Discounted Cash Flow Calculation for NSEI:LAMBODHARA 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:LAMBODHARA 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.
Lambodhara Textiles's share price is below the future cash flow value, and at a moderate discount (> 20%).
Lambodhara Textiles's share price is below the future cash flow value, and 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
Lambodhara Textiles's earnings available for a low price, and how does
this compare to other companies in the same industry?
Lambodhara Textiles's earnings are expected to grow by 0.1% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Lambodhara Textiles 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.
Lambodhara Textiles'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.
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
Lambodhara Textiles's finances.
The net worth of a company is the difference between its assets and liabilities.
Lambodhara Textiles is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Lambodhara Textiles's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Lambodhara Textiles'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 1x 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.
Did Lambodhara Textiles Limited (NSE:LAMBODHARA) Insiders Buy Up More Shares?
So we'll take a look at whether insiders have been buying or selling shares in Lambodhara Textiles Limited (NSE:LAMBODHARA). … However, rules govern insider transactions, and certain disclosures are required. … The Last 12 Months Of Insider Transactions At Lambodhara Textiles
Did Changing Sentiment Drive Lambodhara Textiles's (NSE:LAMBODHARA) Share Price Down A Worrying 67%?
Lambodhara Textiles Limited (NSE:LAMBODHARA) shareholders should be happy to see the share price up 24% in the last month. … During the unfortunate three years of share price decline, Lambodhara Textiles actually saw its earnings per share (EPS) improve by 3.8% per year. … Revenue is actually up 17% over the three years, so the share price drop doesn't seem to hinge on revenue, either.
Is Lambodhara Textiles Limited's (NSE:LAMBODHARA) Capital Allocation Ability Worth Your Time?
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)? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.
Does Lambodhara Textiles Limited (NSE:LAMBODHARA) Have A Good P/E Ratio?
We'll look at Lambodhara Textiles Limited's (NSE:LAMBODHARA) P/E ratio and reflect on what it tells us about the company's share price. … Lambodhara Textiles has a P/E ratio of 6.22, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Should You Buy Lambodhara Textiles Limited (NSE:LAMBODHARA) For Its Dividend?
Historically, Lambodhara Textiles Limited (NSE:LAMBODHARA) has paid a dividend to shareholders. … Let's take a look at Lambodhara Textiles in more detail. … See our latest analysis for Lambodhara Textiles?
What Type Of Shareholder Owns Lambodhara Textiles Limited's (NSE:LAMBODHARA)?
If you want to know who really controls Lambodhara Textiles Limited (NSE:LAMBODHARA), then you'll have to look at the makeup of its share registry. … Lambodhara Textiles is not a large company by global standards. … Let's take a closer look to see what the different types of shareholder can tell us about LAMBODHARA
Lambodhara Textiles Limited (NSE:LAMBODHARA) Insiders Increased Their Holdings
So shareholders might well want to know whether insiders have been buying or selling shares in Lambodhara Textiles Limited (NSE:LAMBODHARA). … The Last 12 Months Of Insider Transactions At Lambodhara Textiles … While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading
Lambodhara Textiles Limited (NSE:LAMBODHARA): A Look At Return On Capital
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. … Therefore, looking at how efficiently Lambodhara Textiles is able to use capital to create earnings will help us understand your potential return.
How Does Lambodhara Textiles Limited (NSE:LAMBODHARA) Fare As A Dividend Stock?
Historically, Lambodhara Textiles Limited (NSE:LAMBODHARA) has paid a dividend to shareholders. … Let's dig deeper into whether Lambodhara Textiles should have a place in your portfolio. … View our latest analysis for Lambodhara Textiles
Lambodhara Textiles Limited (NSE:LAMBODHARA) Delivered A Better ROE Than The Industry, Here’s Why
Lambodhara Textiles Limited (NSE:LAMBODHARA) delivered an ROE of 11.87% over the past 12 months, which is an impressive feat relative to its industry average of 7.65% during the same period. … If LAMBODHARA borrows debt to invest in its business, its profits will be higher. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface.
Lambodhara Textiles Limited manufactures and sells synthetic yarns in India and Internationally. The company operates through Textile, Wind Mills, and Real Estate segments. It offers slub yarns, multi count and multi twist yarns, siro yarns, and neppy yarns. The company also exports its products. Lambodhara Textiles Limited was founded in 1994 and is based in Coimbatore, India.
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