Discounted Cash Flow Calculation for NSEI:SONAMCLOCK using Dividend Discount Model Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future dividends to their present value. This
approach is used for finance firms where free cash flow is difficult to estimate
(e.g. Banks/ Insurance firms).
If the firm does not pay the majority of its earnings out as a dividend this
method will often arrive at a value significantly lower than the share price.
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
Sonam Clock's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sonam Clock has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Consumer Durables industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Sonam Clock's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Sonam Clock's earnings growth to the India market average as no estimate data is available.
Unable to compare Sonam Clock's revenue growth to the India market average as no estimate data is available.
Unable to determine if Sonam Clock is high growth as no earnings estimate data is available.
Unable to determine if Sonam Clock 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.
Sonam Clock'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.
In this section we usually analyse Sonam Clock's finance health to determine how well-positioned it is against times of financial distress, in particular, its ability to manage its cash and debt levels. Sonam Clock has not provided adequate balance sheet data, its financial health cannot be properly assessed as it.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have financial information. You can see them here.
Show me the analysis anyway
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
Sonam Clock's finances.
The net worth of a company is the difference between its assets and liabilities.
Unable to compare short term assets to short term liabilities as Sonam Clock has not reported sufficient balance sheet data.
Unable to establish if Sonam Clock's long term commitments exceed its cash and other short term assets as Sonam Clock has not reported sufficient balance sheet data.
This treemap shows a more detailed breakdown of
Sonam Clock'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.
Unable to establish if Sonam Clock has a high level of physical assets or inventory without balance sheet data.
Unable to verify if debt is covered by short term assets as Sonam Clock has not reported sufficient balance sheet data.
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.
All data from Sonam Clock Company Filings, last reported 2 years ago.
NSEI:SONAMCLOCK Past Debt and Equity Data
Date (Data in INR Millions)
Cash & Short Term Investments
Unable to establish if Sonam Clock's level of debt is high without past debt data.
Unable to establish if Sonam Clock's debt level has increased without past 5-year debt data.
Unable to verify if debt is well covered by operating cash flow as Sonam Clock has not reported sufficient balance sheet data.
Unable to confirm if the interest payments on Sonam Clock's debt are well covered by earnings due to lack of past financial data.
Take a look at our analysis of SONAMCLOCK’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
Investors tend to look at the financial health of a company this size in order to assess the sustainability of its current operations. Sonam Clock's cash and debt levels may be found in its annual reports archived here.
Financial health is measured at one point in time, so the latest financial report is the best representation of the company’s current financial status. Check when Sonam Clock's financial data was last updated here.
Consider This Before Buying Sonam Clock Limited (NSE:SONAMCLOCK) For The 2.7% Dividend
A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Recently, Sonam Clock Limited (NSE:SONAMCLOCK) has started paying dividends to shareholders. … Let's dig deeper into whether Sonam Clock should have a place in your portfolio.
Will Sonam Clock Limited (NSE:SONAMCLOCK) Continue To Underperform Its Industry?
and want a simplistic look at the return on Sonam Clock Limited (NSE:SONAMCLOCK) stock. … Sonam Clock Limited’s (NSE:SONAMCLOCK) most recent return on equity was a substandard 8.63% relative to its industry performance of 12.43% over the past year. … Today I will look at how components such as financial leverage can influence ROE which may impact the sustainability of SONAMCLOCK's returns.
Sonam Clock Limited manufactures and sells horological items, clocks, clock movements, and related items in India. It offers products, such as alarm time pieces, classy dial clocks, corporate clocks, designer clocks, divine clocks, divine tune clocks, economy clocks, LCD clocks, LED digital clocks, light sensor clocks, musical clocks, office clocks, pendulum clocks, picture dial clocks, regular clocks, rotating pendulum musical clocks, SQ series sweep clocks, sweep office clocks, and table clocks under the Sonam Quartz brand name. The company also exports its products to 25 countries. Sonam Clock Limited was founded in 1996 and is based in Morbi, India.
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