Idea Cellular's net sales increased 46.68% from Rs. 6,719.99 crores in FY2007-08 to Rs. 9,857.08 crores in FY2008-09. Operating profit grew 31.90% from Rs. 2,462.58 crores to Rs. 3,248.02 crores. However, net profit declined 18.35% from Rs. 1,006.15 crores to Rs. 821.54 crores due to a rise in interest, depreciation and tax expenses. Total income rose 49.36% from Rs. 6,919.04 crores to Rs. 10,334.40 crores driven by growth
This document contains business statistics for Prime Islami Life Insurance Limited from 2009-2012. It provides data on premium income, sold policies, manpower (agents and employers), average first year premium, number of offices, and renewal percentage for three divisions: Mukto Bima Prokalpo, Paribar Kallyan, and Janakallyan Bima. Across all divisions, most metrics declined from 2009-2011, with decreases in sold policies, average policies per agent, and first year premium income. Renewal percentages and manpower increased over this period for most divisions.
Bharti Airtel merged with its wholly owned subsidiary Wireless Business Services Private Limited (WBSPL) in October 2013 by acquiring a 100% stake. The merger was aimed to expand Airtel's services and market share by gaining access to WBSPL's spectrum. Projected financial statements for WBSPL after the merger show a positive profit after tax starting in 2015. Key assumptions for the financial forecasts include 10% annual revenue growth and 5% annual cost of goods sold growth based on expected economic conditions. The total projected value of WBSPL after 5 years as a result of the merger is Rs. 9,182.38 crore.
The document compares the cash flow statements of Bharti Airtel and Idea Cellular for the years ended March 31, 2017 and March 31, 2016. For both companies, there was a cash inflow from operating activities but an outflow from investing activities, indicating that the cash generated from operations was not enough to cover capital expenditures. Airtel and Idea both had a cash inflow from financing activities in 2017 through borrowing, but Idea had an outflow from financing in 2016. Despite losses in 2017, Airtel maintained the largest market share of wireless subscribers in India as of December 2017.
Ashok Leyland reported a 157% year-over-year growth in net sales for the first quarter of fiscal year 2011, driven by a 178% increase in vehicle volumes. However, operating profit margins of 10% were lower than expected due to lower growth in other business segments like engines and spare parts. Net profit jumped substantially to Rs. 123 crore compared to Rs. 7.8 crore in the prior year quarter, benefiting from higher sales volume and improved operating leverage. While volumes and sales grew strongly, margins were lower than estimates due to higher raw material costs and lower contribution from other business segments.
This document provides an analysis of the automobile sector in India, including key economic factors affecting it, risks, and details on several major automobile companies. It discusses factors like pricing pressure, financing options, consumer income, technology access, and government policies that influence the sector. Risks mentioned include labor issues, cost overruns, political instability, and raw material/fuel prices. Financial details and investment recommendations are provided for Maruti Suzuki, Hero MotoCorp, Tata Motors, Eicher Motors, Ashok Leyland, and TVS Motor. Opportunities in the growing sector are noted, but volatility from currency movements and imported costs are flagged as challenges.
1 Q09 Earnings Eng Final[20090421134102809]Sang Park
The document provides LG Electronics' earnings release for the first quarter of 2009. It summarizes key financial results including:
- Consolidated sales of KRW 15.89 trillion, up 10.7% year-over-year but down 7.5% quarter-over-quarter. The operating profit margin was 0.12%.
- Sales and profit results for each business sector, including home entertainment, mobile communications, home appliances, and air conditioning. Most sectors saw sales growth year-over-year despite the economic recession.
- Parent company sales of KRW 7.07 trillion, up 2.1% year-over-year, with an operating profit of KRW 437 billion,
The document discusses finance for small business owners. It outlines six common financial errors small businesses make including thinking all money paid to owners is profit and not keeping good financial records. It then explains how to use key financial statements like the balance sheet and profit and loss statement to better understand a business's financial position. The profit and loss statement is analyzed in detail, breaking down revenue, costs, gross profit, expenses and net profit. Percentages of revenue and expenses are also important to analyze on the profit and loss statement.
