Discounted Cash Flow Calculation for NSEI:FDC 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:FDC DCF 1st Stage: Next 10 year cash flow forecast
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
FDC's earnings available for a low price, and how does
this compare to other companies in the same industry?
FDC's earnings are expected to grow by 13.2% yearly, however this is not considered high growth (20% yearly).
FDC's revenue is expected to grow by 9.4% yearly, however this is not considered high growth (20% yearly).
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.
FDC'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
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Is FDC Limited's (NSE:FDC) CEO Paid At A Competitive Rate?
This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Mohan Chandavarkar's Compensation Compare With Similar Sized Companies. … Our data indicates that FDC Limited is worth ₹31b, and total annual CEO compensation is ₹21m.
This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Mohan Chandavarkar's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that FDC Limited has a market cap of ₹32b, and is paying total annual CEO compensation of ₹21m.
Can We See Significant Insider Ownership On The FDC Limited (NSE:FDC) Share Register?
The big shareholder groups in FDC Limited (NSE:FDC) have power over the company. … Generally speaking, as a company grows, institutions will increase their ownership. … Taking a look at the our data on the ownership groups (below), it's seems that.
Is FDC Limited's (NSE:FDC) 14% ROE Strong Compared To Its Industry?
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every ₹1 worth of shareholders' equity, it generated ₹0.14 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Does FDC Limited's (NSE:FDC) PE Ratio Signal A Buying Opportunity?
and want to learn about the link between company’s fundamentals and stock market performance. … While this makes FDC appear like a good stock to buy, you might change your mind after I explain the assumptions behind the P/E ratio. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio
Does FDC Limited's (NSE:FDC) CEO Pay Reflect Performance?
Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor. … CEOs leading companies of similar size and profitability
Why FDC Limited's (NSE:FDC) Investor Composition Impacts Your Returns
Today, I will be analyzing FDC Limited’s (NSE:FDC) recent ownership structure, an important but not-so-popular subject among individual investors. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … 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.
What is Behind FDC Limited's (NSE:FDC) Superior ROE?
The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want a simplistic look at the return on FDC Limited (NSE:FDC) stock. … With an ROE of 13.60%, FDC Limited (NSE:FDC) returned in-line to its own industry which delivered 10.69% over the past year.
How FDC Limited (NSE:FDC) Can Add Value To Your Portfolio
As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.
FDC Limited's (NSE:FDC) Earnings Dropped -7.97%, How Did It Fare Against The Industry?
Below, I will assess FDC's latest performance announced on 31 March 2018 and weight these figures against its longer term trend and industry movements. … I look at the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. … Since these figures may be somewhat short-term, I’ve calculated an annualized five-year figure for FDC's earnings, which stands at ₹1.58B This means while earnings growth was negative against last year, over a longer period of time, FDC's earnings have been increasing on average.
FDC Limited manufactures and markets pharmaceutical products in India and internationally. The company offers specialized formulations for various therapeutic segments, including anti-infective, gastrointestinal, ophthalmological, vitamins/minerals/dietary supplements, cardiac, anti-diabetes, respiratory, gynecology, dermatology, analgesics, and others; and oral rehydration salts. It provides specialized formulations primarily under the Zifi, Electral, Enerzal, Vitcofol, Pyrimon, Zocon, Zoxan, Zathrin, Zipod, Zefu, Cotaryl, and Mycoderm brand names. The company also offers anti-oxidants, balanced energy drinks, and vitamins and nutraceuticals under the MMO3, Enerzal, Humyl, Mum Mum 1, Prosoyal, Simyl-LBW, Simyl-MCT, and Zefrich brands. In addition, it provides various active pharmaceutical ingredients. The company was founded in 1936 and is headquartered in Mumbai, India.
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