Discounted Cash Flow Calculation for NSEI:RUBYMILLS 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:RUBYMILLS 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.
Ruby Mills's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Ruby Mills'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
Ruby Mills's earnings available for a low price, and how does
this compare to other companies in the same industry?
Ruby Mills's earnings are expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Ruby Mills 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.
Ruby Mills'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
0/6, 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. Purav Hiren Shah has been Chief Executive Officer of The Ruby Mills Limited since November 10, 2016 and its an Executive Director since September 28, 2018. Mr. Shah served as President of The Ruby Mills Limited until November 10, 2016. He served as an Additional Whole Time Director of The Ruby Mills Limited since December 2017 until September 28, 2018. He has continuously contributed to streamline and update information Technology Department of the Company. He has excelled his inputs in Finance, Information Technology, and Real Estate. He has completed his MBA from Bentley College, USA.
Insufficient data for Purav to compare compensation growth.
Purav'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 Ruby Mills management team is less than 2 years, this suggests a new team.
CEO & Executive Director
MD & Executive Director
MD & Executive Director
Chief Financial Officer
Company Secretary & Compliance Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Ruby Mills board of directors is about average.
A Look At The Intrinsic Value Of The Ruby Mills Limited (NSE:RUBYMILLS)
by estimating the company's future cash flows and discounting them to their present value. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. … We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows
Taking A Look At The Ruby Mills Limited's (NSE:RUBYMILLS) ROE
We'll use ROE to examine The Ruby Mills Limited (NSE:RUBYMILLS), by way of a worked example. … That means that for every ₹1 worth of shareholders' equity, it generated ₹0.068 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Can You Imagine How Chuffed Ruby Mills's (NSE:RUBYMILLS) Shareholders Feel About Its 245% Share Price Gain?
It's also good to see the share price up 18% over the last quarter. … During five years of share price growth, Ruby Mills actually saw its EPS drop 0.5% per year. … So it seems one might have to take closer look at earnings and revenue trends to see how they might influence the share price.
Don't Sell The Ruby Mills Limited (NSE:RUBYMILLS) Before You Read This
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at The Ruby Mills Limited's (NSE:RUBYMILLS) P/E ratio and reflect on what it tells us about the company's share price. … Ruby Mills has a price to earnings ratio of 13.26, based on the last twelve months.
What Kind Of Investor Owns Most Of The Ruby Mills Limited (NSE:RUBYMILLS)?
Every investor in The Ruby Mills Limited (NSE:RUBYMILLS) should be aware of the most powerful shareholder groups. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Ruby Mills is not a large company by global standards.
What Should Investors Know About The Ruby Mills Limited's (NSE:RUBYMILLS) Capital Returns?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Read This Before You Buy The Ruby Mills Limited (NSE:RUBYMILLS) Because Of Its P/E Ratio
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Ruby Mills has a price to earnings ratio of 12.65, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
What You Must Know About The Ruby Mills Limited's (NSE:RUBYMILLS) Financial Strength
However, an important fact which most ignore is: how financially healthy is the business? … So, understanding the company's financial health becomes. … Here are few basic financial health checks you should consider before taking the plunge.
Can The Ruby Mills Limited's (NSE:RUBYMILLS) ROE Continue To Surpass The Industry Average?
and want to learn about Return on Equity using a real-life example. … But what is more interesting is whether RUBYMILLS can sustain this level of return. … With more debt, RUBYMILLS can invest even more and earn more money, thus pushing up its returns.
Is It Time To Sell The Ruby Mills Limited (NSE:RUBYMILLS) Based Off Its PE Ratio?
and want to begin learning the link between The Ruby Mills Limited (NSE:RUBYMILLS)’s fundamentals and stock market performance. … The Ruby Mills Limited (NSE:RUBYMILLS) trades with a trailing P/E of 17.4x, which is higher than the industry average of 17x. … While RUBYMILLS might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions
The Ruby Mills Limited manufactures and markets textile products in India. The company operates through two segments, Textiles and Real Estate. It offers cotton, synthetics yarn, and fabrics; and engages in real estate development activities. The company also exports its products internationally, including China. The Ruby Mills Limited was founded in 1917 and is based in Mumbai, India.
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