Interworld Digital Limited engages in the information technology, entertainment, and electronic media businesses primarily in India.
The last earnings update was 8 days ago.
More info.
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Interworld Digital
to its discounted cash flow analysis.value.
The discounted cash flow value is simply looking at what the company is worth
today, based on estimates of how much money it is expected to make in the
future.
Discounted Cash Flow Calculation for BSE:532072 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Interworld Digital
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.
BSE:532072 DCF 1st Stage: Next 5 year cash flow forecast
= Present value of next 5 years cash flows +
Terminal Value
=
₹5.40 +
₹9.42
₹14.83
Equity Value per Share (INR)
= Total value / Shares Outstanding
= ₹14.83 /
478.38
₹0.03
BSE:532072 Discount to Share Price
Calculation
Result
Value per share (INR)
From above.
₹0.03
Current discount
Discount to share price of
₹0.15
= -1 x (₹0.15 - ₹0.03) / ₹0.03
-384%
Learn more about our DCF calculations in Simply Wall St’s
analysis model
.
The current share price of
Interworld Digital
is above its future cash flow value.
Often investors are willing to pay a
premium
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
Interworld Digital's
earnings,
growth
and
assets
is considered below, and whether this is a fair price.
Price based on past earnings
Are
Interworld Digital'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 Interworld Digital 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
growth
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
it right!
30%
Expected Entertainment industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is
Interworld Digital
expected to grow at an
attractive
rate?
Unable to compare Interworld Digital's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Interworld Digital's earnings growth to the India market average as no estimate data is available.
Unable to compare Interworld Digital's revenue growth to the India market average as no estimate data is available.
Unable to determine if Interworld Digital is high growth as no earnings estimate data is available.
Unable to determine if Interworld 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.
All data from Interworld Digital Company Filings, last reported 1 month ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
BSE:532072 Past Financials Data
Date (Data in INR Millions)
EPS *
2018-12-31
-0.02
2018-09-30
-0.04
2018-06-30
2018-03-31
-0.03
2017-12-31
-0.02
2017-09-30
2017-06-30
2017-03-31
-0.02
2016-12-31
-0.02
2016-09-30
-0.03
2016-06-30
-0.04
2016-03-31
-0.01
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
Unable to establish if Interworld Digital will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Next steps:
Examine Interworld Digital's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
Interworld Digital's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors.
Take a look at other high-growth Media companies here
Interworld Digital's competitive advantages and company strategy can generally be found in its financial reports archived here.
We assess
Interworld Digital's future performance by looking at:
Is the annual earnings growth rate expected to beat the low risk savings rate, plus a
premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making
in the relevant year.
Interworld Digital
has a total score of
0/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Below we compare
Interworld Digital's growth in the last year to its industry (Entertainment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it
has maintained that growth in the year.
Interworld Digital does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
Unable to compare Interworld Digital's 1-year earnings growth to the 5-year average as it is not currently profitable.
Unable to compare Interworld Digital's 1-year growth to the IN Entertainment industry average as it is not currently profitable.
Earnings and Revenue History
Interworld Digital's
revenue
and
profit
over the past 5 years is shown below, any years where they have experienced a
loss will show up in red.
All data from Interworld Digital Company Filings, last reported 1 month ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
BSE:532072 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions)
Revenue
Net Income *
G+A Expenses
R&D Expenses
2018-12-31
-1.98
-16.50
0.06
2018-09-30
-1.90
-16.43
0.06
2018-06-30
-1.40
-15.42
2018-03-31
0.42
-13.90
0.06
2017-12-31
2.01
-8.79
0.99
2017-09-30
2.04
-9.35
0.99
2017-06-30
2.37
-8.99
2017-03-31
0.72
-11.35
0.08
2016-12-31
1.25
-10.67
1.47
2016-09-30
3.14
-10.29
1.47
2016-06-30
4.79
-9.70
2016-03-31
67.40
-6.62
1.47
2015-12-31
152.67
-2.11
4.24
2015-09-30
160.23
0.01
4.24
2015-06-30
165.43
0.78
2015-03-31
142.97
1.14
4.49
2014-12-31
100.72
3.01
5.18
2014-09-30
135.14
3.66
5.18
2014-06-30
169.01
3.81
2014-03-31
168.22
4.66
4.71
2013-12-31
177.64
4.39
6.41
2013-09-30
191.15
4.65
6.41
2013-06-30
175.10
5.36
2013-03-31
159.74
4.23
6.60
2012-09-30
103.97
2.36
3.64
2012-06-30
109.23
1.26
3.57
2012-03-31
115.21
1.82
3.64
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
It is difficult to establish if Interworld Digital has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
It is difficult to establish if Interworld Digital has efficiently used its assets last year compared to the IN Entertainment industry average (Return on Assets) as it is loss-making.
It is difficult to establish if Interworld Digital improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
We assess
Interworld 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
Entertainment
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.
Interworld Digital
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.
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).
The boxes below represent the relative size of what makes up
Interworld Digital's finances.