Idea Cellular's net sales increased 46.68% from Rs. 6,719.99 crores in FY2007-08 to Rs. 9,857.08 crores in FY2008-09. Operating profit grew 31.90% from Rs. 2,462.58 crores to Rs. 3,248.02 crores. However, net profit declined 18.35% from Rs. 1,006.15 crores to Rs. 821.54 crores due to a rise in interest, depreciation and tax expenses. Total income rose 49.36% from Rs. 6,919.04 crores to Rs. 10,334.40 crores driven by growth
This document contains business statistics for Prime Islami Life Insurance Limited from 2009-2012. It provides data on premium income, sold policies, manpower (agents and employers), average first year premium, number of offices, and renewal percentage for three divisions: Mukto Bima Prokalpo, Paribar Kallyan, and Janakallyan Bima. Across all divisions, most metrics declined from 2009-2011, with decreases in sold policies, average policies per agent, and first year premium income. Renewal percentages and manpower increased over this period for most divisions.
Bharti Airtel merged with its wholly owned subsidiary Wireless Business Services Private Limited (WBSPL) in October 2013 by acquiring a 100% stake. The merger was aimed to expand Airtel's services and market share by gaining access to WBSPL's spectrum. Projected financial statements for WBSPL after the merger show a positive profit after tax starting in 2015. Key assumptions for the financial forecasts include 10% annual revenue growth and 5% annual cost of goods sold growth based on expected economic conditions. The total projected value of WBSPL after 5 years as a result of the merger is Rs. 9,182.38 crore.
The document compares the cash flow statements of Bharti Airtel and Idea Cellular for the years ended March 31, 2017 and March 31, 2016. For both companies, there was a cash inflow from operating activities but an outflow from investing activities, indicating that the cash generated from operations was not enough to cover capital expenditures. Airtel and Idea both had a cash inflow from financing activities in 2017 through borrowing, but Idea had an outflow from financing in 2016. Despite losses in 2017, Airtel maintained the largest market share of wireless subscribers in India as of December 2017.
Ashok Leyland reported a 157% year-over-year growth in net sales for the first quarter of fiscal year 2011, driven by a 178% increase in vehicle volumes. However, operating profit margins of 10% were lower than expected due to lower growth in other business segments like engines and spare parts. Net profit jumped substantially to Rs. 123 crore compared to Rs. 7.8 crore in the prior year quarter, benefiting from higher sales volume and improved operating leverage. While volumes and sales grew strongly, margins were lower than estimates due to higher raw material costs and lower contribution from other business segments.
This document provides an analysis of the automobile sector in India, including key economic factors affecting it, risks, and details on several major automobile companies. It discusses factors like pricing pressure, financing options, consumer income, technology access, and government policies that influence the sector. Risks mentioned include labor issues, cost overruns, political instability, and raw material/fuel prices. Financial details and investment recommendations are provided for Maruti Suzuki, Hero MotoCorp, Tata Motors, Eicher Motors, Ashok Leyland, and TVS Motor. Opportunities in the growing sector are noted, but volatility from currency movements and imported costs are flagged as challenges.
1 Q09 Earnings Eng Final[20090421134102809]Sang Park
The document provides LG Electronics' earnings release for the first quarter of 2009. It summarizes key financial results including:
- Consolidated sales of KRW 15.89 trillion, up 10.7% year-over-year but down 7.5% quarter-over-quarter. The operating profit margin was 0.12%.
- Sales and profit results for each business sector, including home entertainment, mobile communications, home appliances, and air conditioning. Most sectors saw sales growth year-over-year despite the economic recession.
- Parent company sales of KRW 7.07 trillion, up 2.1% year-over-year, with an operating profit of KRW 437 billion,
The document discusses finance for small business owners. It outlines six common financial errors small businesses make including thinking all money paid to owners is profit and not keeping good financial records. It then explains how to use key financial statements like the balance sheet and profit and loss statement to better understand a business's financial position. The profit and loss statement is analyzed in detail, breaking down revenue, costs, gross profit, expenses and net profit. Percentages of revenue and expenses are also important to analyze on the profit and loss statement.
1. Cox Communications is considering acquiring Gannett for $2.7 billion to expand its customer base and achieve economies of scale.
2. If the acquisition is completed, Cox's short-term (1.5 years) funding need is estimated to be $3.03 billion, with $1.5 billion needing to be met through external financing. Its long-term (4.5 years) funding need is estimated to be $6.77 billion, with $6.77 billion needing external financing.
3. The key constraints Mr. Clement faces in satisfying Cox's funding needs are maintaining Cox Enterprises' 65% minimum economic stake and managing Cox's debt levels to maintain investment grade credit ratings.
1) Mahindra & Mahindra Ltd is an Indian automobiles and tractor manufacturing company with a market capitalization of Rs. 48,001 crores.
2) In the quarter ending June 2011, the company reported sales of Rs. 6,733.54 crores and a net profit margin of 11.12%.
