Discounted Cash Flow Calculation for NSEI:MINDTECK 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:MINDTECK 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
Mindteck (India)'s earnings available for a low price, and how does
this compare to other companies in the same industry?
Mindteck (India)'s earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Mindteck (India) 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.
Mindteck (India)'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
Mindteck (India)'s finances.
The net worth of a company is the difference between its assets and liabilities.
Mindteck (India) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Mindteck (India)'s cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Mindteck (India)'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.
Low level of unsold assets.
Mindteck (India) 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.
Are Dividend Investors Getting More Than They Bargained For With Mindteck (India) Limited's (NSE:MINDTECK) Dividend?
Today we'll take a closer look at Mindteck (India) Limited (NSE:MINDTECK) from a dividend investor's perspective. … Investors might not know much about Mindteck (India)'s dividend prospects, even though it has been paying dividends for the last five years and offers a 2.3% yield. … Mindteck (India) has been paying a dividend for the past five years.
If You Had Bought Mindteck (India) (NSE:MINDTECK) Stock A Year Ago, You'd Be Sitting On A 43% Loss, Today
For example, the Mindteck (India) Limited (NSE:MINDTECK) share price is down 43% in the last year. … Because Mindteck (India) hasn't been listed for many years, the market is still learning about how the business performs. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Need To Know: Mindteck (India) Limited (NSE:MINDTECK) Insiders Have Been Selling Shares
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So we'll take a look at whether insiders have been buying or selling shares in Mindteck (India) Limited (NSE:MINDTECK). … Mindteck (India) Insider Transactions Over The Last Year
How Does Investing In Mindteck (India) Limited (NSE:MINDTECK) Impact The Volatility Of Your Portfolio?
If you're interested in Mindteck (India) Limited (NSE:MINDTECK), 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 is a widely used metric to measure a stock's exposure to 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.
Who Has Been Selling Mindteck (India) Limited (NSE:MINDTECK) Shares?
So we'll take a look at whether insiders have been buying or selling shares in Mindteck (India) Limited (NSE:MINDTECK). … However, rules govern insider transactions, and certain disclosures are required. … The Last 12 Months Of Insider Transactions At Mindteck (India)
What Investors Should Know About Mindteck (India) Limited's (NSE:MINDTECK) Financial Strength
The direct benefit for Mindteck (India) Limited (NSE:MINDTECK), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … However, the trade-off is MINDTECK will have to adhere to stricter debt covenants and have less financial flexibility. … Is MINDTECK right in choosing financial flexibility over lower cost of capital
Mindteck (India) Limited provides product engineering and information technology (IT) services worldwide. It offers smart grid communication services, OEM/system solutions, data center and in-premises energy management services, and IT application solutions; embedded design, embedded verification and validation, and system services; product lifecycle management consulting, advisory, system implementation and administration, and system services; validation/testing, program management, and system integration/data migration services; and SAP solutions. The company also provides mobile strategy consulting, user experience, design and development, and mobility testing services; hybrid cloud appliance, interoperable cloud storage, and business data analytics services; business intelligence, data/information management, and big data services, as well as advanced analytics and analytics on unstructured data; and IT security services. In addition, it offers system and integration, specialized, software product, and cloud based testing services, as well as test strategy, automation, and infrastructure services; product engineering, re-engineering, and sustenance services; and data center transformation and IT infrastructure management services. Additionally, the company provides custom application development, application maintenance and management, legacy modernization, and performance engineering and enhancement services; application and enterprise systems integration, business process management, packaged application, SAP, and service oriented architecture services; and IT talent and smart city solutions. It serves the Fortune 1000 companies, start-ups, universities, and various government entities. The company was formerly known as Hinditron Informatics Limited and changed its name to Mindteck (India) Limited in September 1999. The company was founded in 1991 and is headquartered in Bengaluru, India. Mindteck (India) Limited is a subsidiary of Embtech Holdings Limited.
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