Discounted Cash Flow Calculation for BSE:532951 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:532951 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
GSS Infotech'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 GSS Infotech 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 IT industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare GSS Infotech's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare GSS Infotech's earnings growth to the India market average as no estimate data is available.
Unable to compare GSS Infotech's revenue growth to the India market average as no estimate data is available.
Unable to determine if GSS Infotech is high growth as no earnings estimate data is available.
Unable to determine if GSS Infotech 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.
GSS Infotech'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.
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. Marepally Bhargav Co-Founded GSS America Infotech Limited in 1999 and serves as its Managing Director and Chief Executive Officer. Mr. Bhargav vision is to make GSS America as the most preferred supplier of Technology Services. Mr. Bhargav has 13 years of experience in the IT Services Industry and has a track record of turning around businesses under his command. He served as the Chairman of GSS America Infotech Limited and serves as its Director. Mr. Bhargav has been selected for the pivotal award of Udyog Ratna”. He holds double Master's degrees from BITS Pilani.
Insufficient data for Bhargav to compare compensation growth.
Bhargav'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 tenure for the GSS Infotech management team is about average.
Mohammad Ul Haq Abdul Mannan
Company Secretary & Compliance Officer
Chief Financial Officer
Senior Vice Resident of Operations & Strategy
General Manager of Finance & Accounts - India
Chief Technology Officer
Senior Executive of Admin
Vice President of Inside Sales
Chief of Strategy
Senior Vice President
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the GSS Infotech board of directors is less than 3 years, this suggests a new board.
GSS Infotech Limited provides managed information technology (IT) services in India, Bangladesh, and the United States. It offers remote infrastructure management services, including remote server management and monitoring, service desk, storage management, platform hardening, system integration, cloud hosting, database administration, messaging and collaboration, managed desktop, application packaging and distribution, and server management and migration services; and workload automation services. The company also provides database management services, such as administration, monitoring, performance tuning, support, consulting, and migration and upgrades; Oracle Database services; SQL Database services; Oracle E-Business services; and MySQL Support Services comprise development, deployment, and management of MySQL applications. In addition, it offers consulting services, such as mainframe programming, business analysis, application development and engineering, virtualization, system analysis, network engineering and administration, Web development, help desk and technical support, project management, and technical writing services. Further, the company provides IT security services; application management services, including application development and transformation services; testing services that consists of test management, testing and QA, test automation, and other services. Additionally, it offers UniDesk, a cloud based managed service desk; enterprise identity and data management software; and IT service management tools. The company serves customers in the telecom, banking and financial services, insurance, healthcare, retail, and education sectors, as well as government organizations. The company was formerly known as GSS America Infotech Limited and changed its name to GSS Infotech Limited in March 2011. GSS Infotech Limited was founded in 1999 and is headquartered in Hyderabad, India.
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