuneration is lower than average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Shubham Polyspin management team is less than 2 years, this suggests a new team.
MD & Executive Director
Non-Executive Director & CFO
Chairman & MD
Company Secretary & Compliance Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Shubham Polyspin board of directors is less than 3 years, this suggests a new board.
Shubham Polyspin Limited provides twisted and air intermingled polypropylene multifilament yarns in India. It also offers polypropylene bag closing threads, and polypropylene webbings and narrow woven fabrics. The company was incorporated in 2012 and is based in Kadi, 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.