3) Several mutual funds have significant holdings in Mahindra & Mahindra, including the JM Core 11 Fund and Religare AGILE Fund, reflecting over 8% of their total asset sizes.
This document provides an overview of Northrop Grumman Corporation's financial performance in Q1 2006 and outlook for 2006. It summarizes sales growth, operating margins, cash from operations, and guidance for each of its business segments. Non-GAAP measures like segment operating margin are also defined and reconciled.
Long term investment strategy (not named yet)Tanesh Gagnani
This strategy was designed in Oct 2010 and the report below was created
in 31st Oct 2010. Now (17th May 2012) results are compared with Sensex
and this strategy to invest is proving to be really successful for long
term investing with 40.5% excess returns than Sensex for the same
period. To see return calculation go to the last page.
northrop grumman Q4 and Year-End 2006 Slide Presentationfinance8
This document provides an overview of Northrop Grumman Corporation's financial performance in Q4 and full year 2006, as well as its outlook for 2007. In 2006, Northrop Grumman achieved total sales of $30.1 billion and a total operating margin of 8.1%. For 2007, the company expects sales between $31-32 billion and continued expansion of its total operating margin to a low of 9%. It also forecasts earnings per share between $4.80-$5.05 and cash from operations between $2.5-2.8 billion.
The document provides a summary of derivative market activity in India for March 30, 2010. It notes that open interest for Nifty futures increased by 3.79% while open interest for Minifity futures increased by 5.33%. The document also analyzes various stocks and indexes based on their open interest, price changes, put-call ratios, and other derivative indicators. It provides commentary on expected price movements and trading strategies.
CapitalHeight Financial Services is a leading Stock Advisory Company, having a strong hold in providing most authentic and accurate Equity Tips as well as Commodity Tips.
We are a team of highly qualified and experienced analysts, who deliver their expertise in providing stock market calls for traders which include tips like Stock Tips, Commodity Tips, MCX Tips, Equity Tips and Intraday Tips. All services are provided through SMS and Instant Messenger.
Our research is based around these services :
• Stock Tips
• Commodity Tips
• Equity Tips
• Intraday Tips
• NCDEX Tips
CapitalHeight always aim at providing services in accordance with the comfort levels of all traders and investors in stock market ranging from small investors to HNI’s, who trade in vast domain of share market such as Intraday, Index Trading (NIFTY & BANK NIFTY ), Equity Market, F&O, MCX, NCDEX.
For stock tips, mcx tips, commodity tips and equity tips, please visit our site at http://www.capitalheight.com or please call our 24/7 Customer Care Support us at +91 9993066624, 0731 - 4295 - 950
Or email us at: contact@capitalheight.com
L&T has announced orders worth ~Rs300bn for the quarter against reported order inflow of Rs334bn in Q1FY15. Order flow announced in the current quarter has been dominated by domestic orders which constituted 74% of orders against 44% in Q1FY15. Maintain buy.
Tech Mahindra's recent deal restructuring with BT ends uncertainty and guarantees volumes. While margins are currently weak due to the BT deal and Satyam uncertainty, margins are expected to eventually recover to peer levels as the company has a pedigree as a tier-1 player. The stock currently looks attractive relative to peers on an EV/Sales basis, trading at a substantial discount to peer averages. Based on this, the report upgrades Tech Mahindra to a "Buy" recommendation with a target price of Rs1,168 per share.
Ashok Leyland reported a 72% year-over-year growth in net sales for the second quarter of fiscal year 2011, driven by a substantial 72% increase in vehicle volumes. However, lower-than-expected growth in other businesses restricted overall revenue growth. Operating margins improved due to higher volumes and operating leverage. Net profit jumped 88.5% on the back of revenue growth and better margins. While outlook for the commercial vehicle industry remains positive, the analyst maintains a neutral rating on Ashok Leyland stock.
FAG Bearing recorded strong results for the second quarter of 2010, with net sales growing 35% year-over-year to Rs. 273 crore, beating estimates. Operating profit increased 66% to Rs. 52 crore due to lower raw material costs and improved operating leverage. Net profit surged 82% to Rs. 33.8 crore, aided by robust top-line growth and lower taxes. The analyst maintains a "Buy" rating and revised earnings estimates upward based on the company's solid performance.
The document provides an annual review and financial highlights for ALLTEL for 2004. Key points include:
- ALLTEL focused on improving customer service through initiatives in retail stores and call centers. This led to reductions in wireless churn and increases in higher-revenue customers.
- Wireless additions grew to over 600,000 customers and broadband additions reached over 90,000. Wireless and broadband revenues increased.
