Discounted Cash Flow Calculation for NSEI:LIBERTSHOE 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:LIBERTSHOE 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.
Liberty Shoes's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Liberty Shoes's share price is below the future cash flow value, but not 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
Liberty Shoes's earnings available for a low price, and how does
this compare to other companies in the same industry?
Liberty Shoes's earnings are expected to grow by 17.4% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Liberty Shoes 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.
Liberty Shoes'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.
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. Adesh Kumar Gupta, B.E(Mechanical Eng.) serves as the Chairman of Liberty Shoes Ltd. Mr. Gupta has been the Chief Executive Officer of Liberty Shoes Ltd since January 8, 2004. He served as the Chairman of Northern Region of appointments and their promotions etc., from 2006 to 2007. He has been an Executive Director of Liberty Shoes Ltd., since September 28, 1990. Mr. Gupta holds a BE in Mechanical Engineering.
Adesh's compensation has been consistent with company performance over the past year.
Adesh's remuneration is higher 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 Liberty Shoes management team is over 5 years, this suggests they are a seasoned and experienced team.
Chairman & CEO
CFO, Company Secretary & Compliance Officer
CFO of Retail
CEO of Retail
Director Exports & Executive Director
Head of Information Technology
Director of Marketing
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Liberty Shoes board of directors is about average.
A Look At The Fair Value Of Liberty Shoes Limited (NSE:LIBERTSHOE)
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model? … The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period.
Have Insiders Been Selling Liberty Shoes Limited (NSE:LIBERTSHOE) Shares?
So we'll take a look at whether insiders have been buying or selling shares in Liberty Shoes Limited (NSE:LIBERTSHOE). … The Last 12 Months Of Insider Transactions At Liberty Shoes. … In total, Liberty Shoes insiders sold more than they bought over the last year
Is Liberty Shoes Limited's (NSE:LIBERTSHOE) CEO Paid Enough Relative To Peers?
First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Adesh Gupta's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Liberty Shoes Limited has a market cap of ₹2.5b, and is paying total annual CEO compensation of ₹4.8m.
Did Liberty Shoes Limited's (NSE:LIBERTSHOE) Recent Earnings Growth Beat The Trend?
In this article, I will take a look at Liberty Shoes Limited's (NSE:LIBERTSHOE) most recent earnings update (31 December 2018) and compare these latest figures against its performance over the past few years, along with how the rest of LIBERTSHOE's industry performed. … Check out our latest analysis for Liberty Shoes? … LIBERTSHOE's trailing twelve-month earnings (from 31 December 2018) of ₹72m has.
Is Liberty Shoes Limited’s (NSE:LIBERTSHOE) 15% ROCE Any Good?
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. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
What Kind Of Shareholder Appears On The Liberty Shoes Limited's (NSE:LIBERTSHOE) Shareholder Register?
If you want to know who really controls Liberty Shoes Limited (NSE:LIBERTSHOE), then you'll have to look at the makeup of its share registry. … Liberty Shoes is not a large company by global standards. … Taking a look at the our data on the ownership groups (below), it's seems that.
Based On Its ROE, Is Liberty Shoes Limited (NSE:LIBERTSHOE) A High Quality Stock?
We'll use ROE to examine Liberty Shoes Limited (NSE:LIBERTSHOE), by way of a worked example. … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.050 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Read This Before Buying Liberty Shoes Limited (NSE:LIBERTSHOE) Shares
So shareholders might well want to know whether insiders have been buying or selling shares in Liberty Shoes Limited (NSE:LIBERTSHOE). … So we know that an insider sold shares at around the present share price of ₹166. … All up, insiders sold more shares in Liberty Shoes than they bought, over the last year
Is Liberty Shoes Limited (NSE:LIBERTSHOE) Potentially Undervalued?
Less-covered, small caps tend to present more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing? … So, could the stock still be trading at a low price relative to its actual value. … Let’s take a look at Liberty Shoes’s outlook and value based on the most recent financial data to see if the opportunity still exists
Does The Liberty Shoes Limited (NSE:LIBERTSHOE) Share Price Tend To Follow The Market?
Beta is a widely used metric to measure a stock's exposure to 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. … In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
Liberty Shoes Limited manufactures and sells footwear and fashion accessories in India and internationally. It offers footwear products, such as casual, formal, sports, fashion, women, and men shoes under the Healers, Fortune, Force 10, Senorita, Lucky Luke, Gliders, AHA, Rebounce, Coolers, Tiptopp, Prefect, Footflin, and Zeppelin brand names. It operates through distributors and 400 exclusive showrooms, as well as online. Liberty Shoes Limited was founded in 1954 and is headquartered in Karnal, India.
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