Discounted Cash Flow Calculation for NSEI:SUULD 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:SUULD 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
Suumaya Lifestyle's earnings available for a low price, and how does
this compare to other companies in the same industry?
Suumaya Lifestyle's earnings are expected to grow by 17.3% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Suumaya Lifestyle 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.
Suumaya Lifestyle'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
Suumaya Lifestyle's finances.
The net worth of a company is the difference between its assets and liabilities.
Suumaya Lifestyle is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Suumaya Lifestyle's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Suumaya Lifestyle'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.
Low level of unsold assets.
Debt is covered by short term assets, assets are 49.2x 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.
Should Suumaya Lifestyle Limited’s (NSE:SUULD) Weak Investment Returns Worry You?
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is 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.
Do Insiders Own Lots Of Shares In Suumaya Lifestyle Limited (NSE:SUULD)?
A look at the shareholders of Suumaya Lifestyle Limited (NSE:SUULD) can tell us which group is most powerful. … Generally speaking, as a company grows, institutions will increase their ownership. … See our latest analysis for Suumaya Lifestyle
Despite Its High P/E Ratio, Is Suumaya Lifestyle Limited (NSE:SUULD) Still Undervalued?
To keep it practical, we'll show how Suumaya Lifestyle Limited's (NSE:SUULD) P/E ratio could help you assess the value on offer. … Suumaya Lifestyle has a P/E ratio of 40.32, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Suumaya Lifestyle Limited (NSE:SUULD): A Look At Return On Capital
and want to begin learning the link between Suumaya Lifestyle Limited (NSE:SUULD)’s return fundamentals and stock market performance. … Therefore, looking at how efficiently Suumaya Lifestyle 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).
Suumaya Lifestyle Limited (NSE:SUULD): Can It Deliver A Superior ROE To The Industry?
and looking to gauge the potential return on investment in Suumaya Lifestyle Limited (NSE:SUULD). … Suumaya Lifestyle Limited (NSE:SUULD) generated a below-average return on equity of 1.92% in the past 12 months, while its industry returned 7.44%. … Knowing these components could change your view on SUULD’s performance
Suumaya Lifestyle Limited manufactures, retails, and wholesales fabrics and garments in India. It offers designer wear of women, such as kurtis, ethnic tops, salwar suits, etc. Suumaya Lifestyle markets its products under the ekka, ira, and tag 9 brands. The company was formerly known as Richway International Trade Limited and changed its name to Suumaya Lifestyle Limited in June 2017. Suumaya Lifestyle Limited was founded in 2011 and is based in Mumbai, India.
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