- Financial results were positive with $1 billion in net income, a 15% return on equity, and $2.5 billion in cash from operations.
- The company remained committed to delivering shareholder value and customer service while addressing industry changes through strategic mergers and evaluating wireline operations.
Cipla is a leading pharmaceutical company in india with a strong and profitab...Mayank Gupt
Cipla is a leading pharmaceutical company in India with over 30 manufacturing plants approved by international regulatory agencies. It has a diversified product portfolio without dependence on any single segment. The company focuses on research and development of new drug delivery systems and medical devices for respiratory medicine. Cipla has a low risk global strategy of partnering with large generic companies and plans to enter specialty segments through partnerships. It enjoys a strong position in the asthma segment. The company faces risks from unfavorable court rulings and increasing raw material costs.
Ambuja Cements reported a 7.8% year-over-year increase in net sales for the first quarter of 2010 due to a 4.3% rise in despatches and 3.3% higher realizations. Operating margins increased 328 basis points to 32.3% due to lower energy costs. Net profit grew 38.3% driven by strong operating performance. The company continues expanding capacity which is expected to reach 27 million tonnes by the end of 2010. While demand is forecast to remain robust, increased competition from new capacity additions could put pressure on prices and margins after May 2010.
The document is a report from The Chubb Corporation detailing changes to how losses are presented in their property and casualty underwriting results. Specifically, beginning in Q3 2008, foreign currency fluctuations will impact "net losses paid" and "increase (decrease) in outstanding losses" differently than before. The report provides definitions, ratios, and quarterly underwriting results for Q1 2008 and 2007 to reflect these presentation modifications. Incurred losses remain unchanged.
Exide Industries reported a 35.1% increase in net profit for 1QFY2011 compared to the previous year. Net sales grew 27.5% year-over-year to Rs1,152 crore, exceeding estimates. Earnings before interest, taxes, depreciation, and amortization margins improved from the previous quarter due to a decline in other expenditures. The analyst maintains an "Accumulate" rating for Exide Industries due to reasonable valuations and expects net sales and profit to grow annually over the next two years.
This document provides a summary of Northrop Grumman Corporation's Q1 2007 financial results. It includes highlights from the CEO and COO, sales and segment operating margin rates by business segment, key components of EPS and cash flow, and the company's outlook for 2007. The company reported 4% sales growth and a 9.3% total segment operating margin rate for Q1 2007. It expects full-year 2007 sales of $31-32 billion and EPS of $4.80-$5.05.
havells presentation for b school student and management employee.Kunal Pal
The document provides information about the Indian electrical equipment industry. It discusses key details such as:
- Asia-Pacific and Europe together account for over 70% of the global electrical equipment market due to strong economic growth in countries like India and China.
- China is the largest contributor to global electrical consumption, while India accounts for 7% and is forecasted to grow strongly.
- The Indian electrical equipment industry is dominated by the services sector, which contributes over 50% to GDP, while agriculture contributes 17%.
- Electricity production and consumption in India has grown steadily between 2013-2018 and is forecasted to reach over 1,900 TWh by 2022.
Metroglobal Limited reported its financial results for the quarter ended 31st March 2015. Net sales rose 56.82% to Rs. 1592.45 million compared to the same quarter last year. Net profit was Rs. 24.92 million, an increase of 5.95% year-over-year. Earnings per share for the quarter was Rs. 1.53. The company operates in dyes and dye intermediates, realty and infrastructure, and trading and finance businesses. On an annual basis, net sales and profit after tax are expected to grow at a CAGR of 27-28% and 8% from 2014-2017, respectively. The report recommends buying the stock with a target price of Rs
Firstcall recommend GHCL on 31.45% y/y rise in Q4FY15 net profitIndiaNotes.com
GHCL Limited reported financial results for the quarter ended March 31, 2015. Net profit rose 31.45% to Rs. 511.10 million compared to Rs. 388.83 million in the corresponding quarter of the previous year. Revenue increased 7.10% to Rs. 6410.45 million. EBITDA grew 7.58% to Rs. 1324.14 million. EPS stood at Rs. 5.11, up from Rs. 3.89 in the year-ago quarter.
Maruti Suzuki reported a 27% year-over-year increase in net sales to Rs. 9,147 crore for the second quarter of fiscal year 2011, which was 1.9% above estimates. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin declined 222 basis points year-over-year to 10.5% due to higher raw material costs and royalty charges. However, net profit grew 5% to Rs. 598 crore, beating estimates of Rs. 535 crore due to higher other operating and other income. While top-line growth was supported by a 27.4% increase in vehicle volumes, margins were impacted by rising costs.
