Discounted Cash Flow Calculation for NSEI:ONMOBILE 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:ONMOBILE 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
OnMobile Global's earnings available for a low price, and how does
this compare to other companies in the same industry?
OnMobile Global's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if OnMobile Global 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.
OnMobile Global'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
3/6, 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. Francois-Charles Sirois serves as the President and Chief Executive Officer of Telesystem Ltd., and OnMobile Systems Inc. Mr. Sirois has been Chief Executive Officer of OnMobile Global Limited since March 1, 2017. He has been the President of Trioomph Inc., since November 2004. He serves as the Chief Executive Officer of ZONE3 Inc. He serves as an Advisor at Tandem. He served as the Vice President of Corporate Development at Telesystem Ltd., since January 2006. He joined Telesystem with a mandate to redefine its long term strategy. His entrepreneurship expertise and talent for developing successful joint ventures with innovative partners have enabled Telesystem to leverage the momentum in the media and technology industry. Prior to joining Telesystem, Mr. Sirois managed venture and real estate investments. He served as the President and Chief Operating Officer at Microcell i5 Inc. from 2000 to 2002 and Masq Inc, having founded both the companies. Mr. Sirois served as the President and Founder of Up2 technologies inc. from 1998 to 2000. He established his competence in web hosting, e-commerce, mobile applications and mobile payment. He launched his career in 1997 in the internet industry. He served as the Chairman of Stingray Digital Group Inc. until November 9, 2017 and has been its Independent Non-Executive Director since April 26, 2007. He serves as an Executive Chairman at OnMobile Global Limited from November 1, 2014 and has been its Executive Director since June 26, 2014. He serves as a Director of Telesystem Ltd., and Trioomph Inc. He has been a Director of iPerceptions Inc. since November 13, 2008. He serves as a Director of Sainte-Justine UHC Foundation and Alpine Canada Alpin. He serves as a Director of ZONE3 Inc., WoozWorld, Plexo Inc., The TRIOOMPH Foundation and Sainte-Justine UHC Fondation. He is the Founder of the TRIOOMPH Foundation. He has more than 15 years of experience in corporate mergers, acquisitions and financings. Mr. Sirois holds a B.B.A. in Finance and Marketing from HEC Montréal.
Francois-Charles's compensation has been consistent with company performance over the past year.
Francois-Charles's remuneration is higher 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 OnMobile Global management team is about average.
Executive Chairman & CEO
President and COO of India
Compliance Officer & Company Secretary
Director of Sales
Vice President of Africa & Middle East
Director of Account Management
Director of Delivery & Operations - Europe
Director of Delivery & Presales - Western Market
Director of Account Management
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the OnMobile Global board of directors is about average.
OnMobile Global Limited (NSE:ONMOBILE): Can It Deliver A Superior ROE To The Industry?
OnMobile Global Limited’s (NSE:ONMOBILE) most recent return on equity was a substandard 1.97% relative to its industry performance of 11.52% over the past year. … Though ONMOBILE's recent performance is underwhelming, it is useful to understand what ROE is made up of and how it should be interpreted. … Knowing these components can change your views on ONMOBILE's below-average returns.
Does OnMobile Global Limited's (NSE:ONMOBILE) PE Ratio Signal A Selling Opportunity?
and want to begin learning the link between OnMobile Global Limited (NSE:ONMOBILE)’s fundamentals and stock market performance. … OnMobile Global Limited (NSE:ONMOBILE) trades with a trailing P/E of 38.1x, which is higher than the industry average of 21.7x. … While this makes ONMOBILE appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio
OnMobile Global Limited provides telecom value added services in India and internationally. It offers apps and services under the ONMO brand name; and carrier services, such as ring back tones, games, news and sports, videos, quiz, and music. The company was formerly known as OnMobile Asia Pacific Private limited and changed its name to OnMobile Global Limited in August 2007. OnMobile Global Limited was founded in 2000 and is headquartered in Bengaluru, India.
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