Discounted Cash Flow Calculation for NSEI:RADAAN using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Radaan Mediaworks 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:RADAAN DCF 1st Stage: Next 5 year cash flow forecast
The current share price of
Radaan Mediaworks 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
Radaan Mediaworks India's
is considered below, and whether this is a fair price.
Price based on past earnings
Radaan Mediaworks India's earnings available for a low price, and how does
this compare to other companies in the same industry?
Radaan Mediaworks India's earnings are expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Radaan Mediaworks India 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.
Radaan Mediaworks 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.
Radaan Mediaworks India
has a total score of
1/6, 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
Radaan Mediaworks India's finances.
The net worth of a company is the difference between its assets and liabilities.
Radaan Mediaworks India is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Radaan Mediaworks India's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Radaan Mediaworks 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.
Low level of unsold assets.
Debt is covered by short term assets, assets are 1.7x debt.
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.
Did Radaan Mediaworks India Limited (NSE:RADAAN) Use Debt To Deliver Its ROE Of 4.1%?
By way of learning-by-doing, we'll look at ROE to gain a better understanding of Radaan Mediaworks India Limited (NSE:RADAAN). … Our data shows Radaan Mediaworks India has a return on equity of 4.1% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
Radaan Mediaworks India Limited (NSE:RADAAN): What Are Investors Earning On Their Capital?
and want to begin learning the link between Radaan Mediaworks India Limited (NSE:RADAAN)’s return fundamentals and stock market performance. … Radaan Mediaworks India stock represents an ownership share in the company. … Thus, to understand how your money can grow by investing in Radaan Mediaworks India, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)
Do Insiders Own Lots Of Shares In Radaan Mediaworks India Limited (NSE:RADAAN)?
If you want to know who really controls Radaan Mediaworks India Limited (NSE:RADAAN), then you'll have to look at the makeup of its share registry. … With a market capitalization of ₹69m, Radaan Mediaworks India is a small cap stock, so it might not be well known by many institutional investors. … See our latest analysis for Radaan Mediaworks India
Why Radaan Mediaworks India Limited (NSE:RADAAN) Delivered An Inferior ROE Compared To The Industry
Radaan Mediaworks India Limited (NSE:RADAAN) delivered a less impressive 3.9% ROE over the past year, compared to the 8.1% return generated by its industry. … An investor may attribute an inferior ROE to a relatively inefficient performance, and whilst this can often be the case, knowing the nuts and bolts of the ROE calculation may change that perspective and give you a deeper insight into RADAAN's past performance. … See our latest analysis for Radaan Mediaworks India
Has Radaan Mediaworks India Limited's (NSE:RADAAN) Earnings Momentum Changed Recently?
Assessing Radaan Mediaworks India Limited's (NSE:RADAAN) past track record of performance is a useful exercise for investors. … Below, I assess RADAAN's latest performance announced on 31 March 2018 and evaluate these figures to its historical trend and industry movements. … See our latest analysis for Radaan Mediaworks India?
Radaan Mediaworks India Limited (NSE:RADAAN): Time For A Financial Health Check
Radaan Mediaworks India Limited (NSE:RADAAN) is a small-cap stock with a market capitalization of ₹77.28m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is
Should You Be Tempted To Buy Radaan Mediaworks India Limited (NSE:RADAAN) At Its Current PE Ratio?
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for RADAAN Price per share = ₹1.75 Earnings per share = ₹0.13 ∴ Price-Earnings Ratio = ₹1.75 ÷ ₹0.13 = 13.5x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … Since RADAAN's P/E of 13.5x is lower than its industry peers (22.9x), it means that investors are paying less than they should for each dollar of RADAAN's earnings. … For example, if you are inadvertently comparing lower risk firms with RADAAN, then RADAAN’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price.
What Should Investors Know About Radaan Mediaworks India Limited's (NSE:RADAAN) Capital Returns?
To understand Radaan Mediaworks India’s capital returns we will look at a useful metric called return on capital employed. … Check out our latest analysis for Radaan Mediaworks India ROCE: Explanation and Calculation You only have a finite amount of capital to invest, so there are only so many companies that you can add to your portfolio. … I have calculated Radaan Mediaworks India’s ROCE for you below: ROCE Calculation for RADAAN Return on Capital Employed (ROCE) = Earnings Before Tax (EBT) ÷ (Capital Employed) Capital Employed = (Total Assets - Current Liabilities) ∴ ROCE = ₹7.94M ÷ (₹374.92M - ₹110.34M) = 3.00% The calculation above shows that RADAAN’s earnings were 3.00% of capital employed.
What You Must Know About Radaan Mediaworks India Limited's (NSE:RADAAN) Major Investors
Today, I will be analyzing Radaan Mediaworks India Limited’s (NSEI:RADAAN) recent ownership structure, an important but not-so-popular subject among individual investors. … Check out our latest analysis for Radaan Mediaworks India NSEI:RADAAN Ownership_summary Apr 16th 18 Insider Ownership I find insiders are another important group of stakeholders, who are directly involved in making key decisions related to the use of capital. … Private Company Ownership Potential investors in RADAAN should also look at another important group of investors: private companies, with a stake of 11.64%, who are primarily invested because of strategic and capital gain interests.
What Investors Should Know About Radaan Mediaworks India Limited's (NSE:RADAAN) Financial Strength
How does RADAAN’s operating cash flow stack up against its debt? … On top of this, RADAAN has produced cash from operations of ₹10.89M during the same period of time, leading to an operating cash to total debt ratio of 12.64%, signalling that RADAAN’s operating cash is not sufficient to cover its debt. … For RADAAN, the ratio of 1.85x suggests that interest is not strongly covered, which means that lenders may refuse to lend the company more money, as it is seen as too risky in terms of default.Next Steps: RADAAN’s debt and cash flow levels indicate room for improvement.
Radaan Mediaworks India Limited operates in the media and entertainment industry in India, Sri Lanka, Malaysia, Singapore, and the United Kingdom. The company is involved in the production of content for tele-serials/films, digital content, events, game shows, etc.; distribution of films; theatrical play activities; and setting up of acting course. It produces serials in Tamil, Telugu, Malayalam, Hindi, Kannada, and Gujarati languages. Radaan Mediaworks India Limited was founded in 1994 and is based in Chennai, India.
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