1. Cox Communications is considering acquiring Gannett for $2.7 billion to expand its customer base and achieve economies of scale.
2. If the acquisition is completed, Cox's short-term (1.5 years) funding need is estimated to be $3.03 billion, with $1.5 billion needing to be met through external financing. Its long-term (4.5 years) funding need is estimated to be $6.77 billion, with $6.77 billion needing external financing.
3. The key constraints Mr. Clement faces in satisfying Cox's funding needs are maintaining Cox Enterprises' 65% minimum economic stake and managing Cox's debt levels to maintain investment grade credit ratings.
1) Mahindra & Mahindra Ltd is an Indian automobiles and tractor manufacturing company with a market capitalization of Rs. 48,001 crores.
2) In the quarter ending June 2011, the company reported sales of Rs. 6,733.54 crores and a net profit margin of 11.12%.
3) Several mutual funds have significant holdings in Mahindra & Mahindra, including the JM Core 11 Fund and Religare AGILE Fund, reflecting over 8% of their total asset sizes.
This document provides an overview of Northrop Grumman Corporation's financial performance in Q1 2006 and outlook for 2006. It summarizes sales growth, operating margins, cash from operations, and guidance for each of its business segments. Non-GAAP measures like segment operating margin are also defined and reconciled.
Long term investment strategy (not named yet)Tanesh Gagnani
This strategy was designed in Oct 2010 and the report below was created
in 31st Oct 2010. Now (17th May 2012) results are compared with Sensex
and this strategy to invest is proving to be really successful for long
term investing with 40.5% excess returns than Sensex for the same
period. To see return calculation go to the last page.
northrop grumman Q4 and Year-End 2006 Slide Presentationfinance8
This document provides an overview of Northrop Grumman Corporation's financial performance in Q4 and full year 2006, as well as its outlook for 2007. In 2006, Northrop Grumman achieved total sales of $30.1 billion and a total operating margin of 8.1%. For 2007, the company expects sales between $31-32 billion and continued expansion of its total operating margin to a low of 9%. It also forecasts earnings per share between $4.80-$5.05 and cash from operations between $2.5-2.8 billion.
The document provides a summary of derivative market activity in India for March 30, 2010. It notes that open interest for Nifty futures increased by 3.79% while open interest for Minifity futures increased by 5.33%. The document also analyzes various stocks and indexes based on their open interest, price changes, put-call ratios, and other derivative indicators. It provides commentary on expected price movements and trading strategies.
CapitalHeight Financial Services is a leading Stock Advisory Company, having a strong hold in providing most authentic and accurate Equity Tips as well as Commodity Tips.
We are a team of highly qualified and experienced analysts, who deliver their expertise in providing stock market calls for traders which include tips like Stock Tips, Commodity Tips, MCX Tips, Equity Tips and Intraday Tips. All services are provided through SMS and Instant Messenger.
Our research is based around these services :
• Stock Tips
• Commodity Tips
• Equity Tips
• Intraday Tips
• NCDEX Tips
CapitalHeight always aim at providing services in accordance with the comfort levels of all traders and investors in stock market ranging from small investors to HNI’s, who trade in vast domain of share market such as Intraday, Index Trading (NIFTY & BANK NIFTY ), Equity Market, F&O, MCX, NCDEX.
For stock tips, mcx tips, commodity tips and equity tips, please visit our site at http://www.capitalheight.com or please call our 24/7 Customer Care Support us at +91 9993066624, 0731 - 4295 - 950
Or email us at: contact@capitalheight.com
L&T has announced orders worth ~Rs300bn for the quarter against reported order inflow of Rs334bn in Q1FY15. Order flow announced in the current quarter has been dominated by domestic orders which constituted 74% of orders against 44% in Q1FY15. Maintain buy.
Tech Mahindra's recent deal restructuring with BT ends uncertainty and guarantees volumes. While margins are currently weak due to the BT deal and Satyam uncertainty, margins are expected to eventually recover to peer levels as the company has a pedigree as a tier-1 player. The stock currently looks attractive relative to peers on an EV/Sales basis, trading at a substantial discount to peer averages. Based on this, the report upgrades Tech Mahindra to a "Buy" recommendation with a target price of Rs1,168 per share.
Ashok Leyland reported a 72% year-over-year growth in net sales for the second quarter of fiscal year 2011, driven by a substantial 72% increase in vehicle volumes. However, lower-than-expected growth in other businesses restricted overall revenue growth. Operating margins improved due to higher volumes and operating leverage. Net profit jumped 88.5% on the back of revenue growth and better margins. While outlook for the commercial vehicle industry remains positive, the analyst maintains a neutral rating on Ashok Leyland stock.
