Discounted Cash Flow Calculation for NSEI:IGL 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:IGL 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
Indraprastha Gas's earnings available for a low price, and how does
this compare to other companies in the same industry?
Indraprastha Gas's earnings are expected to grow by 11.2% yearly, however this is not considered high growth (20% yearly).
Indraprastha Gas's revenue is expected to grow by 13.4% 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.
Indraprastha Gas'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
1/6, 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
Indraprastha Gas's finances.
The net worth of a company is the difference between its assets and liabilities.
Indraprastha Gas is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Indraprastha Gas's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Indraprastha Gas'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.
High level of physical assets or inventory.
Indraprastha Gas 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.
All You Need To Know About Indraprastha Gas Limited's (NSE:IGL) Financial Health
Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Indraprastha Gas Limited (NSE:IGL), with a market cap of ₹217b, are often out of the spotlight. … This article will examine IGL’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.
Indraprastha Gas Limited (NSE:IGL) Is Employing Capital Very Effectively
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Is Indraprastha Gas Limited's (NSE:IGL) CEO Overpaid Relative To Its Peers?
This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … Ranganathan's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Indraprastha Gas Limited has a market cap of ₹212b, and is paying total annual CEO compensation of ₹6.8m?
Does Indraprastha Gas Limited's (NSE:IGL) Recent Track Record Look Strong?
Today I will assess IGL's recent performance announced on 31 March 2018 and compare these figures to its historical trend and industry movements. … Did IGL beat its long-term earnings growth trend and its industry. … IGL's trailing twelve-month earnings (from 31 March 2018) of ₹7.2b has.
If You Had Bought Indraprastha Gas Stock Five Years Ago, You Could Pocket A 473% Gain Today
For example, the Indraprastha Gas Limited (NSE:IGL) share price is up a whopping 473% in the last half decade, a handsome return for long term holders. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Over half a decade, Indraprastha Gas managed to grow its earnings per share at 15% a year.
Do Institutions Own Indraprastha Gas Limited (NSE:IGL) Shares?
If you want to know who really controls Indraprastha Gas Limited (NSE:IGL), then you'll have to look at the makeup of its share registry. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … We also tend to see lower insider ownership in companies that were previously publicly owned.
Is Indraprastha Gas Limited (NSE:IGL) Spending Too Much Money?
If you are currently a shareholder in Indraprastha Gas Limited (NSE:IGL), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … I will take you through Indraprastha Gas’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Indraprastha Gas generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating
Why Indraprastha Gas Limited (NSE:IGL) Could Have A Place In Your Portfolio
Participate in a short research study and receive a 6-month subscription to the award winning Simply Wall St research tool (valued at $60)! … Indraprastha Gas Limited (NSE:IGL) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective.
Can Indraprastha Gas Limited (NSE:IGL) Save Your Portfolio?
The risk of investing in the stock market is a systematic crash. … This is the best time to buy stocks like Indraprastha Gas Limited at a discount. … Indraprastha Gas Limited distributes natural gas in IndiaE
Indraprastha Gas Limited distributes natural gas in India. The company supplies compressed natural gas (CNG) to the transport sector; and piped natural gas to domestic, industrial, and commercial sectors in Delhi and the National Capital Region. It operates 446 CNG stations; and serves 8.92 lacs households, and 3,429 commercial and industrial consumers. The company’s pipeline network consists of approximately 11,673 kilometers. Indraprastha Gas Limited was incorporated in 1998 and is based in New Delhi, India.
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