Majesco Limited, together with its subsidiaries, provides insurance software and IT services in North America, Europe, the Middle East, the Asia Pacific, and internationally.
The last earnings update was 75 days ago.
Discounted Cash Flow Calculation for BSE:539289 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:539289 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
Majesco's earnings available for a low price, and how does
this compare to other companies in the same industry?
Majesco's earnings are expected to grow significantly at over 20% yearly.
Majesco's revenue is expected to grow by 13.5% yearly, however this is not considered high growth (20% yearly).
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.
Majesco'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
4/6, 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. Adam Elster serves as Chief Executive Officer and Director of Majesco since October 1, 2018. He has been Chief Executive Officer and Director at Majesco Limited since October 1, 2018. He was Executive Officer of CA, Inc. from May 3, 2018 to August 17, 2018. Mr. Elster was President of Global Field Operations at CA, Inc./CA Technologies since July 26, 2016 until May 3, 2018. He led high-performing teams in all aspects of sales, services, support and operations. He was responsible for revenue across all geographies, business units, channels, digital sales, renewals and services globally. He has a strong background in the technology industry. He served as an Executive Vice President at CA, Inc. since February 2012 until August 2016 and served as Group Executive of Worldwide Sales & Services since January 21, 2014 until August 2016. Mr. Elster served as an Executive Vice President and Group Executive of Mainframe & Customer Success Group at CA, Inc. from February 2012 to January 21, 2014. He was responsible for innovation and growth of CA, Inc. mainframe business and customer success, which includes customer support, portfolio management and integration of acquisitions. In addition, he also leads a business transformation program that focuses on organizational alignment initiatives with CA, Inc. business strategy to meet long-term goals and objectives. Since joining the CA, Inc. in 1999, Mr. Elster held a number of senior management positions, including Executive Vice President of Global Business Organization & Business Transformation from August 2011 to February 2012, General Manager of CA Services, Support & Education from June 2011 to August 2011, Corporate Senior Vice President and General Manager of CA Services from November 2009 to June 2011 and Senior Vice President of Area Sales Manager for the Eastern United States from July 2007 to November 2009. He received a Bachelor of Arts in psychology and his Master of Sciences in management and information systems from New York University.
Insufficient data for Adam to compare compensation growth.
Insufficient data for Adam to establish whether their remuneration is reasonable compared to companies of similar size in India.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Majesco management team is less than 2 years, this suggests a new team.
MD & Group CFO
CEO & Director
President & Chief Product Officer
Chief Financial Officer
Chief Operating Officer
Head of Investor Relations
Director of Global Marketing
Executive Vice President of Global Sales
Executive Vice President and Head of Delivery
Senior Vice President of Strategic Marketing
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Majesco board of directors is less than 3 years, this suggests a new board.
Majesco Limited, together with its subsidiaries, provides insurance software and IT services in North America, Europe, the Middle East, the Asia Pacific, and internationally. The company offers IT consulting, application development, systems integration, application management outsourcing, testing, data warehousing and business intelligence, CRM, and legacy modernization services. It also provides policy management, billing, claim management, distribution management, data and analytics, enterprise data warehouse, and data extension platform solutions; Majesco Digital1st Insurance, a micro-services based platform solution; and Majesco CloudInsurer, a business platform solution. The company serves insurance carriers in various lines of business, including property and casualty, life, annuity, health, pension, and group and worksite benefits insurance providers. The company was formerly known as Minefields Computers Limited and changed its name to Majesco Limited in June 2015. Majesco Limited was incorporated in 2013 and is based in Navi Mumbai, India.
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