Discounted Cash Flow Calculation for BSE:500463 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.
BSE:500463 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
AGC Networks's earnings available for a low price, and how does
this compare to other companies in the same industry?
AGC Networks's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Unable to determine if AGC Networks 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.
AGC Networks'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
5/6, 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. Sanjeev Verma has been an Whole Time Director of AGC Networks Limited since April 5, 2016 and its Chief Executive Officer since February 15, 2016. Mr. Verma has been President of Black Box Corporation since January 7, 2019 and serves as its Chief Executive Officer. Mr. Verma served as the President of International Operations and Chief Executive Officer of Americas at AGC Networks, Inc., until since April 5, 2016. He served as the President of AGC Networks Limited and also served as its President of International Operations and Chief Executive Officer of USA Business. He has been instrumental in overseeing growth of the business portfolios of Sales, Business development and the P&L, globally at AGC. A passionate leader with expertise in global projects, he has led key assignments in the areas of telecom, enterprise network solutions, IT services and IT outsourcing, not just in India but across the Asia Pacific region and the United States. Mr. Verma is a technology veteran with over 20 years of rich experience in the global ICT domain is a visionary with a deep understanding of various geographies. In his current role at AGC Networks, he has been a significant asset to its roadmap in India and its expansion onto foreign shores. He served as President of Global Sales & Business Operations - AGC Networks Limited an affiliate of Aegis Limited. Mr. Verma served as an Executive Vice President of Global Sales and Business Operations at Aegis Tech Limited. He was with Wipro Networks since 2006. He held key roles with 3D Networks and GTL in the U.S. and India. He has over 20 years of experience in the areas of business operations, business development and sales and marketing. He globally oversaw various key assignments in the areas of telecom, enterprise network solutions and IT services and IT outsourcing in India, the Asia Pacific region and the US. He served as a Whole Time Director of AGC Networks Limited since August 4, 2015 until April 5, 2016 and its Executive Director since May 15, 2014 until August 4, 2015. Mr. Verma holds a post-graduate degree in management.
Insufficient data for Sanjeev to compare compensation growth.
Sanjeev's remuneration is lower 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 AGC Networks management team is less than 2 years, this suggests a new team.
CEO & Whole Time Director
Chief Financial Officer
Chief Information Officer
Company Secretary & Compliance officer
Head of Marketing & VP
VP and Sales Head of India & SAARC
Chief People Officer & Additional Director
Head of Service Delivery & VP
Head of Customer Support & Services and VP
Regional Vice President of West
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the AGC Networks board of directors is less than 3 years, this suggests a new board.
AGC Networks Limited operates as an information, communications, and technology solutions provider and integrator worldwide. The company offers unified communication solutions, such as IP communication multimedia integration, and collaboration solutions. It also provides network infrastructure and data center solutions comprising switching and routing, and wireless and mobility solutions, as well as computing, storage, and virtualization solutions in the data center and virtualization space. In addition, the company offers a portfolio of cyber security services, which include certification, compliance, implementation, management, and audit services. Further, it provides digital transformation and applications, such as customer engagement and loyalty, customer journey, agent assisted service, branch queue management, voice biometrics, social media analytics, unified desktop, and IoT based big data analytics solutions, as well as self-service platform. Additionally, the company offers services, such as on-site support; remote maintenance of infrastructure and application support; managed services that include enterprise service management, integrated management data center services, and cloud computing services; and professional services comprising consulting and analysis, deployment services, customization and integration, and audit and review services. It serves banking, financial service, and insurance; education; healthcare; travel and hospitality; IT/ITES; and manufacturing industries. The company was founded in 1986 and is based in Mumbai, India. AGC Networks Limited is a subsidiary of Essar Telecom Limited.
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