Discounted Cash Flow Calculation for NSEI:IFBIND 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:IFBIND 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
IFB Industries's earnings available for a low price, and how does
this compare to other companies in the same industry?
IFB Industries's earnings are expected to grow significantly at over 20% yearly.
IFB Industries's revenue is expected to grow by 12.5% 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.
IFB 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
4/6, 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.
Mr. Bikram Nag, BBA serves as the Managing Director and Joint Executive Chairman of IFB Industries Ltd. Mr. Nag has been the Joint Executive Chairman at IFB Agro Industries Ltd. since May 21, 2009 and has been its Whole Time Director since October 14, 1997. Mr. Nag has more than twelve years of experience in the field of Marketing and Business Management. He has made several significant contributions to IFB Agro Industries Ltd.'s growth and implementation of investment plans and business strategies. Mr. Nag holds B.B.A. from Richmond College, London.
Insufficient data for Bikram to compare compensation growth.
Bikram's remuneration is lower than average for companies of similar size in India.
Joint Executive Chairman & MD
CFO & Executive Director
Compliance Officer & Company Secretary
Deputy MD & Executive Director
Chief Executive Officer of Home Appliances Division
Chief Executive Officer of Engineering Division
Deputy General Manager of Accounts & Finance
Head of Personnel & Administration
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the IFB Industries board of directors is about average.
Why We’re Not Keen On IFB Industries Limited’s (NSE:IFBIND) 13% Return On Capital
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Is IFB Industries Limited's (NSE:IFBIND) High P/E Ratio A Problem For Investors?
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … How Do I Calculate IFB Industries's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Announcing: IFB Industries (NSE:IFBIND) Stock Rocketed An Astounding 1108% In The Last Five Years
For example, the IFB Industries Limited (NSE:IFBIND) share price is up a whopping 1108% in the last half decade, a handsome return for long term holders. … During five years of share price growth, IFB Industries achieved compound earnings per share (EPS) growth of 40% per year. … This EPS growth is slower than the share price growth of 65% per year, over the same period.
Why IFB Industries Limited (NSE:IFBIND) Is An Attractive Investment To Consider
IFB Industries Limited (NSE:IFBIND) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of IFBIND, it
How Did IFB Industries Limited's (NSE:IFBIND) 14% ROE Fare Against The Industry?
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.14 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
How Does IFB Industries Limited (NSE:IFBIND) Affect Your Portfolio Volatility?
Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.
Do Institutions Own Shares In IFB Industries Limited (NSE:IFBIND)?
The big shareholder groups in IFB Industries Limited (NSE:IFBIND) have power over the company. … We also tend to see lower insider ownership in companies that were previously publicly owned. … IFB Industries is a smaller company with a market capitalization of ₹34b, so it may still be flying under the radar of many institutional investors.
IFB Industries Limited (NSE:IFBIND) Insiders Have Been Selling
Over the last year, we can see that the biggest insider sale was by CFO & Executive Director Prabir Chatterjee for ₹9.2m worth of shares, at about ₹1,450 per share. … It is certainly not great to see that insiders have sold shares in the company … However, we do note that the average sale price was significantly higher than the current share price (which is ₹810).
What Should You Know About IFB Industries Limited's (NSE:IFBIND) Capital Returns?
Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Thus, to understand how your money can grow by investing in IFB Industries, 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)
Should You Investigate IFB Industries Limited (NSE:IFBIND) At ₹902?
received a lot of attention from a substantial price movement on the NSEI over the last few months, increasing to ₹1201.9 at one point, and dropping to the lows of ₹867.2. … A question to answer is whether IFB Industries's current trading price of ₹901.95 reflective of the actual value of the? … Let’s take a look at IFB Industries’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change
IFB Industries Limited, together with its subsidiary, manufactures and trades in home appliances primarily in India. It offers domestic washing machines, microwave ovens, domestic and industrial dishwashers, clothes dryers, and modular kitchens; kitchen appliances, such as hobs, chimneys, and built-in ovens; air conditioners; and industrial washing systems, including dry cleaning and other finishing equipment. It also manufactures a range of parts and accessories for motor vehicles, etc.; and fine blanking components and cold rolled steel sheets. The company was formerly known as Indian Fine Blanks Limited. IFB Industries Limited was founded in 1974 and is based in Kolkata, India.
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