Discounted Cash Flow Calculation for NSEI:BANG 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.
NSEI:BANG 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.
Bang Overseas's share price is below the future cash flow value, and at a moderate discount (> 20%).
Bang Overseas'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
Bang Overseas's earnings available for a low price, and how does
this compare to other companies in the same industry?
Bang Overseas's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Bang Overseas 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.
Bang Overseas'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. Brijgopal Balaram Bang serves as the Managing Director of Thomas Scott (India) Limited. Mr. Bang has been Managing Director of Bang Overseas Ltd. since December 1, 2006 and has been its Chairman of the Board since February 14, 2013. He has been a actively involved in the business of Bang Overseas since its incorporation and has played a key role in the growth of the Bang Overseas with his inputs in strategic planning and business development. With his 15 years of experience in textile & garment business, he introduced Thomas Scott brand and took initiatives to venture into retailing of Bang Overseas's apparel. Mr. Bang has been an Executive Director at Bang Overseas Ltd. since June 1, 1992. He serves as Director at Thomas Scott (India) Limited. He serves as a Director of Vedanta Creations Private Limited and Bodywave Fashions (I) Private Limited. Mr. Bang is a commerce graduate and also completed Master of Management Studies (MMS) from Bombay University in the year 1992.
Brijgopal's compensation has been consistent with company performance over the past year.
Brijgopal's remuneration is higher than average for companies of similar size in India.
Chairman & MD
Chief Financial Officer
Company Secretary & Compliance Officer
Board of Directors Tenure
Average tenure of the
board of directors in years:
The tenure for the Bang Overseas board of directors is about average.
Should We Worry About Bang Overseas Limited's (NSE:BANG) P/E Ratio?
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Based on the last twelve months, Bang Overseas's P/E ratio is 17.75. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Why We’re Not Impressed By Bang Overseas Limited’s (NSE:BANG) 4.4% ROCE
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
What You Must Know About Bang Overseas Limited's (NSE:BANG) Financial Strength
While small-cap stocks, such as Bang Overseas Limited (NSE:BANG) with its market cap of ₹835m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Assessing first and foremost the financial health is. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.
Read This Before Judging Bang Overseas Limited's (NSE:BANG) ROE
Bang Overseas has a ROE of 3.8%, based on the last twelve months. … That means that for every ₹1 worth of shareholders' equity, it generated ₹0.038 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
What Type Of Shareholder Owns Bang Overseas Limited's (NSE:BANG)?
A look at the shareholders of Bang Overseas Limited (NSE:BANG) can tell us which group is most powerful. … We can zoom in on the different ownership groups, to learn more about BANG … See our latest analysis for Bang Overseas
Should We Worry About Bang Overseas Limited's (NSE:BANG) P/E Ratio?
We'll look at Bang Overseas Limited's (NSE:BANG) P/E ratio and reflect on what it tells us about the company's share price. … Based on the last twelve months, Bang Overseas's P/E ratio is 21.25. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
How Did Bang Overseas Limited's (NSE:BANG) 3.86% ROE Fare Against The Industry?
This analysis is intended to introduce important early concepts to people who are starting to invest. … and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Check out our latest analysis for Bang Overseas
How Financially Strong Is Bang Overseas Limited (NSE:BANG)?
Bang Overseas Limited (NSE:BANG) is a small-cap stock with a market capitalization of ₹672.58m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is
Is It Time To Sell Bang Overseas Limited (NSE:BANG) Based Off Its PE Ratio?
and want to better understand how you can grow your money by investing in Bang Overseas Limited (NSE:BANG). … Bang Overseas Limited (NSE:BANG) trades with a trailing P/E of 18.2x, which is higher than the industry average of 16.9x. … While this makes BANG appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio.
Why Bang Overseas Limited's (NSE:BANG) Investor Composition Impacts Your Returns
Today, I will be analyzing Bang Overseas Limited’s (NSEI:BANG) recent ownership structure, an important but not-so-popular subject among individual investors. … This size of ownership gives retail investors collective power in deciding on major policy decisions such as executive compensation, appointment of directors and acquisitions of businesses. … Thus, investors not need worry too much about the consequences of these holdings.Next Steps: With a low level of institutional ownership, investors in BANG need not worry about non-fundamental factors such as ownership structure causing large impact on stock prices.
Bang Overseas Limited, together with its subsidiaries, manufactures and markets textile and textile products in India and internationally. The company offers men’s formal and casual wear under the Thomas Scott, Italian Gold, Hammersmith, Bang & Scott, Bang Europa, and FCC brand names. It is also involved in the trading of fabric products. Bang Overseas Limited was founded in 1992 and is headquartered in Mumbai, India.
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