Discounted Cash Flow Calculation for NSEI:WHIRLPOOL using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Whirlpool of India
is arrived at by discounting future cash flows to their present value using the 2 stage method. We use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
NSEI:WHIRLPOOL DCF 1st Stage: Next 5 year cash flow forecast
The current share price of
Whirlpool of India
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
Whirlpool of India's
is considered below, and whether this is a fair price.
Price based on past earnings
Whirlpool of India's earnings available for a low price, and how does
this compare to other companies in the same industry?
Whirlpool of India's earnings are expected to grow by 17.9% yearly, however this is not considered high growth (20% yearly).
Whirlpool of India's revenue is expected to grow by 12.1% 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.
Whirlpool of India'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.
Whirlpool of India
has a total score of
3/6, 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
Whirlpool of India's finances.
The net worth of a company is the difference between its assets and liabilities.
Whirlpool of India is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Whirlpool of India's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Whirlpool of India'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.
Whirlpool of India has no debt, it does not need to be covered by short term assets.
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.
TENURE AS CEO
Mr. Sunil A. D’souza has been the Managing Director of Whirlpool of India Limited since June 22, 2015. Mr. D’Souza joined Whirlpool from PepsiCo where he was the Head of PepsiCo's VIMAPS Business Unit based out of Malaysia. He served as Country Manager for the Philippines of PepsiCo. He has been with PepsiCo for the past 8 years. He has been Director of Whirlpool of India Limited since June 22, 2015. He served as Sales Director for the Philippines of PepsiCo. He served as a Non-Executive Director at Pepsi-Cola Products Philippines, Inc. since 2009. Mr. D’Souza holds a Bachelor of Engineering degree from the Pondicherry Engineering College, Pondicherry (University of Madras) and a Management degree from the Indian Institute of Management in Calcutta.
Sunil's compensation has increased by more than 20% in the past year.
Sunil's remuneration is higher than average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the
Whirlpool of India
management team in years:
The average tenure for the Whirlpool of India management team is over 5 years, this suggests they are a seasoned and experienced team.
MD & Director
Senior Director of Legal & Secretarial and Company Secretary
Vice President of Manufacturing & Supply Chain
Arumalla Hari Reddy
Director of Pune Plant & Executive Director
Chief Financial Officer
Chief Design Officer
Head of Service Quality & Systems and Training
Vice President of New Business & Consumer Interface
Board of Directors Tenure
Average tenure and age of the
Whirlpool of India
board of directors in years:
The tenure for the Whirlpool of India board of directors is about average.
What Kind Of Investor Owns Most Of Whirlpool of India Limited (NSE:WHIRLPOOL)?
Generally speaking, as a company grows, institutions will increase their ownership. … Conversely, insiders often decrease their ownership over time. … Companies that used to be publicly owned tend to have lower insider ownership.
Should We Be Delighted With Whirlpool of India Limited's (NSE:WHIRLPOOL) ROE Of 20%?
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.20 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Why Whirlpool of India Limited’s (NSE:WHIRLPOOL) Cash Is A Factor You Need To Consider
What is left after investment, determines the value of the stock since this cash flow technically belongs to investors of the company. … Today we will examine Whirlpool of India’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … Whirlpool of India’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure
Should We Worry About Whirlpool of India Limited's (NSE:WHIRLPOOL) P/E Ratio?
Based on the last twelve months, Whirlpool of India's P/E ratio is 46.61. … How Do I Calculate Whirlpool of India's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Does Whirlpool of India Limited's (NSE:WHIRLPOOL) 15% Earnings Growth Make It An Outperformer?
When Whirlpool of India Limited (NSE:WHIRLPOOL) announced its most recent earnings (30 September 2018), I did two things: looked at its past earnings track record, then look at what is happening in the industry. … How WHIRLPOOL fared against its long-term earnings performance and its industry. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 22%, indicating the rate at which WHIRLPOOL is growing has slowed down
Whirlpool of India Limited (NSE:WHIRLPOOL): Is Growth Priced In?
Whirlpool of India Limited (NSE:WHIRLPOOL) is considered a high growth stock. … However its last closing price of ₹1362.75 left investors wondering whether this growth has already been factored into the share price. … Analysts are predicting good growth prospects for Whirlpool of India over the next couple of years
What Do You Get For Owning Whirlpool of India Limited (NSE:WHIRLPOOL)?
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. … Therefore, looking at how efficiently Whirlpool of India is able to use capital to create earnings will help us understand your potential return. … Whirlpool of India's Return On Capital Employed
What Type Of Shareholder Owns Whirlpool of India Limited's (NSE:WHIRLPOOL)?
If you want to know who really controls Whirlpool of India Limited (NSE:WHIRLPOOL), then you'll have to look at the makeup of its share registry. … With a market capitalization of ₹173.4b, Whirlpool of India is a decent size, so it is probably on the radar of institutional investors. … Let's take a closer look to see what the different types of shareholder can tell us about WHIRLPOOL
Can Whirlpool of India Limited (NSE:WHIRLPOOL) Maintain Its Strong Returns?
We'll use ROE to examine Whirlpool of India Limited (NSE:WHIRLPOOL), by way of a worked example. … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.21 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Does Whirlpool of India Limited's (NSE:WHIRLPOOL) CEO Salary Reflect Performance?
First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Sunil D’souza's Compensation Compare With Similar Sized Companies. … According to our data, Whirlpool of India Limited has a market capitalization of ₹190.4b, and pays its CEO total annual compensation worth ₹81m.
Whirlpool of India Limited manufactures and trades in home appliances under the Whirlpool brand in India and internationally. The company primarily offers refrigerators, washing machines, air conditioners, microwave ovens, and small appliances, as well as air and water purifiers. It also provides built-in appliances, including various built-in ovens, coffee machines, cooker hoods, hobs, dishwashers, refrigerators, wine coolers, microwave hood combinations, and washers and dryers, as well as accessories. Whirlpool of India Limited also exports its products. The company was incorporated in 1960 and is based in Gurugram, India. Whirlpool of India Limited is a subsidiary of Whirlpool Mauritius Limited.
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