Discounted Cash Flow Calculation for NSEI:AMBIKCO using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Ambika Cotton Mills
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.
NSEI:AMBIKCO DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
Ambika Cotton Mills
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
Ambika Cotton Mills's
is considered below, and whether this is a fair price.
Price based on past earnings
Ambika Cotton Mills's earnings available for a low price, and how does
this compare to other companies in the same industry?
Ambika Cotton Mills's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Unable to determine if Ambika Cotton Mills 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.
Ambika Cotton Mills'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.
Ambika Cotton Mills
has a total score of
4/6, 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
Ambika Cotton Mills's finances.
The net worth of a company is the difference between its assets and liabilities.
Ambika Cotton Mills is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Ambika Cotton Mills's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Ambika Cotton Mills'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 covered by short term assets, assets are 5.8x 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.
An Examination Of Ambika Cotton Mills Limited (NSE:AMBIKCO)
As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … In the case of Ambika Cotton Mills Limited (NSE:AMBIKCO), it
Is Ambika Cotton Mills Limited (NSE:AMBIKCO) A Smart Pick For Income Investors?
Historically, Ambika Cotton Mills Limited (NSE:AMBIKCO) has been paying a dividend to shareholders. … Let's dig deeper into whether Ambika Cotton Mills should have a place in your portfolio. … Check out our latest analysis for Ambika Cotton Mills
If You Had Bought Ambika Cotton Mills Shares Five Years Ago You'd Have Made 285%
One great example is Ambika Cotton Mills Limited (NSE:AMBIKCO) which saw its share price drive 285% higher over five years. … Over half a decade, Ambika Cotton Mills managed to grow its earnings per share at 7.9% a year. … We know that Ambika Cotton Mills has improved its bottom line lately, but is it going to grow revenue
Do Insiders Own Shares In Ambika Cotton Mills Limited (NSE:AMBIKCO)?
Every investor in Ambika Cotton Mills Limited (NSE:AMBIKCO) should be aware of the most powerful shareholder groups. … Ambika Cotton Mills is a smaller company with a market capitalization of ₹6.5b, so it may still be flying under the radar of many institutional investors. … Taking a look at the our data on the ownership groups (below), it's seems that.
Here's How P/E Ratios Can Help Us Understand Ambika Cotton Mills Limited (NSE:AMBIKCO)
We'll look at Ambika Cotton Mills Limited's (NSE:AMBIKCO) P/E ratio and reflect on what it tells us about the company's share price. … Based on the last twelve months, Ambika Cotton Mills's P/E ratio is 9.91. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Ambika Cotton Mills Limited (NSE:AMBIKCO) Delivered A Better ROE Than Its Industry
Our data shows Ambika Cotton Mills has a return on equity of 14% for the last year. … That means that for every ₹1 worth of shareholders' equity, it generated ₹0.14 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Is Ambika Cotton Mills Limited (NSE:AMBIKCO) An Attractive Dividend Stock?
Historically, Ambika Cotton Mills Limited (NSE:AMBIKCO) has paid dividends to shareholders, and these days it yields 2.9%. … Let's dig deeper into whether Ambika Cotton Mills should have a place in your portfolio. … Check out our latest analysis for Ambika Cotton Mills
Ambika Cotton Mills Limited (NSE:AMBIKCO): Why Return On Capital Employed Is Important
and want to begin learning the link between Ambika Cotton Mills Limited (NSE:AMBIKCO)’s return fundamentals and stock market performance. … Buying Ambika Cotton Mills makes you a partial owner of the company. … To understand Ambika Cotton Mills’s capital returns we will look at a useful metric called return on capital employed.
What Type Of Shareholder Owns Ambika Cotton Mills Limited's (NSE:AMBIKCO)?
The big shareholder groups in Ambika Cotton Mills Limited (NSE:AMBIKCO) have power over the company. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Ambika Cotton Mills is not a large company by global standards.
Does Ambika Cotton Mills Limited's (NSE:AMBIKCO) Past Performance Indicate A Stronger Future?
Examining Ambika Cotton Mills Limited's (NSE:AMBIKCO) past track record of performance is a valuable exercise for investors. … Below, I will assess AMBIKCO's latest performance announced on 30 June 2018 and weigh these figures against its longer term trend and industry movements. … See our latest analysis for Ambika Cotton Mills?
Ambika Cotton Mills Limited manufactures and sells specialty cotton yarns and fabrics in India. The company operates in two segments, Textiles and Windmills. It serves the manufacturers of branded shirts and T-shirts. The company also exports its products to rest of Asia, Europe, North America, and internationally. Ambika Cotton Mills Limited was incorporated in 1988 and is headquartered in Coimbatore, India.
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