Discounted Cash Flow Calculation for BSE:537985 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:537985 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.
Infronics Systems's share price is below the future cash flow value, and at a moderate discount (> 20%).
Infronics Systems's share price is below the future cash flow value, but not 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
Infronics Systems'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 Infronics Systems 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 Infronics Systems's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Infronics Systems's earnings growth to the India market average as no estimate data is available.
Unable to compare Infronics Systems's revenue growth to the India market average as no estimate data is available.
Unable to determine if Infronics Systems is high growth as no earnings estimate data is available.
Unable to determine if Infronics Systems 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.
Infronics Systems'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
Infronics Systems's finances.
The net worth of a company is the difference between its assets and liabilities.
Infronics Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Infronics Systems has no long term commitments.
This treemap shows a more detailed breakdown of
Infronics Systems'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.
Infronics Systems has no debt, it does not need to be covered by short term assets.
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.
Infronics Systems Limited, an IT solutions company, provides industry-specific software and hardware solutions in India. It offers security and surveillance solutions, including time and attendance based access control systems; secure border management systems for the immigration authorities; video security and other specialty CCTV cameras; and screening products, such as baggage scanners, cargo scanners, radiation monitors, body scanners, mobile trace detectors, etc. The company also provides system integration solutions, which include security consulting solutions, such as gate security, CCTV cameras with related software, and perimeter solutions; eZSMS, a business messaging system; and networking and support services. In addition, it offers real-time locating system, a local positioning system that allows tracking and identifying the location of objects in real time; Smart Certificate, a certificate embedded with a tamper-proof chip that contains the information about the recipient’s details, the organizations details, and the digitally encrypted signature of the certificate issuing authority; RFID based parking lot control management, vehicle ID tracking, asset tracking, stores management, visitor management, and personal identification and access control systems; and Fieldman handheld terminals for automating and standardizing the method of field data capture. Further, the company provides e-gov solutions in the areas of agriculture and public welfare. It serves customers in various industries, such as software houses, banks, manufacturing facilities, defense establishments, textile industry, educational institutions, oil refineries, and system integrators. Infronics Systems Limited also exports its products to the Kingdom of Saudi Arabia, Dubai, the United Kingdom, Ireland, and the United States. The company was formerly known as SuchInfotech Limited. Infronics Systems Limited was incorporated in 2000 and is based in Hyderabad, India.
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