Discounted Cash Flow Calculation for NSEI:PAISALO using Excess Returns Model Model
The calculations below outline how an intrinsic value for Paisalo Digital is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
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
Paisalo Digital's earnings available for a low price, and how does
this compare to other companies in the same industry?
Paisalo Digital's earnings are expected to grow by 1% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Paisalo Digital 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.
Paisalo Digital'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.
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 Agarwal has been the Managing Director of SE Investments Ltd. since February 20, 2008 and serves as it's Executive Director. Mr. Agarwal is responsible for the business and brand building of the Company. He has been associated with the brand name of Delhi Public School, which has been promoted by reputed Delhi Public School Society of Delhi. He held the position of Pro-Vice Chairman of Delhi Public School, Agra and Raj Nagar, Ghaziabad. He holds B. Com from St. John's College, Agra.
Sunil's compensation has been consistent with company performance over the past year.
Sunil's remuneration is higher than average for companies of similar size in India.
MD & Executive Director
CFO & Executive Director
Compliance Officer & Company Secretary
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Paisalo Digital board of directors is less than 3 years, this suggests a new board.
Board of Directors
CFO & Executive Director
MD & Executive Director
Non-Executive Independent Director
Additional Non-Executive Woman Independent Director
Can You Imagine How Paisalo Digital's (NSE:PAISALO) Shareholders Feel About The 63% Share Price Increase?
For example, the Paisalo Digital Limited (NSE:PAISALO) share price is up 63% in the last three years, clearly besting than the market return of around 47% (not including dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Paisalo Digital was able to grow its EPS at 10% per year over three years, sending the share price higher.
Despite Its High P/E Ratio, Is Paisalo Digital Limited (NSE:PAISALO) Still Undervalued?
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at Paisalo Digital Limited's (NSE:PAISALO) P/E ratio and reflect on what it tells us about the company's share price. … How Do I Calculate Paisalo Digital's Price To Earnings Ratio
Is Paisalo Digital Limited's (NSE:PAISALO) CEO Pay Fair?
This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Sunil Agarwal's Compensation Compare With Similar Sized Companies. … According to our data, Paisalo Digital Limited has a market capitalization of ₹12b, and pays its CEO total annual compensation worth ₹29m.
Should Paisalo Digital Limited's (NSE:PAISALO) Recent Earnings Worry You?
Assessing Paisalo Digital Limited's (NSE:PAISALO) past track record of performance is an insightful exercise for investors. … Today I will assess PAISALO's recent performance announced on 31 March 2018 and evaluate these figures to its long-term trend and industry movements. … View our latest analysis for Paisalo Digital?
Is It Time To Buy Paisalo Digital Limited (NSE:PAISALO) Based Off Its PE Ratio?
and want to begin learning the link between Paisalo Digital Limited (NSE:PAISALO)’s fundamentals and stock market performance. … Paisalo Digital Limited (NSE:PAISALO) is currently trading at a trailing P/E of 21.1x, which is lower than the industry average of 27x. … While PAISALO might seem like an attractive stock to buy, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions
Interested In Paisalo Digital Limited (NSE:PAISALO)? Here's What Its Recent Performance Looks Like
After looking at Paisalo Digital Limited's (NSEI:PAISALO) latest earnings update (31 March 2018), I found it helpful to revisit the company's performance in the past couple of years and compare this against the latest numbers. … Given that these values are relatively nearsighted, I have calculated an annualized five-year figure for Paisalo Digital's earnings, which stands at ₹567.10M This means that, on average, Paisalo Digital has been able to increasingly raise its net income over the last couple of years as well. … In the past couple of years, Paisalo Digital top-line expansion has overtaken earnings and the growth rate of expenses.
Paisalo Digital Limited provides business loans, SME and MSME loans, and income generation loans for business/self-employment purpose in India. It offers income generation loans for purchasing seeds, fodder, cattle’s, etc.; and Paisalo-Jlg loans for agriculture and allied sector. The company was formerly known as S. E. Investments Limited and changed its name to Paisalo Digital Limited in January 2018. Paisalo Digital Limited was founded in 1992 and is headquartered in Agra, 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.