Discounted Cash Flow Calculation for NSEI:SOFTTECH using Dividend Discount Model Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future dividends to their present value. This
approach is used for finance firms where free cash flow is difficult to estimate
(e.g. Banks/ Insurance firms).
If the firm does not pay the majority of its earnings out as a dividend this
method will often arrive at a value significantly lower than the share price.
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
SoftTech Engineers's earnings available for a low price, and how does
this compare to other companies in the same industry?
SoftTech Engineers's earnings are expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).
Unable to determine if SoftTech Engineers 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.
SoftTech Engineers'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
5/6, 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
SoftTech Engineers's finances.
The net worth of a company is the difference between its assets and liabilities.
SoftTech Engineers is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
SoftTech Engineers's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
SoftTech Engineers'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.
Debt is covered by short term assets, assets are 6.7x debt.
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.
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. Vijay Gupta is Founder of SoftTech Engineers Pvt. Ltd. and has been its Chairman, Managing Director and Chief Executive Officer since February 24, 2015. Mr. Gupta started his career as a Research Associate and worked with CAD/CAM divisions of Crompton Greaves Limited for 3.5 years and Godrej & Boyce Limited for 1.5 years. Mr. Gupta is a first generation entrepreneur and has an experience of over 25 years in development of complex BIM/CAD/CAE/Project Management enterprise software in Architecture-Engineering-Construction domain. He has 25 over years of experience in development of complex CAD/CAE/Project Management software up to customer satisfaction. He is the Architect of SoftTech's popular software packages STRUDS, QE-PRO, ESR-GSR, OPTICON and CM. He worked on several projects to successful conclusion during his career. He serves as a Director of Covisible Solutions (India) Private Limited and SoftTech Engineers INC, USA. He holds a Master’s degree in Technology in the stream of Civil Engineering from the Indian Institute of Technology, Mumbai (IIT, Bombay).
Insufficient data for Vijay to compare compensation growth.
Vijay's remuneration is lower than average for companies of similar size in India.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the SoftTech Engineers management team is less than 2 years, this suggests a new team.
Chief Financial Officer
Company Secretary & Compliance Officer
Vice President of Business Development
Senior Vice President - eLearning
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the SoftTech Engineers board of directors is less than 3 years, this suggests a new board.
Can SoftTech Engineers Limited (NSE:SOFTTECH) Maintain Its Strong Returns?
We'll use ROE to examine SoftTech Engineers Limited (NSE:SOFTTECH), by way of a worked example. … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.14 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
What Kind Of Investor Owns Most Of SoftTech Engineers Limited (NSE:SOFTTECH)?
The big shareholder groups in SoftTech Engineers Limited (NSE:SOFTTECH) have power over the company. … With a market capitalization of ₹498m, SoftTech Engineers is a small cap stock, so it might not be well known by many institutional investors. … We can zoom in on the different ownership groups, to learn more about SOFTTECH
Is SoftTech Engineers Limited (NSE:SOFTTECH) A Top Dividend Stock?
SoftTech Engineers Limited (NSE:SOFTTECH) has started paying a dividend to shareholders. … Does SoftTech Engineers tick all the boxes of a great dividend stock? … View our latest analysis for SoftTech Engineers
What Can We Make Of SoftTech Engineers Limited’s (NSE:SOFTTECH) High Return On Capital?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … How Do You Calculate Return On Capital Employed
Here's What SoftTech Engineers Limited's (NSE:SOFTTECH) P/E Ratio Is Telling Us
To keep it practical, we'll show how SoftTech Engineers Limited's (NSE:SOFTTECH) P/E ratio could help you assess the value on offer. … SoftTech Engineers has a P/E ratio of 4.17, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
How Much Of SoftTech Engineers Limited (NSE:SOFTTECH) Do Insiders Own?
The big shareholder groups in SoftTech Engineers Limited (NSE:SOFTTECH) have power over the company. … SoftTech Engineers is a smaller company with a market capitalization of ₹415m, so it may still be flying under the radar of many institutional investors. … institutional investors have bought into the company.
Is SoftTech Engineers Limited (NSE:SOFTTECH) A Smart Pick For Income Investors?
Does SoftTech Engineers tick all the boxes of a great dividend stock? … Check out our latest analysis for SoftTech Engineers … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Are SoftTech Engineers Limited's (NSE:SOFTTECH) Interest Costs Too High?
SoftTech Engineers Limited (NSE:SOFTTECH) is a small-cap stock with a market capitalization of ₹554.04m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is
What Investors Should Know About SoftTech Engineers Limited's (NSE:SOFTTECH) Financial Strength
How does SOFTTECH’s operating cash flow stack up against its debt? … Moreover, SOFTTECH has produced cash from operations of ₹94.32M in the last twelve months, resulting in an operating cash to total debt ratio of 54.48%, signalling that SOFTTECH’s debt is appropriately covered by operating cash. … For SOFTTECH, the ratio of 5.38x suggests that interest is appropriately covered, which means that lenders may be less hesitant to lend out more funding as SOFTTECH’s high interest coverage is seen as responsible and safe practice.Next Steps: SOFTTECH’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.
SoftTech Engineers Limited develops software solutions for the architecture, engineering, and construction sectors in India. The company offers AutoDCR, a software for automation of building permit approvals that is used by the government authorities in scrutinizing and automating the building permits based on the CAD based building plan, which works on an online system and environment; and Public Works Information Management System, a Web-based commercial-off-the-shelf application for managing the functional processes of works planning, procurement, and maintenance in public works organizations. It also provides OTICON, which is an enterprise resource planning software primarily for construction enterprises; and QE-PRO, a software for preparing cost estimates from building models, including civil engineering structures, preparation of tender documents, and bills. In addition, the company resells AutoDesk software products and design suites, such as AutoCAD Design Suite, Autodesk Building Design Suite, and Autodesk Infrastructure Design Suite, as well as undertakes training and implementation of software. The company was founded in 1996 and is headquartered in Pune, India.
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