Discounted Cash Flow Calculation for NSEI:BATAINDIA 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:BATAINDIA DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
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
is considered below, and whether this is a fair price.
Price based on past earnings
Bata India's earnings available for a low price, and how does
this compare to other companies in the same industry?
Bata India's earnings are expected to grow significantly at over 20% yearly.
Bata India's revenue is expected to grow by 12.1% yearly, however this is not considered high growth (20% yearly).
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.
Bata 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
3/6, 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. Sandeep Kataria has been Chief Executive Officer and Whole-Time Director at Bata India Limited since November 14, 2017. Mr. Kataria served as Country Manager of Bata India Limited since August 1, 2017 until November 14, 2017. Mr. Kataria has spent over 2 decades in the consumer industry, covering design and deployment of business strategy, brand management and sales & marketing leadership across the developing and developed markets. He has over sixteen years of experience in Unilever where he was tasked with roles across general management, global brand management and strategy. He joined Unilever in 1993. He held roles ranging from Regional Sales manager to Global Brand Director in Unilever. He served as Chief Commercial Officer at Vodafone India Limited until August 2017. He served as Chief Marketing Officer of India Operations at Yum! Restaurants International, Inc. He served as the Chief Marketing Officer of Indian Subcontinent at Yum! Restaurants (India) Private Limited since 2010. Mr. Kataria was responsible for all marketing, branding and brand public relations activities for Yum! in the Indian subcontinent. Mr. Kataria holds a Bachelor of Technology degree (Chemical Engineering) from the Indian Institute of Technology, Delhi and a Post-Graduate Diploma in Business Management from XLRI, Jamshedpur. He completed his MBA from XLRI, Jamshedpur.
Insufficient data for Sandeep to compare compensation growth.
Sandeep'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 Bata India management team is over 5 years, this suggests they are a seasoned and experienced team.
CEO & Whole-Time Director
MD, President of Asia South & Executive Director
CFO, Director of Finance & Director
Vice President of Marketing & Consumer Services
Senior Vice President of Human Resources
Senior Vice President of Manufacturing & Purchasing
Vice President of eCommerce
Vice President of Famous Brands & Retail Operations
Vice President of Procurement
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Bata India board of directors is about average.
All You Need To Know About Bata India Limited's (NSE:BATAINDIA) Financial Health
Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Bata India Limited (NSE:BATAINDIA), with a market cap of ₹179b, are often out of the spotlight. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis. … See our latest analysis for Bata India
What Type Of Shareholder Owns Bata India Limited's (NSE:BATAINDIA)?
The big shareholder groups in Bata India Limited (NSE:BATAINDIA) have power over the company. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Bata India has a market capitalization of ₹154b, so we would expect some institutional investors to have noticed the stock.
Does The Data Make Bata India Limited (NSE:BATAINDIA) An Attractive Investment?
Bata India Limited (NSE:BATAINDIA) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … , dividend-paying company with a
Should We Be Delighted With Bata India Limited's (NSE:BATAINDIA) ROE Of 15%?
To keep the lesson grounded in practicality, we'll use ROE to better understand Bata India Limited (NSE:BATAINDIA). … That means that for every ₹1 worth of shareholders' equity, it generated ₹0.15 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
What Should You Know About Bata India Limited's (NSE:BATAINDIA) Return On Capital?
and want to begin learning the link between Bata India Limited (NSE:BATAINDIA)’s return fundamentals and stock market performance. … Bata India stock represents an ownership share in the company. … Thus, to understand how your money can grow by investing in Bata India, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)
Is Bata India Limited (NSE:BATAINDIA) A Financially Sound Company?
Bata India Limited (NSE:BATAINDIA), which has zero-debt on its balance sheet, can maximize capital returns by increasing debt due to its lower cost of capital. … Is BATAINDIA right in choosing financial flexibility over lower cost of capital. … Debt capital generally has lower cost of capital compared to equity funding
Does Bata India Limited's (NSE:BATAINDIA) Stock Price Account For Its Growth?
Bata India Limited (NSE:BATAINDIA) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of ₹1010.95 is based on unrealistic expectations. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … Bata India's growth potential is very attractive
What Does Bata India Limited's (NSE:BATAINDIA) Ownership Structure Look Like?
A look at the shareholders of Bata India Limited (NSE:BATAINDIA) can tell us which group is most powerful. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that have been privatized tend to have low insider ownership.
Can Bata India Limited (NSE:BATAINDIA) Continue To Outperform Its Industry?
and want to learn about Return on Equity using a real-life example. … With an ROE of 15.0%, Bata India Limited (NSE:BATAINDIA) outpaced its own industry which delivered a less exciting 7.8% over the past year. … See our latest analysis for Bata India
Bata India Limited manufactures and trades in footwear and accessories through its retail and wholesale network in India. The company offers footwear in the categories of women, children, youth, sports, and men; and accessories, such as belts, wallets and clutches, handbags, and shoe care products for men, women, and kids. It sells its products primarily under the Bata, Bubblegummers, Bata Comfit, Footin, Disney, Hush Puppies, Marie Claire, Naturalizer, North Star, Power, Scholl, and Weinbrenner brands. The company operates through approximately 1,375 retail stores. It also exports its products. The company was formerly known as Bata Shoe Company Private Limited and changed its name to Bata India Limited in 1973. The company was incorporated in 1931 and is based in Gurugram, India. Bata India Limited is a subsidiary of Bata (BN) B.V.
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