Discounted Cash Flow Calculation for BSE:532379 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:532379 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.
Firstobject Technologies's share price is below the future cash flow value, and at a moderate discount (> 20%).
Firstobject Technologies's share price is below the future cash flow value, and 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
Firstobject Technologies's earnings available for a low price, and how does
this compare to other companies in the same industry?
Firstobject Technologies's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Firstobject Technologies 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.
Firstobject Technologies'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
0/6, 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
Firstobject Technologies's finances.
The net worth of a company is the difference between its assets and liabilities.
Firstobject Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Firstobject Technologies's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Firstobject Technologies'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 32.2x 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. Chavali Sriram Kumar, M.Tech, M.B.A, LL.B, (Ph.D) has been the Managing Director of Firstobject Technologies Ltd. since November 22, 2012. Mr. Kumar served as Vice President of Product Development of Nomis Solutions, Inc. He has over 13 years of global experience in the area of enterprise software development for Financial Services and Supply Chain Management. He served as Chief Technology Officer and Associate Director of Firstobject Technologies Ltd since February 2011. Mr. Kumar has also held senior development roles at Impetus Technologies and Novell's India Development Center in Bangalore, India. Mr. kumar has been a Director of Firstobject Technologies Ltd. since November 22, 2012. He also serves as a Director on the Board of India Literacy Project, a non-profit that funds literacy projects in India. As the second member of the engineering team at Nomis, his accomplishments include architecture and development of the first release of the Nomis Price Optimizer. Prior to Nomis, he was an Advanced Member of Technical Staff at i2 Technologies where he won several accolades for his technical contributions including Customer Satisfaction awards for Toshiba and Carnival Cruise implementations. His pioneering work in Java and Object databases was presented as an industry session at the 1999 JavaOne conference in San Francisco. He is a winner of the BITS Alumni Association's "Global 30 under 30 Award" for demonstrating excellence in community leadership. Mr. Kumar received his MS degree in information systems from Birla Institute of Technology and Science and an MBA from the Haas School of Business at UC Berkeley.
Chavali's compensation has been consistent with company performance over the past year.
Chavali's remuneration is about average for companies of similar size in India.
MD & Director
Assistant Vice President of Finance & Accounting Department
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Firstobject Technologies board of directors is about average.
Firstobject Technologies Limited operates as an IT/ITES and e-education software development company in India. It offers IT/ITES services, such as solution architecting, application development, product development, independent validation, documentation, data management, business intelligence, digital transformation, and program/project management services for banking and financial services, property and casualty insurance, and health care industries. The company also provides e-learning content for pre-school, various engineering and medical entrance examinations, management entrance examinations, bank jobs, and law entrance examinations. In addition, it offers knowledge process outsourcing services, including middle office and back office support services comprising data search programs, research report preparations, price monitoring and competitive analytics, financial contract risk management, and data reconciliation services to banks, educational institutions, and manufacturing and services companies; and business process outsourcing solutions. The company was incorporated in 2000 and is based in Mumbai, India.
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