Discounted Cash Flow Calculation for NSEI:DOLLAR 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:DOLLAR 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
Dollar Industries's earnings available for a low price, and how does
this compare to other companies in the same industry?
Dollar Industries's earnings are expected to grow by 15.5% yearly, however this is not considered high growth (20% yearly).
Dollar Industries's revenue is expected to grow by 10.7% 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.
Dollar Industries'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.
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
Dollar Industries's finances.
The net worth of a company is the difference between its assets and liabilities.
Dollar Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Dollar Industries's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Dollar Industries'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 3.2x 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.
Mr. Vinod Kumar Gupta served as Managing Director of Parenteral Drug (India) Limited since January 1, 2004 until February 27, 2019. Mr. Gupta has been the Managing Director at Dollar Industries Limited since March 30, 1996 and also serves as its Chief Executive Officer. He serves as the Chief Operating officer of Projects at AEZ Infratech Private Limtied. He served as Managing Director of Parenteral Drug (India) Ltd. since 1992. He has almost 36 years of working experience of various business activities including experience in pharmaceutical industry. He has his own consultancy firm and has an extensive and fulfilling tenure with several Modi group companies. He served as a Director of Parenteral Drug (India) Ltd until February 27, 2019. He has been a Director of Dollar Industries Limited since March 30, 1996. He has been Non-Executive & Independent Director of Eurotex Industries and Exports Limited., since March 29, 2007. He served as an Independent Director of Eurotex Industries and Exports Limited., since March 29, 2007. Mr. Gupta holds B.Tech and MBA from University of Virginia.
Vinod's compensation has been consistent with company performance over the past year.
Vinod'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 Dollar Industries management team is less than 2 years, this suggests a new team.
MD & Director
MD & Director
Administrative Director & Executive Director
Senior Vice President of Corporate Strategy & Investors Relation
Chief Financial Officer
Deputy General Manager of Marketing
Human Resources & Administration Manager
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Dollar Industries board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Should You Like Dollar Industries Limited’s (NSE:DOLLAR) High Return On Capital Employed?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … How Do You Calculate Return On Capital Employed
You Might Like Dollar Industries Limited (NSE:DOLLAR) But Do You Like Its Debt?
Dollar Industries Limited (NSE:DOLLAR) is a small-cap stock with a market capitalization of ₹16b. … 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.
Introducing Dollar Industries, The Stock That Dropped 40% In The Last Year
Investors in Dollar Industries Limited (NSE:DOLLAR) have tasted that bitter downside in the last year, as the share price dropped 40%. … While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … Even though the Dollar Industries share price is down over the year, its EPS actually improved.
Why Dollar Industries Limited (NSE:DOLLAR) Looks Like A Quality Company
This article is for those who would like to learn about Return On Equity (ROE). … Our data shows Dollar Industries has a return on equity of 18% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
Are Dollar Industries Limited’s (NSE:DOLLAR) High Returns Really That Great?
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … How Do You Calculate Return On Capital Employed
Here's What Dollar Industries Limited's (NSE:DOLLAR) P/E Is Telling Us
We'll look at Dollar Industries Limited's (NSE:DOLLAR) P/E ratio and reflect on what it tells us about the company's share price. … Dollar Industries has a price to earnings ratio of 24.81, based on the last twelve months. … How Do I Calculate Dollar Industries's Price To Earnings Ratio
Do Insiders Own Lots Of Shares In Dollar Industries Limited (NSE:DOLLAR)?
A look at the shareholders of Dollar Industries Limited (NSE:DOLLAR) can tell us which group is most powerful. … Dollar Industries is not a large company by global standards. … Check out our latest analysis for Dollar Industries
Dollar Industries Limited manufactures and markets hosiery and garments primarily in India. It offers vests, briefs/boxers, basic T-shirts, shorts/pajamas, sleepwear, active wear, brassieres, panties, camisoles, and maternity wear for men, women, and children. The company offers its products under the Force NXT, Bigboss, Missy, Ultra Thermals, Champion, and Force Go Wear brands. It also offers its products in the United Arab Emirates, Oman, Jordan, Qatar, Kuwait, Bahrain, Yemen, Iraq, Nepal, Bhutan, Nigeria, Ghana, Algeria, Kenya, Iran, Ukraine, Togo, Latvia, and Sudan. Dollar Industries Limited was founded in 1972 and is based in Kolkata, India.
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