The net worth of a company is the difference between its assets and liabilities.
Net Worth
Interworld Digital is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Interworld Digital's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of
Interworld Digital'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
checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 48.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
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.
All data from Interworld Digital Company Filings, last reported 1 month ago.
BSE:532072 Past Debt and Equity Data
Date (Data in INR Millions)
Total Equity
Total Debt
Cash & Short Term Investments
2018-12-31
1,226.66
5.06
2.04
2018-09-30
1,226.66
5.06
2.04
2018-06-30
1,230.73
15.25
0.09
2018-03-31
1,230.72
15.71
0.01
2017-12-31
1,243.09
15.50
0.18
2017-09-30
1,243.09
15.50
0.18
2017-06-30
2017-03-31
1,244.62
16.66
0.13
2016-12-31
2016-09-30
2016-06-30
2016-03-31
1,255.97
15.92
1.40
2015-12-31
1,262.74
17.78
0.84
2015-09-30
1,262.74
17.78
0.84
2015-06-30
1,262.60
17.72
1.22
2015-03-31
1,262.60
19.04
1.22
2014-12-31
1,265.28
31.13
0.37
2014-09-30
1,265.28
31.13
0.37
2014-06-30
1,264.00
31.37
1.52
2014-03-31
1,264.00
31.37
1.52
2013-12-31
2013-09-30
2013-06-30
2013-03-31
1,259.34
27.68
2.55
2012-09-30
2012-06-30
2012-03-31
745.73
25.21
1.22
Interworld Digital's level of debt (0.4%) compared to net worth is satisfactory (less than 40%).
The level of debt compared to net worth has been reduced over the past 5 years (2.4% vs 0.4% today).
CASH RUNWAY ANALYSIS
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Whilst loss making Interworld Digital has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
Whilst loss making Interworld Digital has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 110.1% per year.
We assess
Interworld Digital's financial health by checking for:
Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest
at all)? (1 check)
Interworld Digital
has a total score of
6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
0%
Current annual income from
Interworld Digital
dividends.
If you bought
₹2,000 of
Interworld Digital
shares you are expected to receive
₹0
in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you
can get in a
savings account?
It is up there with the
best dividend paying companies?
Unable to evaluate Interworld Digital's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
Unable to evaluate Interworld Digital's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.
We also check to see if the dividend has increased in the past 10 years.
We assess
Interworld Digital's dividend by checking for:
Firstly is the company paying a notable dividend (greater than 0.3%) - if
not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the
dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1
check)
How sustainable is the dividend, can
Interworld Digital
afford to pay it from its earnings today and in 3 years (Payout ratio less than
90%)? (2 checks)
Interworld Digital
has a total score of
0/6, see the detailed checks below.
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.
CEO
ManojKumar
COMPENSATION
₹0
AGE
50
TENURE AS CEO
1.3 years
CEO Bio
Mr. Manoj Kumar has been the Chief Executive Officer of Interworld Digital Limited since November 14, 2017.
CEO Compensation
Insufficient data for Manoj to compare compensation growth.
Manoj's remuneration is lower than average for companies of similar size in India.
Management Team Tenure
Average tenure of the
Interworld Digital
management team in years:
1.6
Average Tenure
The average tenure for the Interworld Digital management team is less than 2 years, this suggests a new team.
Management Team
Manoj Kumar
TITLE
Chief Executive Officer
AGE
50
TENURE
1.3 yrs
Rachit Garg
TITLE
Chief Financial Officer
TENURE
1.6 yrs
Shweta Chawla
TITLE
Compliance Officer & Company Secretary
TENURE
2.6 yrs
Board of Directors Tenure
Average tenure and age of the
Interworld Digital
board of directors in years:
3.6
Average Tenure
46
Average Age
The tenure for the Interworld Digital board of directors is about average.
Interworld Digital Limited engages in the information technology, entertainment, and electronic media businesses primarily in India. The company is involved in the motion picture, video, and T.V. programme activities, including digital distribution for direct projection in theaters or for broadcasting on T.V. It also provides Digi Cine, a pay as you go model based services; and IT enabled and digital cinema services. The company serves corporates and class of person. The company was formerly known as Interworld.Com Ltd. and changed its name to Interworld Digital Limited in 2005. Interworld Digital Limited was incorporated in 1995 and is based in New Delhi, India.
Interworld Digital Limited
701, Arunachal Building,
19, Barakhamba Road,
New Delhi,
Delhi, 110001,
India
Listings
Exchange Symbol
Ticker Symbol
Security
Exchange
Country
Currency
Listed on
BSE
532072
Equity Shares
Mumbai Stock Exchange
IN
INR
04. Jan 2005
Number of employees
Current staff
4
Interworld Digital
employees.
Industry
Movies and Entertainment
Media
Company Analysis and Financial Data Status
Area
Date (UTC time)
Company Analysis updated:
2019/02/22 12:34
End of day share price update:
2019/02/22 00:00
Last earnings filing:
2019/02/14
Last earnings reported:
2018/12/31
Last annual earnings reported:
2018/03/31
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.