FAG Bearing recorded strong results for the second quarter of 2010, with net sales growing 35% year-over-year to Rs. 273 crore, beating estimates. Operating profit increased 66% to Rs. 52 crore due to lower raw material costs and improved operating leverage. Net profit surged 82% to Rs. 33.8 crore, aided by robust top-line growth and lower taxes. The analyst maintains a "Buy" rating and revised earnings estimates upward based on the company's solid performance.
The document provides an annual review and financial highlights for ALLTEL for 2004. Key points include:
- ALLTEL focused on improving customer service through initiatives in retail stores and call centers. This led to reductions in wireless churn and increases in higher-revenue customers.
- Wireless additions grew to over 600,000 customers and broadband additions reached over 90,000. Wireless and broadband revenues increased.
- Financial results were positive with $1 billion in net income, a 15% return on equity, and $2.5 billion in cash from operations.
- The company remained committed to delivering shareholder value and customer service while addressing industry changes through strategic mergers and evaluating wireline operations.
Cipla is a leading pharmaceutical company in india with a strong and profitab...Mayank Gupt
Cipla is a leading pharmaceutical company in India with over 30 manufacturing plants approved by international regulatory agencies. It has a diversified product portfolio without dependence on any single segment. The company focuses on research and development of new drug delivery systems and medical devices for respiratory medicine. Cipla has a low risk global strategy of partnering with large generic companies and plans to enter specialty segments through partnerships. It enjoys a strong position in the asthma segment. The company faces risks from unfavorable court rulings and increasing raw material costs.
Ambuja Cements reported a 7.8% year-over-year increase in net sales for the first quarter of 2010 due to a 4.3% rise in despatches and 3.3% higher realizations. Operating margins increased 328 basis points to 32.3% due to lower energy costs. Net profit grew 38.3% driven by strong operating performance. The company continues expanding capacity which is expected to reach 27 million tonnes by the end of 2010. While demand is forecast to remain robust, increased competition from new capacity additions could put pressure on prices and margins after May 2010.
The document is a report from The Chubb Corporation detailing changes to how losses are presented in their property and casualty underwriting results. Specifically, beginning in Q3 2008, foreign currency fluctuations will impact "net losses paid" and "increase (decrease) in outstanding losses" differently than before. The report provides definitions, ratios, and quarterly underwriting results for Q1 2008 and 2007 to reflect these presentation modifications. Incurred losses remain unchanged.
Exide Industries reported a 35.1% increase in net profit for 1QFY2011 compared to the previous year. Net sales grew 27.5% year-over-year to Rs1,152 crore, exceeding estimates. Earnings before interest, taxes, depreciation, and amortization margins improved from the previous quarter due to a decline in other expenditures. The analyst maintains an "Accumulate" rating for Exide Industries due to reasonable valuations and expects net sales and profit to grow annually over the next two years.
This document provides a summary of Northrop Grumman Corporation's Q1 2007 financial results. It includes highlights from the CEO and COO, sales and segment operating margin rates by business segment, key components of EPS and cash flow, and the company's outlook for 2007. The company reported 4% sales growth and a 9.3% total segment operating margin rate for Q1 2007. It expects full-year 2007 sales of $31-32 billion and EPS of $4.80-$5.05.
havells presentation for b school student and management employee.Kunal Pal
The document provides information about the Indian electrical equipment industry. It discusses key details such as:
- Asia-Pacific and Europe together account for over 70% of the global electrical equipment market due to strong economic growth in countries like India and China.
- China is the largest contributor to global electrical consumption, while India accounts for 7% and is forecasted to grow strongly.
- The Indian electrical equipment industry is dominated by the services sector, which contributes over 50% to GDP, while agriculture contributes 17%.
- Electricity production and consumption in India has grown steadily between 2013-2018 and is forecasted to reach over 1,900 TWh by 2022.
