Discounted Cash Flow Calculation for NSEI:LIBAS 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:LIBAS 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
Libas Designs's earnings available for a low price, and how does
this compare to other companies in the same industry?
Libas Designs's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Unable to determine if Libas Designs 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.
Libas Designs'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
2/6, 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.
Mrs. Reshma Riyaz Ganji serves as Managing Director of Libas Designs Limited and also has been its Director since July 26, 2016. Mrs. Ganji is a Mumbai based International Fashion Designer and having experience of more than 20 years in this field. She is the first Indian Female Designer to represent India at the World Trade Center (New York). She has also received the 'No. 1 Fashion Designer Brand Award' in 2015 for Libas. Mrs. Ganji has done her graduation from Mumbai University.
Reshma's compensation has been consistent with company performance over the past year.
Reshma's remuneration is higher than average for companies of similar size in India.
Chairman & CFO
MD & Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Libas Designs board of directors is less than 3 years, this suggests a new board.
Here's What Libas Designs Limited's (NSE:LIBAS) ROCE Can Tell Us
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. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Libas Designs Limited (NSE:LIBAS) shareholders should be happy to see the share price up 18% in the last month. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Even though the Libas Designs share price is down over the year, its EPS actually improved.
How Does Investing In Libas Designs Limited (NSE:LIBAS) Impact The Volatility Of Your Portfolio?
The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
Here's What Libas Designs Limited's (NSE:LIBAS) P/E Is Telling Us
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Libas Designs has a price to earnings ratio of 19.36, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
What Do You Get For Owning Libas Designs Limited (NSE:LIBAS)?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Why Libas Designs Limited (NSE:LIBAS) Looks Like A Quality Company
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand Libas Designs Limited (NSE:LIBAS). … Return on Equity = Net Profit ÷ Shareholders' Equity
Libas Designs Limited (NSE:LIBAS): Time For A Financial Health Check
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. … Here are few basic financial health checks you should consider before taking the plunge.
What Do You Get For Owning Libas Designs Limited (NSE:LIBAS)?
and want to begin learning the link between Libas Designs Limited (NSE:LIBAS)’s return fundamentals and stock market performance. … 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 … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock.
What does Libas Designs Limited's (NSEI:LIBAS) Balance Sheet Tell Us Abouts Its Future?
How does LIBAS’s operating cash flow stack up against its debt? … Additionally, LIBAS has produced ₹4.0M in operating cash flow in the last twelve months, resulting in an operating cash to total debt ratio of 0.07x, indicating that LIBAS’s operating cash is not sufficient to cover its debt. … At its current level of cash flow coverage, LIBAS has room for improvement to better cushion for events which may require debt repayment.
Libas Designs Limited engages in the process of fabrication of fabric into garments and other products in India. The company offers sherwanis, suits, jackets, shirts, pants, and Indo Western products for men; sarees, suits, lehenga, gowns, and anarkari for women; accessories comprising jewelries, belts, mojaris, cufflinks, and saffa; jute bags, such as carry, gifts, bottle, lunch, and grocery bags; and formal shoes and accessories for men and women. It also provides beauty services. The company markets its products under the LIBAS RIYAZ GANGJI, Gangji Jewels, and LIBAS reshma riyaz gangji brands. Libas Designs Limited was incorporated in 2004 and is based in Mumbai, India.
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