Discounted Cash Flow Calculation for NSEI:MDL 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 use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
NSEI:MDL DCF 1st Stage: Next 5 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
Marvel Decor's earnings available for a low price, and how does
this compare to other companies in the same industry?
Marvel Decor's earnings are expected to grow by 16.1% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Marvel Decor 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.
Marvel Decor'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
5/6, 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. Ashok R. Paun serves as Chairman & Managing Director of Marvel Decor Limited. Mr. Paun has more than 22 years’ Experience in Window Covering Fashion Industry and he is associated with the Company since Incorporation.
Insufficient data for Ashok to compare compensation growth.
Ashok's remuneration is higher than average for companies of similar size in India.
With A 7.8% Return On Equity, Is Marvel Decor Limited (NSE:MDL) A Quality Stock?
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 ₹0.078 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Do Insiders Own Shares In Marvel Decor Limited (NSE:MDL)?
The big shareholder groups in Marvel Decor Limited (NSE:MDL) have power over the company. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Marvel Decor is a smaller company with a market capitalization of ₹690m, so it may still be flying under the radar of many institutional investors.
What Should You Know About Marvel Decor Limited's (NSE:MDL) Return On Capital?
This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Therefore, looking at how efficiently Marvel Decor is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).
How Did Marvel Decor Limited's (NSE:MDL) 7.8% ROE Fare Against The Industry?
By way of learning-by-doing, we'll look at ROE to gain a better understanding Marvel Decor Limited (NSE:MDL). … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.078 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
What You Must Know About Marvel Decor Limited's (NSE:MDL) Major Investors
I am going to take a deep dive into Marvel Decor Limited’s (NSE:MDL) most recent ownership structure, not a frequent subject of discussion among individual investors. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders.
Are Marvel Decor Limited's (NSE:MDL) Interest Costs Too High?
Investors are always looking for growth in small-cap stocks like Marvel Decor Limited (NSE:MDL), with a market cap of ₹962.77m. … However, an important fact which most ignore is: how financially healthy is the business? … Consumer Durables businesses operating in the environment facing headwinds from current disruption,.
Why Marvel Decor Limited's (NSE:MDL) Ownership Structure Is Important
I am going to take a deep dive into Marvel Decor Limited’s (NSEI:MDL) most recent ownership structure, not a frequent subject of discussion among individual investors. … This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions. … Next Steps: A relatively significant holding of company insiders could mean high alignment with shareholders.
Does Marvel Decor Limited's (NSE:MDL) 55.08% Earnings Growth Make It An Outperformer?
When Marvel Decor Limited (NSEI:MDL) released its most recent earnings update (31 March 2017), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … See our latest analysis for Marvel Decor Did MDL beat its long-term earnings growth trend and its industry? … This means Marvel Decor has been increasing expenses, which is harming margins and earnings, and is not a sustainable practice.
Should You Be Tempted To Sell Marvel Decor Limited (NSE:MDL) Because Of Its PE Ratio?
By comparing a stock’s price per share to its earnings per share, we are able to see how much investors are paying for each dollar of the company’s earnings. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for MDL Price per share = ₹56.6 Earnings per share = ₹1.044 ∴ Price-Earnings Ratio = ₹56.6 ÷ ₹1.044 = 54.2x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … Since MDL's P/E of 54.2x is higher than its industry peers (30.3x), it means that investors are paying more than they should for each dollar of MDL's earnings.
How Financially Strong Is Marvel Decor Limited (NSE:MDL)?
Moreover, MDL has generated cash from operations of ₹5.30M over the same time period, leading to an operating cash to total debt ratio of 2.64%, indicating that MDL’s operating cash is not sufficient to cover its debt. … Looking at MDL’s most recent ₹134.02M liabilities, it appears that the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.89x. … In MDL's, case, the ratio of 4.09x suggests that interest is appropriately covered, which means that debtors may be willing to loan the company more money, giving MDL ample headroom to grow its debt facilities.Next Steps: MDL’s debt and cash flow levels indicate room for improvement.
Marvel Decor Limited manufactures and supplies venetian blinds components to venetian blinds making companies in India and internationally. The company offers roman, roller, luzon, colby, wooden venetian, grayson, patricia, aric, sierra, eton, meliso, dorren, vertical, and bamboo blinds. It operates under the Marvel and Callistus brand names. The company operates a network of 355 Marvel galleries in 243 cities of 23 states in India. It also sells its products through a network of kiosk partners and dealers. The company was formerly known as Accumax Interior Products Private Limited. Marvel Decor Limited was incorporated in 1996 and is based in Jamnagar, India.
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