Metroglobal Limited reported its financial results for the quarter ended 31st March 2015. Net sales rose 56.82% to Rs. 1592.45 million compared to the same quarter last year. Net profit was Rs. 24.92 million, an increase of 5.95% year-over-year. Earnings per share for the quarter was Rs. 1.53. The company operates in dyes and dye intermediates, realty and infrastructure, and trading and finance businesses. On an annual basis, net sales and profit after tax are expected to grow at a CAGR of 27-28% and 8% from 2014-2017, respectively. The report recommends buying the stock with a target price of Rs
Firstcall recommend GHCL on 31.45% y/y rise in Q4FY15 net profitIndiaNotes.com
GHCL Limited reported financial results for the quarter ended March 31, 2015. Net profit rose 31.45% to Rs. 511.10 million compared to Rs. 388.83 million in the corresponding quarter of the previous year. Revenue increased 7.10% to Rs. 6410.45 million. EBITDA grew 7.58% to Rs. 1324.14 million. EPS stood at Rs. 5.11, up from Rs. 3.89 in the year-ago quarter.
Maruti Suzuki reported a 27% year-over-year increase in net sales to Rs. 9,147 crore for the second quarter of fiscal year 2011, which was 1.9% above estimates. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin declined 222 basis points year-over-year to 10.5% due to higher raw material costs and royalty charges. However, net profit grew 5% to Rs. 598 crore, beating estimates of Rs. 535 crore due to higher other operating and other income. While top-line growth was supported by a 27.4% increase in vehicle volumes, margins were impacted by rising costs.
Kitex: ICRA upgrades long and short-term ratings to AA minus and A one Plus; BuyIndiaNotes.com
Kitex Garments reported a 10.64% increase in net profit to Rs. 159.75 million for Q1 FY16 compared to Q1 FY15. Revenue rose 6.15% to Rs. 1090.81 million. EPS increased 10.64% to Rs. 3.36. The company is recommended as a buy with a target price of Rs. 895 based on expected sales and profit growth over the next two years. The global children's wear market is large and growing, representing an opportunity for Kitex Garments as a leading children's apparel producer.
M M Forgings: Q4FY15 net profit up 42.18% y/y to INR111.15m, BuyIndiaNotes.com
The document provides a stock analysis report for M.M. Forgings Ltd, an Indian steel forging manufacturer. It includes the company's financial highlights for Q4 FY2015, with net profit up 42% and revenue up 17.8%. Forecasts estimate a 15% CAGR in net sales and 28% CAGR in PAT from FY2014-FY2017. The report recommends buying the stock with a target price of Rs 740, citing its historical financial performance and growth prospects in the growing Indian engineering sector.
Buy D-Link (India) as rollout of 4G services drives demand for networkingIndiaNotes.com
D-Link (India) Limited reported financial results for the quarter ended March 31, 2015. Net profit jumped 65.91% to Rs. 53.09 million compared to Rs. 32 million in the prior year quarter. Revenue rose 29.91% to Rs. 1728.90 million. Earnings per share stood at Rs. 1.50, up 40.21% year-over-year. Profit before tax increased 68.98% to Rs. 82.65 million. For the full fiscal year 2015, net profit grew 57% to Rs. 213.29 million on net sales growth of 28% to Rs. 6253.23 million. The company is expected to grow net sales and profit at
Tata Consultancy Services (TCS) is a leading global IT services company that has grown significantly over the past 50 years. It has over 420,000 employees serving clients in 50 countries. While TCS has increased its revenues and profits in recent years, it has also substantially increased its debt levels. Based on the company's financial performance and market valuation, the current share price of TCS appears to be overvalued relative to its intrinsic value.
Ceat Q1FY15: Higher opex impact margins; Book profitsIndiaNotes.com
CEAT reported results which were below expectations. Sales were broadly in line with expectations but EBITDA margin declined by 160 bps QoQ. Book profits at current levels as there is no substantial upside from current levels.
Long term investment: Buy Bharat Forge for target price of Rs1220IndiaNotes.com
Bharat Forge Ltd. (BFL), the flagship company of the USD2.5 billion Kalyani Group is a global provider of high performance, innovative, safety & critical components and solutions to various industries.
1) Tata Consultancy Services (TCS) reported strong results for the first quarter of fiscal year 2012, outperforming expectations with revenue growth of 6.3% over the previous quarter and 31.4% over the same quarter of the previous fiscal year.
2) A key highlight was 7.4% quarter-over-quarter growth in business volumes. While profit margins declined due to wage hikes, net profit remained flat due to foreign exchange gains.
3) Management maintained a positive outlook, highlighting strong demand environment and deal pipeline, and expects pricing increases later in the fiscal year.
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Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
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5. 5
value of 6.60%, we were confident that this result provided an even murkier picture of the company’s true
pricing.
