Discounted Cash Flow Calculation for NSEI:SJVN 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:SJVN 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.
SJVN's share price is below the future cash flow value, but not at a moderate discount (< 20%).
SJVN'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
SJVN's earnings available for a low price, and how does
this compare to other companies in the same industry?
SJVN's earnings are expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).
SJVN's revenue is expected to grow by 2.1% 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.
SJVN'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. Nand Lal Sharma has been Chairman and Managing Director of SJVN Limited since December 01, 2017. Mr. Sharma served as the Director of Personnel at SJVN Limited from March 22, 2011 to November 30, 2017 and served as its an Executive Director of Human Resources since joining in July 28, 2008. Mr. Sharma is an officer of HP State Administrative Services. Prior to SJVN Limited, he served as special secretary (General Administration Department and Health) and Director Ayurveda with GoHP. He has been a Director of SJVN Limited since March 22, 2011. Mr. Sharma holds a Masters Degree in Business Administration from the University of Ljublijana, Slovenia. He serves as director of SJVN Thermal Private Limited and SJVN Arun-III Power Development Company Private Limited and Holds an M.Sc in Agricultural Economics.
Nand's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Nand's remuneration is lower 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 SJVN management team is about average.
Chairman & MD
CFO, Director of Finance & Whole Time Director
Compliance Officer & Company Secretary
Director of Electrical & Whole Time Director
Director of Civil & Whole Time Director
General Manager of Personnel and Administration
General Manager of Information Technology & Communications and General Manager of Electrical Design
Chief Vigilance Officer
Chief General Manager of Commercial & System Operation and Qai & C
Executive Director of Civil Design-II
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the SJVN board of directors is about average.
Looking At SJVN Limited (NSE:SJVN) From All Angles
I've been keeping an eye on SJVN Limited (NSE:SJVN) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe SJVN has a lot to offer. … For those interested in understanding where the figures come from and want to see the analysis,
What Investors Should Know About SJVN Limited's (NSE:SJVN) Financial Strength
While small-cap stocks, such as SJVN Limited (NSE:SJVN) with its market cap of ₹101b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … since poor capital management may bring about bankruptcies,
Why You Should Care About SJVN Limited’s (NSE:SJVN) Low Return On Capital
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its 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.
What To Know Before Buying SJVN Limited (NSE:SJVN) For Its Dividend
A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Historically, SJVN Limited (NSE:SJVN) has paid dividends to shareholders, and these days it yields 8.2%. … Let's dig deeper into whether SJVN should have a place in your portfolio.
How Good Is SJVN Limited (NSE:SJVN), When It Comes To ROE?
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. … Our data shows SJVN has a return on equity of 11% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
SJVN Limited (NSE:SJVN) Has Attractive Fundamentals
As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … is a company that has been able to sustain great financial health, trading at an attractive share price.
Do You Like SJVN Limited (NSE:SJVN) At This P/E Ratio?
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … To keep it practical, we'll show how SJVN Limited's (NSE:SJVN) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
What does SJVN Limited's (NSE:SJVN) Balance Sheet Tell Us About Its Future?
While small-cap stocks, such as SJVN Limited (NSE:SJVN) with its market cap of ₹105.1b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Assessing first and foremost the financial health is. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.
Will SJVN Limited (NSE:SJVN) Continue To Underperform Its Industry?
and want to learn about Return on Equity using a real-life example. … But what is more interesting is whether SJVN can sustain or improve on this level of return. … Metrics such as financial leverage can impact the level of ROE which in turn can affect the sustainability of SJVN's returns.
Interested In SJVN Limited (NSE:SJVN)? Here's How It Performed Recently
Investors with a long-term horizong may find it valuable to assess SJVN Limited's (NSE:SJVN) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. … Was SJVN's recent earnings decline indicative of a tough track record. … SJVN's trailing twelve-month earnings (from 31 March 2018) of ₹12.22b has
SJVN Limited, together with its subsidiaries, engages in the generation and sale of power in India, Nepal, and Bhutan. It operates the Nathpa Jhakri Hydro Power Station with a capacity of 1500 MW located in Shimla district, Himachal Pradesh, India; and the Rampur Hydro Power Station with a capacity of 412 MW in Kullu District, Himachal Pradesh. The company also operates the Khirvire Wind Power Plant with a capacity of 47.6 MW in Nashik District, Maharashtra; the Charnakha Solar Power Plant with a capacity of 5 MW in Patan District, Gujarat; Sadla Wind Power Project with a capacity of 26 MW in Surendranagar district, Gujrat; and an 86 km cross border transmission line with a capacity of 400 kV from Muzaffarpur to Sursand. In addition, it provides consultancy services in the field of hydro electric projects, highway tunnels/railway tunnels, etc. The company was formerly known as Satluj Jal Vidyut Nigam Limited and changed its name to SJVN Limited in September 2009. SJVN Limited was incorporated in 1988 and is based in Shimla, India.
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