Discounted Cash Flow Calculation for NSEI:ZENITHEXPO 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:ZENITHEXPO 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.
Zenith Exports's share price is below the future cash flow value, and at a moderate discount (> 20%).
Zenith Exports's share price is below the future cash flow value, and 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
Zenith Exports'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 Zenith Exports 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 Luxury industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Zenith Exports's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Zenith Exports's earnings growth to the India market average as no estimate data is available.
Unable to compare Zenith Exports's revenue growth to the India market average as no estimate data is available.
Unable to determine if Zenith Exports is high growth as no earnings estimate data is available.
Unable to determine if Zenith Exports 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.
Zenith Exports'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. Raj Kumar Loyalka, B.E.E., has been Chief Executive Officer of Zenith Exports Limited since November 14, 2016. Mr. Loyalka served as a Joint Managing Director of Zenith Exports Limited until September 27, 2016 and served as its Executive Director from July 23, 1981 to November 10, 2016.
Raj's compensation has increased whilst company is loss making.
Raj'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 tenure for the Zenith Exports management team is about average.
Chairman of the Board & MD
Chief Executive Officer
Chief Financial Officer
Company Secretary & Compliance Officer
Joint MD & Additional Executive Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Zenith Exports board of directors is less than 3 years, this suggests a new board.
Imagine Owning Zenith Exports (NSE:ZENITHEXPO) And Wondering If The 13% Share Price Slide Is Justified
Given that Zenith Exports didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. … Shareholders of unprofitable companies usually expect strong revenue growth. … Over the last three years, Zenith Exports's revenue dropped 37% per year.
Are Zenith Exports Limited's (NSE:ZENITHEXPO) Interest Costs Too High?
While small-cap stocks, such as Zenith Exports Limited (NSE:ZENITHEXPO) with its market cap of ₹415.24m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … the current state of its operations and pathway to profitability.
Zenith Exports Limited (NSE:ZENITHEXPO): Time For A Financial Health Check
With this reduction in debt, ZENITHEXPO currently has ₹160.87M remaining in cash and short-term investments , ready to deploy into the business. … Additionally, ZENITHEXPO has generated cash from operations of ₹161.11M in the last twelve months, resulting in an operating cash to total debt ratio of 209.57%, meaning that ZENITHEXPO’s current level of operating cash is high enough to cover debt. … Investors' risk associated with debt is virtually non-existent with ZENITHEXPO, and the company has plenty of headroom and ability to raise debt should it need to in the future.Next Steps: ZENITHEXPO’s high cash coverage and low debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow.
Zenith Exports Limited designs, manufactures, and sells fabrics to furnishing and fashion trades, editors, and jobbers in India. The company offers a range of silk, velvet, damask, embroidery, weave, and sheer fabrics. It also provides industrial leather hand gloves, cotton fabrics, and made-ups. The company also exports its products. Zenith Exports Limited was founded in 1969 and is headquartered in Kolkata, India.
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