Discounted Cash Flow Calculation for NSEI:MIRZAINT 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:MIRZAINT 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
Mirza International's earnings available for a low price, and how does
this compare to other companies in the same industry?
Mirza International's earnings are expected to grow by 17.8% yearly, however this is not considered high growth (20% yearly).
Mirza International's revenue is expected to grow by 9.8% 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.
Mirza International'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.
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
Mirza International's finances.
The net worth of a company is the difference between its assets and liabilities.
Mirza International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Mirza International's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Mirza International'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 2.5x 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.
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. Rashid Ahmed Mirza, Dip in Lether tech, co-founded Mirza International Limited in 1979 and serves as its Managing Director and Chief Executive Officer. Mr. Mirza has over 30 years of experience in the leather industry and served with various leather companies in the U.K. In 1979, he along with his father promoted Mirza Tanners Ltd. (now, Mirza International Ltd.). He served as Independent Director of Jagran Prakashan Ltd. since November 18, 2005 until July 31, 2014. He has been a Director of Mirza International Limited September 5, 1979. He holds a Diploma in leather technology from Leather Sellers College, London.
Rashid's compensation has been consistent with company performance over the past year.
Rashid's remuneration is higher than average for companies of similar size in India.
MD, CEO & Director
Chief Financial Officer
Company Secretary & Compliance Officer
President of Marketing
President of Production
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Mirza International board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Do You Know What Mirza International Limited's (NSE:MIRZAINT) P/E Ratio Means?
Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. … We'll show how you can use Mirza International Limited's (NSE:MIRZAINT) P/E ratio to inform your assessment of the investment opportunity. … Mirza International has a P/E ratio of 11.51, based on the last twelve months.
Do Institutions Own Mirza International Limited (NSE:MIRZAINT) Shares?
A look at the shareholders of Mirza International Limited (NSE:MIRZAINT) can tell us which group is most powerful. … Mirza International is a smaller company with a market capitalization of ₹6.6b, so it may still be flying under the radar of many institutional investors. … Check out our latest analysis for Mirza International
Should You Worry About Mirza International Limited's (NSE:MIRZAINT) CEO Salary Level?
Rashid Mirza is the CEO of Mirza International Limited (NSE:MIRZAINT). … How Does Rashid Mirza's Compensation Compare With Similar Sized Companies. … Our data indicates that Mirza International Limited is worth ₹6.4b, and total annual CEO compensation is ₹23m.
Why I Like Mirza International Limited (NSE:MIRZAINT)
As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … that has been able to sustain great financial health over the past
Is Mirza International Limited (NSE:MIRZAINT) A Great Dividend Stock?
A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Historically, Mirza International Limited (NSE:MIRZAINT) has paid a dividend to shareholders. … Let's take a look at Mirza International in more detail.
Should Mirza International Limited's (NSE:MIRZAINT) Recent Earnings Worry You?
Examining how Mirza International Limited (NSE:MIRZAINT) is performing as a company requires looking at more than just a years' earnings. … Below, I will run you through a simple sense check to build perspective on how Mirza International is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its luxury industry peers. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 12%, indicating the rate at which MIRZAINT is growing has slowed down
Have Insiders Been Selling Mirza International Limited (NSE:MIRZAINT) Shares This Year?
So we'll take a look at whether insiders have been buying or selling shares in Mirza International Limited (NSE:MIRZAINT). … Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. … Mirza International Insider Transactions Over The Last Year
Don't Sell Mirza International Limited (NSE:MIRZAINT) Before You Read This
We'll look at Mirza International Limited's (NSE:MIRZAINT) P/E ratio and reflect on what it tells us about the company's share price. … Mirza International has a P/E ratio of 13.21, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Should You Like Mirza International Limited’s (NSE:MIRZAINT) High Return On Capital Employed?
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 is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Does Mirza International Limited's (NSE:MIRZAINT) Stock Price Account For Its Growth?
Mirza International Limited (NSE:MIRZAINT) is considered a high-growth stock, but its last closing price of ₹73.9 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … Check out our latest analysis for Mirza International? … Investors in Mirza International have been patiently waiting for the uptick in earnings.
Mirza International Limited manufactures and markets leather footwear and finished leather products in India. It operates through two segments, Tannery Division and Shoe Division. The company offers men’s and women’s footwear; and formal and urban footwear for mobile executives and businessmen. It also provides men’s denims, casual shirts, T-shirts, cargos, trousers, shorts, sweaters, and jackets, as well as accessories, such as belts, socks, hankies, and wallets; and women’s clothing. The company sells its products under the REDTAPE, Bond Street, Oaktrak, and MODE brand names through multiple brand outlets, chain stores, prime outlets, shop windows, and exclusive brand shops, as well as online. Mirza International Limited also exports its products. The company was formerly known as Mirza Tanners Limited. Mirza International Limited was founded in 1979 and is headquartered in Kanpur, India.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.