Brightcom Group Limited provides digital marketing solutions and computer software development services to businesses, agencies, and online publishers worldwide.
The last earnings update was 145 days ago.
Discounted Cash Flow Calculation for NSEI:BCG 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.
NSEI:BCG 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.
Brightcom Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
Brightcom Group'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
Brightcom Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
Brightcom Group's earnings are expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Brightcom Group 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.
Brightcom Group'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
1/6, 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. Muthukuru Suresh Kumar Reddy co-founded Lycos Internet Limited (formerly Ybrant Digital Limited) in 1999 and has been its Chairman and Chief Executive Officer/Managing Director since June 26, 2012. Mr. Reddy serves as the Chairman, Chief Executive Officer and Director of Pennyweb, Inc. Mr. Reddy was a consultant to Charles Schwab, Pacific Bell, Chrysler and Caterpillar. Prior to co-founding two successful companies USAGreetings and Ybrant Technologies, Mr. Reddy worked in various roles across different industries in Fortune 500 companies, such as Caterpillar, Chrysler, SBC(PacBell) and Charles Schwab. He has an extensive cross-industry experience. He has been involved in the area of Strategic Management, online marketing content and delivery for over a decade. He has been an Executive Director of Lycos Internet Limited since November 30, 2006. Mr. Reddy holds M.S. in Engineering from the Iowa State University and B. Tech. from the Indian Institute of Technology, Kharagpur.
Insufficient data for Muthukuru to compare compensation growth.
Muthukuru'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 Brightcom Group management team is about average.
President & Chief Strategy Officer
Chief Financial Officer
Chief Technology Officer and General Manager of Fusion Division
Investor Relationship Officer
Compliance Officer & Company Secretary
Group CFO & Executive Director of Finance
Chief Executive Officer of Brightcom - LYCOS Advertising Division
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Brightcom Group board of directors is less than 3 years, this suggests a new board.
Should You Like Brightcom Group Limited’s (NSE:BCG) High Return On Capital Employed?
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Read This Before You Buy Brightcom Group Limited (NSE:BCG) Because Of Its P/E Ratio
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Brightcom Group has a price to earnings ratio of 0.37, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Imagine Owning Brightcom Group And Trying To Stomach The 87% Share Price Drop
While it may not be enough for some shareholders, we think it is good to see the Brightcom Group Limited (NSE:BCG) share price up 20% in a single quarter. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During the unfortunate three years of share price decline, Brightcom Group actually saw its earnings per share (EPS) improve by 5.9% per year.
Is Brightcom Group Limited’s (NSE:BCG) 21% ROCE Any Good?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Could The Brightcom Group Limited (NSE:BCG) Ownership Structure Tell Us Something Useful?
A look at the shareholders of Brightcom Group Limited (NSE:BCG) can tell us which group is most powerful. … Brightcom Group is not a large company by global standards. … See our latest analysis for Brightcom Group
Should Brightcom Group Limited's (NSE:BCG) Recent Earnings Decline Worry You?
Below, I will assess BCG's latest performance announced on 31 March 2018 and weigh these figures against its longer term trend and industry movements. … How Did BCG's Recent Performance Stack Up Against Its Past. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 34%, indicating the rate at which BCG is growing has slowed down
Brightcom Group Limited (NSE:BCG): Assessing Capital Returns
and looking to gauge the potential return on investment in Brightcom Group Limited (NSE:BCG). … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … To understand Brightcom Group’s capital returns we will look at a useful metric called return on capital employed.
Brightcom Group Limited provides digital marketing solutions and computer software development services to businesses, agencies, and online publishers worldwide. It operates through Digital Marketing and Software Development segments. It operates a network of community and social sites that include Gamesville.com, Tripod.com, Angelfire.com, and Lycos.com. The company was formerly known as Lycos Internet Limited and changed its name to Brightcom Group Limited in September 2018. Brightcom Group Limited was incorporated in 1999 and is based in Hyderabad, India.
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