Discounted Cash Flow Calculation for NSEI:ZEELEARN 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:ZEELEARN 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.
Zee Learn's share price is below the future cash flow value, and at a moderate discount (> 20%).
Zee Learn'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
Zee Learn's earnings available for a low price, and how does
this compare to other companies in the same industry?
Zee Learn's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Unable to determine if Zee Learn 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.
Zee Learn'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
3/6, 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. Debshankar Brata Mukhopadhyay, also known as Deb, has been the Chief Executive Officer at Zee Learn Limited since July 01, 2016. Mr. Mukhopadhyay serves as General Manager of Bank of Baroda. He is an Additional Executive Director of MT Educare Limited since August 9, 2018.
Deb's compensation has increased by more than 20% in the past year.
Deb'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 Zee Learn management team is about average.
Chief Executive Officer
Chief Financial Officer
Compliance Officer & Company Secretary
MD & Executive Director
Head of Human Resources
Head of Information Technology
Business Head of SAT
Head of Supply Chain
Head of Content & Curriculum
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Zee Learn board of directors is about average.
Did You Manage To Avoid Zee Learn's (NSE:ZEELEARN) 21% Share Price Drop?
Unfortunately the Zee Learn Limited (NSE:ZEELEARN) share price slid 21% over twelve months. … Shareholders have had an even rougher run lately, with the share price down 18% in the last 90 days. … During the unfortunate twelve months during which the Zee Learn share price fell, it actually saw its earnings per share (EPS) improve by 22%.
Why Zee Learn Limited’s (NSE:ZEELEARN) Return On Capital Employed Looks Uninspiring
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Is Zee Learn Limited (NSE:ZEELEARN) A High Quality Stock To Own?
This article is for those who would like to learn about Return On Equity (ROE). … Another way to think of that is that for every ₹1 worth of equity in the company, it was able to earn ₹0.11. … Return on Equity = Net Profit ÷ Shareholders' Equity
Who Owns Most Of Zee Learn Limited (NSE:ZEELEARN)?
In this article, I'm going to take a look at Zee Learn Limited’s (NSE:ZEELEARN) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … Ownership structure of a company has been found to affect share performance over time. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders.
Should You Be Concerned About Zee Learn Limited's (NSE:ZEELEARN) Earnings Growth?
When Zee Learn Limited (NSE:ZEELEARN) released its most recent earnings update (31 March 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … Being able to interpret how well Zee Learn has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. … ZEELEARN's trailing twelve-month earnings (from 31 March 2018) of ₹492.79m has
Zee Learn Limited (NSE:ZEELEARN) Delivered A Better ROE Than The Industry, Here’s Why
Zee Learn Limited (NSE:ZEELEARN) delivered an ROE of 13.95% over the past 12 months, which is an impressive feat relative to its industry average of 3.59% during the same period. … If ZEELEARN borrows debt to invest in its business, its profits will be higher. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface
Zee Learn Limited, together with its subsidiaries, operates in the education industry in India. The company operates through Educational, Construction and Leasing for Education, and Training Manpower and Related Activities segments. It operates Kidzee, a chain of approximately 1825 preschools in approximately 750 cities; Mount Litera World Preschool, an international standard preschool; Mount Litera Zee schools, a chain of schools in the private-unaided category with approximately 122 schools in approximately 100 cities; and Mount Litera International schools. The company also operates Zee Institute of Creative Art, a classical and digital animation training academy that trains youth in classical 2D and modern 3D animation; and Zee Institute of Media Arts, a TV and film training institute that offers diploma courses in direction, acting, sound, editing, production, cinematography, film animation, and visual effects, as well as provides training of other software, such as Autodesk, Smoke, and Flame. In addition, it provides consultancy and advisory services in the area of human resources, such as manpower placement, recruitment, selection, business process, and others. Further, the company offers online education and testing services. Additionally, it engages in the construction and leasing of properties for commercial use. Zee Learn Limited was incorporated in 2010 and is based in Mumbai, India.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.