Discounted Cash Flow Calculation for NSEI:PCJEWELLER 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:PCJEWELLER 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
PC Jeweller'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 PC Jeweller 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
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
Expected Specialty Retail industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare PC Jeweller's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare PC Jeweller's earnings growth to the India market average as no estimate data is available.
Unable to compare PC Jeweller's revenue growth to the India market average as no estimate data is available.
Unable to determine if PC Jeweller is high growth as no earnings estimate data is available.
Unable to determine if PC Jeweller 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.
PC Jeweller'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
4/6, 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. Balram Garg, B.Com. has been the Managing Director at PC Jeweller Limited since April 16,2005 and serves as its Chief Executive Officer. Mr. Garg has been an Executive Director of PC Jeweller Limited since July 01,2011. Mr. Garg holds a bachelors degree in commerce from the University of Delhi.
Balram's compensation has been consistent with company performance over the past year.
Balram'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 average tenure for the PC Jeweller management team is over 5 years, this suggests they are a seasoned and experienced team.
MD & Executive Director
Chief Financial Officer
COO & Executive Director
Company Secretary & Compliance Officer
President of Accounts & Taxation
President of Accounts & Audit
President of Manufacturing
President of Gold Manufacturing
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the PC Jeweller board of directors is about average.
A Look At PC Jeweller Limited's (NSE:PCJEWELLER) Exceptional Fundamentals
PC Jeweller Limited (NSE:PCJEWELLER) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … is a company with great financial health as well as a.
Introducing PC Jeweller (NSE:PCJEWELLER), The Stock That Tanked 77%
Indeed, the share price is down a whopping 77% in the last year. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Even though the PC Jeweller share price is down over the year, its EPS actually improved.
What Kind Of Shareholders Own PC Jeweller Limited (NSE:PCJEWELLER)?
Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … PC Jeweller is a smaller company with a market capitalization of ₹27b, so it may still be flying under the radar of many institutional investors. … institutions own shares in the company.
Do You Know What PC Jeweller Limited's (NSE:PCJEWELLER) P/E Ratio Means?
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … PC Jeweller has a price to earnings ratio of 5.45, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Is PC Jeweller Limited (NSE:PCJEWELLER) A Financially Sound Company?
While small-cap stocks, such as PC Jeweller Limited (NSE:PCJEWELLER) with its market cap of ₹30b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Specialty Retail businesses operating in the environment facing headwinds from current disruption,.
At ₹80.80, Is It Time To Put PC Jeweller Limited (NSE:PCJEWELLER) On Your Watch List?
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? … Is there still an opportunity here to buy. … Today I will analyse the most recent data on PC Jeweller’s outlook and valuation to see if the opportunity still exists
A Closer Look At PC Jeweller Limited's (NSE:PCJEWELLER) Impressive ROE
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.14 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
With 27% Earnings Growth, Did PC Jeweller Limited (NSE:PCJEWELLER) Outperform The Industry?
Did PCJEWELLER's recent earnings growth beat the long-term trend and the industry. … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 10%, indicating the rate at which PCJEWELLER is growing has accelerated … What's the driver of this growth?
Should You Consider PC Jeweller Limited (NSE:PCJEWELLER)?
I've been keeping an eye on PC Jeweller Limited (NSE:PCJEWELLER) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe PCJEWELLER has a lot to offer. … company with a
Do You Like PC Jeweller Limited (NSE:PCJEWELLER) At This P/E Ratio?
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at PC Jeweller Limited's (NSE:PCJEWELLER) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
PC Jeweller Limited manufactures, retails, and trades in gold jewelry, diamond studded jewelry, and silver items in India. The company sells its jewelry through its showrooms and Website, wearyourshine.com. As of March 31, 2018, it had 92 showrooms, including 82 company owned showrooms and 10 franchisee showrooms. The company also exports its products. PC Jeweller Limited was founded in 2005 and is based in Delhi, India.
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