CESC Limited, an integrated electrical utility company, engages in the generation, transmission, and distribution of electricity to approximately 2.9 million domestic, industrial, and commercial users in the area of 567 square kilometers (km) of Kolkata and Howrah, West Bengal in India.
The last earnings update was 112 days ago.
Discounted Cash Flow Calculation for NSEI:CESC 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:CESC 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.
CESC's share price is below the future cash flow value, and at a moderate discount (> 20%).
CESC'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
CESC's earnings available for a low price, and how does
this compare to other companies in the same industry?
CESC's earnings are expected to grow by 14.2% yearly, however this is not considered high growth (20% yearly).
CESC's revenue is expected to grow by 5.3% 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.
CESC'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
4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
saw a double-digit share price rise of over 10% in the past couple of months on the NSEI. … With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Today I will analyse the most recent data on CESC’s outlook and valuation to see if the opportunity still exists
Does The CESC Limited (NSE:CESC) Share Price Fall With The Market?
If you're interested in CESC Limited (NSE:CESC), 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. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
What Makes CESC Limited (NSE:CESC) A Great Dividend Stock?
Over the past 10 years CESC Limited (NSE:CESC) has been paying dividends to shareholders. … The stock currently pays out a dividend yield of 2.7%, and has a market cap of ₹88b. … Let's take a look at CESC in more detail.
4 Days Left Until CESC Limited (NSE:CESC) Trades Ex-Dividend
Investors who want to cash in on CESC Limited's (NSE:CESC) upcoming dividend of ₹17.50 per share have only 4 days left to buy the shares before its ex-dividend date, 14 February 2019, in time for dividends payable on the 07 March 2019. … Below, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. … consistent, reliable and competitive dividend over a long period of time, and is expected to continue to pay in the same manner many years to come.
CESC Limited (NSE:CESC): Commentary On Fundamentals
Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on CESC Limited (NSE:CESC) due to its excellent fundamentals in more than one area. … CESC
Is CESC Limited's (NSE:CESC) P/E Ratio Really That Good?
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll look at CESC Limited's (NSE:CESC) P/E ratio and reflect on what it tells us about the company's share price. … How Do I Calculate CESC's Price To Earnings Ratio
With A Return On Equity Of 10%, Has CESC Limited's (NSE:CESC) Management Done Well?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.10 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Have Investors Priced In CESC Limited's (NSE:CESC) Growth?
CESC Limited (NSE:CESC) is considered a high-growth stock, but its last closing price of ₹686.25 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … Analysts are predicting good growth prospects for CESC over the next couple of years
CESC Limited, an integrated electrical utility company, engages in the generation, transmission, and distribution of electricity to approximately 2.9 million domestic, industrial, and commercial users in the area of 567 square kilometers (km) of Kolkata and Howrah, West Bengal in India. It owns and operates three thermal power plants, including Budge Budge, Southern, and Titagarh generating stations generating 1125 megawatts (MW) of power; two thermal power plants with a capacity of power in Chandrapur, Maharashtra, and Haldia, West Bengal; and transmission and distribution systems that comprise 474 km circuit of transmission lines linking the company’s generating and receiving stations with 105 distribution stations, as well as 8,211 km circuit of HT lines, and 12,269 km circuit of LT lines. The company also owns and operates four wind power projects with a capacity of 24 MW at Dangri in Rajasthan; 26 MW at Surendranagar, Gujarat; 36 MW at Nipaniya, Madhya Pradesh; and 70 MW at Rojmal, Gujarat, as well as a solar plant with generating capacity of approximately 18 MW of power in Ramnathapuram, Tamil Nadu. In addition, it engages in the business of organized music retailing stores; selling of music accessories; business process outsourcing; and property development activities. The company was formerly known as The Calcutta Electric Supply Corporation (India) Limited and changed its name to CESC Limited in January 1987. CESC Limited was founded in 1897 and is headquartered in Kolkata, India.
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