Megasoft Limited, together with its subsidiaries, provides information technology services focusing on telecommunication domain primarily in the United States, Canada, South America, Latin America, the Middle East, Africa, and the Asia-Pacific.
The last earnings update was 71 days ago.
Discounted Cash Flow Calculation for BSE:532408 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:532408 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.
Megasoft's share price is below the future cash flow value, and at a moderate discount (> 20%).
Megasoft'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
Megasoft's earnings available for a low price, and how does
this compare to other companies in the same industry?
Megasoft's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Megasoft 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.
Megasoft'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
2/6, 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.
Mr. Gandaravakottai Venkataraman Kumar, B.E, MBA, has been the Managing Director at Megasoft Ltd. since April 1, 2006 and serves as its Chief Executive Officer. Mr. Kumar has been Executive Director of Megasoft Ltd., since September 1, 2004. He served as Compliance Officer at Megasoft Ltd. since November 17, 2015. Mr. Kumar has over fourteen years of experience in IT & Telecom industries. He was the Founder of XIUS India Limited and served as its Chief Executive Officer. He held various senior management positions at Godrej Group of India as Chief Executive Officer at Godrej Telecom Ltd. At Godrej, he played key role in setting up of new companies and joint ventures, launching new business & product lines and forging International Alliances. He is credited with the turning around of many business divisions of Godrej, including Godrej Telecom. He also been a part time Marketing Faculty for second Year MBA students of Bombay University for 5 years. Mr. Kumar is an Electrical Engineer with Post Graduate degree in Management.
Gandaravakottai's compensation has been consistent with company performance over the past year.
Gandaravakottai's remuneration is higher than average for companies of similar size in India.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Megasoft management team is over 5 years, this suggests they are a seasoned and experienced team.
CEO, MD & Executive Director
Chief Financial Officer
Director of Facilities & Operations
Chief Technology Officer
Company Secretary & Compliance Officer
Head of Marketing
Director of Business Development
Vice President and Delivery Head
Head of Quality
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Megasoft board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Megasoft Limited, together with its subsidiaries, provides information technology services focusing on telecommunication domain primarily in the United States, Canada, South America, Latin America, the Middle East, Africa, and the Asia-Pacific. The company engages in the computer programming, consultancy, and related activities. It offers mobile infrastructure solutions, including XIUS mobile services platform (MSP), which provides end-to-end infrastructure for 3G/4G mobile operators, MVNE/mobile virtual network operators, converged broadband 4G/LTE service providers, mobile operator wholesale departments, and machine-to-machine/Internet of Things (IoT) service providers; XIUS MSP that offers a suite of infrastructure options, which enable real-time rating and billing; and Megasoft that enables service providers to navigate mobile ecosystems. The company also provides mobile payment technologies and services, including platforms and applications, e-wallets, and mobile and digital currencies. In addition, it offers cloud management, data center installation and management, predictive analytics, and managed and information management services, as well as cloud, cyber security, IoT, and mobile enablement services of various other service-related enterprises. Megasoft Limited was founded in 1994 and is based in Hyderabad, India.
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