Discounted Cash Flow Calculation for NSEI:GTL 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:GTL 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.
GTL's share price is below the future cash flow value, and at a moderate discount (> 20%).
GTL'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
GTL'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 GTL 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 GTL's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare GTL's earnings growth to the India market average as no estimate data is available.
Unable to compare GTL's revenue growth to the India market average as no estimate data is available.
Unable to determine if GTL is high growth as no earnings estimate data is available.
Unable to determine if GTL 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.
GTL'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.
The big shareholder groups in GTL Limited (NSE:GTL) have power over the company. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
How Does GTL Limited (NSE:GTL) Affect Your Portfolio Volatility?
If you're interested in GTL Limited (NSE:GTL), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.
What Percentage Of GTL Limited (NSE:GTL) Shares Do Insiders Own?
Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'. … Let's take a closer look to see what the different types of shareholder can tell us about GTL
Who Are The Largest Shareholders In GTL Limited (NSE:GTL)?
Today, I will be analyzing GTL Limited’s (NSE:GTL) recent ownership structure, an important but not-so-popular subject among individual investors. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment.
In this exercise, I will use profits as a proxy for Tirodkar's performance. … Typically I would look at market cap and earnings as a proxy for performance, however, GTL's negative earnings lower the usefulness of my formula. … If you have not done so already, I highly recommend you to complete your research by taking a look at the following: Governance: To find out more about GTL's governance, look through our infographic report of the company's board and management.
Should You Be Concerned About GTL Limited's (NSE:GTL) Shareholders?
This size of ownership gives retail investors collective power in deciding on major policy decisions such as executive compensation, appointment of directors and acquisitions of businesses. … An ownership of this size indicates a strong financial backing and has the potential to influence GTL's business strategy. … Thus, investors should dig deeper into GTL's business relations with these companies and how it can affect shareholder returns in the long-term.Next Steps: The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.
Where GTL Limited (NSE:GTL) Stands In Earnings Growth Against Its Industry
Below, I will assess GTL's recent performance announced on 31 March 2017 and compare these figures to its historical trend and industry movements. … Check out our latest analysis for GTL Did GTL beat its long-term earnings growth trend and its industry? … I look at the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data.
GTL Limited operates as a network services company in the Asia Pacific, Europe, and the Middle East. The company offers services and solutions to address the network life cycle requirements of telecom operators, technology providers, and tower companies. It provides network planning and design services, such as radio frequency and transmission engineering, as well as fixed and core network engineering for GSM, CDMA, microwave transmission, SDH, DWDM, WiMAX, and broadband networks; and benchmarking and optimization solutions. The company also offers network deployment services; operations and maintenance services; managed network services, including network planning and design, system engineering, installation and commissioning, system integration, optimization, network operations, and field maintenance; and energy management solutions. In addition, it provides site acquisition, consulting, and professional services. GTL Limited was incorporated in 1987 and is headquartered in Mumbai, India.
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