Discounted Cash Flow Calculation for NSEI:KOLTEPATIL 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:KOLTEPATIL 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.
Kolte-Patil Developers's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Kolte-Patil Developers's share price is below the future cash flow value, but not 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
Kolte-Patil Developers's earnings available for a low price, and how does
this compare to other companies in the same industry?
Kolte-Patil Developers's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Unable to determine if Kolte-Patil Developers 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.
Kolte-Patil Developers'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.
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
Kolte-Patil Developers's finances.
The net worth of a company is the difference between its assets and liabilities.
Kolte-Patil Developers is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Kolte-Patil Developers's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Kolte-Patil Developers'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.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 3.7x 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.
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. Gopal Sarda has been Group Chief Executive Officer at Kolte-Patil Developers Limited since February 03, 2017. Mr. Sarda served as Group President and Chief Executive Officer of Mumbai at Kolte-Patil Developers Limited since June 15, 2016 until February 3, 2017. Mr. Sarda served as Regional Head of Mumbai and Vice President at Kolte-Patil Developers Limited. Mr. Sarda has 10 years of experience and served as Finance Head of Eiffel Developers and Realtors. He holds M. Com and CA.
Gopal's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Gopal'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 Kolte-Patil Developers management team is about average.
Chairman & MD
Group Chief Executive Officer
Chief Financial Officer
Company Secretary & Compliance Officer
Vice President of Sales & Marketing
Chief People Officer
Senior Vice President of Projects
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Kolte-Patil Developers board of directors is about average.
Have Insiders Been Buying Kolte-Patil Developers Limited (NSE:KOLTEPATIL) Shares?
So before you buy or sell Kolte-Patil Developers Limited (NSE:KOLTEPATIL), you may well want to know whether insiders have been buying or selling. … Kolte-Patil Developers Insider Transactions Over The Last Year. … In total, Kolte-Patil Developers insiders bought more than they sold over the last year
Should You Be Impressed By Kolte-Patil Developers Limited's (NSE:KOLTEPATIL) ROE?
Kolte-Patil Developers has a ROE of 14%, based on the last twelve months. … That means that for every ₹1 worth of shareholders' equity, it generated ₹0.14 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
What Kind Of Shareholder Appears On The Kolte-Patil Developers Limited's (NSE:KOLTEPATIL) Shareholder Register?
The big shareholder groups in Kolte-Patil Developers Limited (NSE:KOLTEPATIL) have power over the company. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Kolte-Patil Developers is a smaller company with a market capitalization of ₹20b, so it may still be flying under the radar of many institutional investors.
Does Kolte-Patil Developers Limited's (NSE:KOLTEPATIL) 14% Earnings Growth Make It An Outperformer?
Investors with a long-term horizong may find it valuable to assess Kolte-Patil Developers Limited's (NSE:KOLTEPATIL) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. … View our latest analysis for Kolte-Patil Developers? … KOLTEPATIL's trailing twelve-month earnings (from 30 September 2018) of ₹1.2b has.
Is Kolte-Patil Developers Limited's (NSE:KOLTEPATIL) P/E Ratio Really That Good?
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Based on the last twelve months, Kolte-Patil Developers's P/E ratio is 15.64. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
How Kolte-Patil Developers Limited (NSE:KOLTEPATIL) Can Impact Your Portfolio Volatility
If you're interested in Kolte-Patil Developers Limited (NSE:KOLTEPATIL), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.
A Closer Look At Kolte-Patil Developers Limited's (NSE:KOLTEPATIL) Impressive ROE
Kolte-Patil Developers has a ROE of 20%, based on the last twelve months. … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.20 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Is Kolte-Patil Developers Limited's (NSE:KOLTEPATIL) Balance Sheet A Threat To Its Future?
However, an important fact which most ignore is: how financially healthy is the business? … Assessing first and foremost the financial health is. … Here are few basic financial health checks you should consider before taking the plunge.
Is Now An Opportune Moment To Examine Kolte-Patil Developers Limited (NSE:KOLTEPATIL)?
Kolte-Patil Developers Limited (NSE:KOLTEPATIL), which is in the real estate business, and is based in India,. … As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value? … Let’s take a look at Kolte-Patil Developers’s outlook and value based on the most recent financial data to see if the opportunity still exists
What Does Kolte-Patil Developers Limited's (NSE:KOLTEPATIL) Ownership Structure Look Like?
Every investor in Kolte-Patil Developers Limited (NSE:KOLTEPATIL) should be aware of the most powerful shareholder groups. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Kolte-Patil Developers is a smaller company with a market capitalization of ₹17.5b, so it may still be flying under the radar of many institutional investors.
Kolte-Patil Developers Limited operates as a real estate company in India. The company constructs residential projects, commercial projects, IT parks, and integrated townships; rents immovable properties; and provides project management services for managing and developing real estate projects. It also operates a chain of retail outlets; and offers facility and horticulture services. Kolte-Patil Developers Limited was founded in 1991 and is headquartered in Pune, India.
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