Discounted Cash Flow Calculation for BSE:538922 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:538922 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
COSYN'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 COSYN 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 COSYN's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare COSYN's earnings growth to the India market average as no estimate data is available.
Unable to compare COSYN's revenue growth to the India market average as no estimate data is available.
Unable to determine if COSYN is high growth as no earnings estimate data is available.
Unable to determine if COSYN 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.
COSYN'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.
TENURE AS CEO
Mr. Ravi Vishnu has been the Managing Director of COSYN Limited (formerly, CSS Technergy) Limited since January 4, 2005 and as its Chairman of the Board. Mr. Vishnu focuses in Finance, HR and Marketing at CSEL. He has rich experience in handling large eGovernance projects, IT implementation projects in Power Utilities and customized BPO services. He served as Chairman Emeritus of C S Software Enterprise Ltd. He has been a Director of CSS Technergy Limited since April 25,1994. He holds an M.E. in Computer Science from PSG College of Technology.
Ravi's compensation has increased by more than 20% in the past year.
Ravi's remuneration is higher than average for companies of similar size in India.
Chairman & MD
Chief Financial Officer
Director of Operations & Whole-Time Director
Company Secretary & Compliance officer
Vellanki Kiran Babu
Head of Division
Putsala Naga Satyanarayana
Head of Division
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the COSYN board of directors is about average.
COSYN Limited provides information technology (IT) and IT enabled services worldwide. The company offers business differentiation solutions to clients in utilities, e-governance, information governance, and document management domains. It provides data and information governance services, such as document design and digitization, confidential data processing, scanning and imaging, data capture, ICR/OCR/OMR, document archival, data de-duplication, and manpower augmentation. The company also offers utilities-ITES services, including domain consultancy, GIS applications, consumer indexing, database migration, and facility management, as well as meter to cash services. In addition, it provides e-governance services in the areas of project and manpower consultancy, application development, database migration, data capture, remote services delivery, biometric capture, citizen portals, data mining, and deployment of smart cards. The company was formerly known as CSS Technergy Limited and changed its name to COSYN Limited in August 2015. COSYN Limited was founded in 1986 and is headquartered in Hyderabad, India.
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