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 14 days ago.
Discounted Cash Flow Calculation for NSEI:MJCO 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 use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
NSEI:MJCO DCF 1st Stage: Next 5 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.
Majesco's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Majesco's share price is below the future cash flow value, but not 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
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 13.6% 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
2/6, 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 tenure for the Majesco management team is about average.
Chief Financial Officer
MD & Director
CEO & Director
Chief Operating Officer
General Counsel & Company Secretary
Director of Global Marketing
Executive Vice President of Products
Executive Vice President and P&C Industry Leader
Executive VP and Head of P&C Delivery
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Majesco board of directors is about average.
Calculating The Fair Value Of Majesco Limited (NSE:MJCO)
by estimating the company's future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model
Is Majesco Limited's (NSE:MJCO) PE Ratio A Signal To Sell For Investors?
I am writing today to help inform people who are new to the stock market. … and want to learn about the link between company’s fundamentals and stock market performance. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio
I am going to take a deep dive into Majesco Limited’s (NSE:MJCO) most recent ownership structure, not a frequent subject of discussion among individual investors. … The impact of a company's ownership structure affects both its short- and long-term performance. … NSEI:MJCO Ownership Summary August 1st 18
Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor. … CEOs leading companies of similar size and profitability
Does Majesco Limited's (NSE:MJCO) PE Ratio Signal A Selling Opportunity?
and want to better understand how you can grow your money by investing in Majesco Limited (NSE:MJCO). … Majesco Limited (NSE:MJCO) trades with a trailing P/E of 180.4x, which is higher than the industry average of 20.7x. … While MJCO might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions
Was Majesco Limited's (NSE:MJCO) Earnings Decline Part Of A Broader Industry Downturn?
Today I will assess MJCO's recent performance announced on 31 March 2018 and weigh these figures against its long-term trend and industry movements. … Was MJCO's recent earnings decline indicative of a tough track record. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 50.19%, indicating the rate at which MJCO is growing has slowed down
Is It Time To Sell Majesco Limited (NSE:MJCO) Based Off Its PE Ratio?
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for MJCO Price per share = ₹487.1 Earnings per share = ₹4.069 ∴ Price-Earnings Ratio = ₹487.1 ÷ ₹4.069 = 119.7x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you inadvertently compared riskier firms with MJCO, then investors would naturally value MJCO at a higher price since it is a less risky investment. … Similarly, if you accidentally compared lower growth firms with MJCO, investors would also value MJCO at a higher price since it is a higher growth investment.
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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