Discounted Cash Flow Calculation for NSEI:TCNSBRANDS 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:TCNSBRANDS 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
TCNS Clothing's earnings available for a low price, and how does
this compare to other companies in the same industry?
TCNS Clothing's earnings are expected to grow by 12.7% yearly, however this is not considered high growth (20% yearly).
TCNS Clothing's revenue is expected to grow by 18.9% 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.
TCNS Clothing'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
6/6, 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. Anant Kumar Daga serves as the Managing Director of TCNS Clothing Co. Limited and has been its Director since September 7, 2016. Mr. Daga holds a bachelor’s degree in commerce from the University of Calcutta and a post-graduate diploma in management from Indian Institute of Management, Ahmedabad. He joined TCNS Clothing as the Chief Executive Officer with effect from March 16, 2010. Prior to that, has worked with Reebok, India as director (sales) and with ICICI bank. He also features in the Economic Times’ 40 under 40 list of India’s hottest business leaders for 2017 and has been awarded the “Brand Professional of the Year Award” at the CMAI Apex Awards 2017.
Insufficient data for Anant to compare compensation growth.
Insufficient data for Anant to establish whether their remuneration is reasonable compared to companies of similar size in India.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the TCNS Clothing management team is less than 2 years, this suggests a new team.
Founder & Chairman
MD & Director
Chief Financial Officer
Company Secretary & Compliance Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the TCNS Clothing board of directors is less than 3 years, this suggests a new board.
Can We See Significant Insider Ownership On The TCNS Clothing Co. Limited (NSE:TCNSBRANDS) Share Register?
The big shareholder groups in TCNS Clothing Co. … With a market capitalization of ₹50b, TCNS Clothing is a small cap stock, so it might not be well known by many institutional investors. … Check out our latest analysis for TCNS Clothing
Should We Worry About TCNS Clothing Co. Limited's (NSE:TCNSBRANDS) P/E Ratio?
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … TCNS Clothing has a price to earnings ratio of 42.01, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Why We Think TCNS Clothing Co. Limited (NSE:TCNSBRANDS) Could Be Worth Looking At
Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on TCNS Clothing Co. … Below, I've touched on some key aspects you should know on a high level
TCNS Clothing Co. Limited (NSE:TCNSBRANDS) Earns Among The Best Returns In Its Industry
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)? … Analysts use this formula to calculate return on capital employed:
What Kind Of Investor Owns Most Of TCNS Clothing Co. Limited (NSE:TCNSBRANDS)?
The big shareholder groups in TCNS Clothing Co. … TCNS Clothing is a smaller company with a market capitalization of ₹44b, so it may still be flying under the radar of many institutional investors. … Our analysis of the ownership of the company, below, shows that.
Can TCNS Clothing Co. Limited (NSE:TCNSBRANDS) Maintain Its Strong Returns?
TCNS Clothing has a ROE of 20%, based on the last twelve months. … That means that for every ₹1 worth of shareholders' equity, it generated ₹0.20 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
TCNS Clothing Co Limited (NSE:TCNSBRANDS) Has Attractive Fundamentals
Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on TCNS Clothing Co Limited (NSE:TCNSBRANDS) due to its excellent fundamentals in more than one area.
Is TCNS Clothing Co Limited's (NSE:TCNSBRANDS) High P/E Ratio A Problem For Investors?
To keep it practical, we'll show how TCNS Clothing Co Limited's (NSE:TCNSBRANDS) P/E ratio could help you assess the value on offer. … How Do I Calculate TCNS Clothing's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Is It Too Late To Buy TCNS Clothing Co Limited (NSE:TCNSBRANDS) At Its November Price?
TCNS Clothing Co Limited (NSE:TCNSBRANDS) is considered a high growth stock. … However its last closing price of ₹628.3 left investors wondering whether this growth has already been factored into the share price. … One reason why investors are attracted to TCNSBRANDS is the high growth potential in the near future
TCNS Clothing Co Limited (NSE:TCNSBRANDS): A Look At Solid Capital Returns
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. … To understand TCNS Clothing’s capital returns we will look at a useful metric called return on capital employed. … TCNS Clothing's Return On Capital Employed
TCNS Clothing Co. Limited designs, manufactures, markets, and retails women’s branded apparel. Its product portfolio includes top-wear, bottom-wear, drapes, combination-sets, and accessories that caters to various Indian woman, including every-day wear, casual wear, work wear, and occasion wear. As of March 31, 2018, the company sold its products under the W and Aurelia brands through 281 and 183 exclusive brand outlets, as well as Wishful brand through 1 exclusive brand outlet; through 1,469 large format stores; 1,522 multi-brand outlets; and online channels comprising online retailers and its Websites. It also sells its products through six exclusive brand outlets in Nepal, Mauritius, and Sri Lanka. TCNS Clothing Co. Limited was founded in 1972 and is based in New Delhi, India.
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