CONCLUSION
Both our intrinsic (DCF) valuation and relative valuation approaches suggest that Bharti Airtel is overvalued,
leading us to a natural conclusion to sell. Though a mature, stable company who does not quite face the
same volatilities or risks of failure as other younger companies may, its recent track record of poor
investment project choices—particularly in its African markets—give us pause to reconsider the intrinsic
soundness of the company’s growth trajectory. It should also be noted that the DCF is built upon even the
most generous of reinvestment assumptions. Though operating margin can reasonably be expected to
(conservatively) remain the same or (optimistically) improve as operating losses in the African markets are
consolidated, it remains to be seen whether Airtel will be able to capture and integrate the advances in
technological efficiency without attendant investments in technological infrastructures: the key trade-off
in this scenario.
RECOMMENDATION
SELL. As our estimated value per share is a mere ₹220.74 relative to the current trading price of ₹344.50,
we believe this is an excellent opportunity to recognize some upside. Particularly in view of the recent
downward trend in its stock price, we would advise this change in position occur as soon as possible.
EV / Sales = 3.13 + 0.62 g + 3.60 Operating Margin - 1.70 DFR
- 3.70 Tax rate
7. 7
to maintain this growth of 11.28% over the next 5 years as well going forward. While estimating the
Operating Margin for Jet Airways in year 10, we assumed that Jet Airways would be able to improve its
operations and achieve the global industry average of 11.05%, which is an optimistic assumption
considering the financial situation it is in currently. Finally, we believe that Jet Airways wouldn’t increase its
reinvestment rate significantly considering its budgetary constraints of high-levels of debt and thus have
estimated the sales to capital ratio to be 1.15, which was the average ratio in the previous 5 years.
Using a bottom up levered beta of 1.22, the cost of equity comes up to 15.17%. With an after-tax cost of
debt of 6.83% and a debt capital ratio of 69%, the cost of capital for Jet Airways is 9.45%. Finally, to calculate
terminal value, we have ruled out the assumption that the company will have a cost of capital like mature
companies after 10 years. Jet Airways is already a mature company with a cost of capital of 9.45% and that
is the cost of capital we are assuming after year 10. We have however assumed that the company will be
earning a return on capital equal to the cost of capital, because we don’t believe that Jet Airways has any
long-lasting competitive advantages going forward that it would allow it to earn a higher return on capital.
Using all these estimations, the DCF model tells us that the estimated value per share for Jet Airways is
175.37 Rs. The current share price is 529 Rs and thus we believe that the equity is overvalued by 302%.
There are a multiple number of reasons we feel that the share price is overvalued by the market. To begin
with, Jet Airways was finally able to make profits in 2016 after 8 years and also released positive earnings
in the third quarter which has led to investors being bullish about the stock due to a short termism approach
which ignores the operational problems of Jet Airways, its previous years of losses and its high debt levels.
Another reason for the spike in the stock price have been speculations that Etihad Airways is planning to
raise its stake in Jet Airways from 24% to 49%. Jet Airways’ ability to earn profits in 2016 was not due to
significant improvement in operational efficiency or turnaround by management but due to the reduction
in fuel prices by 27% thus lowering Jet Airways’ operational expenses. We clearly believe that Jet Airways
has thus benefitted from market conditions in the recent times and we look forward to see if the aviation
company is able to improve its future cash flows going forward.
Going forward, the management is planning to use its cash flows and raise 300-million-dollar equity to
finance expansion abroad. However, the company has high levels of debt with a debt capital ratio of 0.69
and its return on capital is 5.89% which is far lower than its cost of capital of 9.45%. Thus, we believe Jet
Airways could increase shareholder value by using its cash flows to pay back its debt and pay dividends
rather than using it for expansion purposes.
RELATIVE VALUATION
The team collected data from S&P Capital IQ and used 31 companies as comparable to construct the
industry regression. All comparable companies were public companies that fell under the ‘airline services’
sector within the Asian emerging market sector. Since Jet Airways has a negative book value of equity, we
decided to use a firm multiple for our valuation. To choose the best multiple, we ran regressions across
multiples like EV/Sales, EV/EBITDA and EV/FCFF using different proxies for revenue growth, risk and re-
investment rate found out that EV/Sales had the highest R-Square of 51.08% as shown below:
10. 10
PAYPAL HOLDINGS
COMPANY OVERVIEW
On July 17, 2015, PayPal Holdings became an independent publicly traded company by spinning off from
eBay. It is a leading technology platform and digital payments company whose vision is to democratize the
financial services. PayPal offers a two-sided proprietary global technology platform to facilitate the
processing of payment transactions around the globe. This business is mature as they already have over
197 million users and process over 6.1 billion transactions. PayPal is also available in more than 200
countries and support 25 currencies. They will seek to expand their global capabilities in this business by
increasing their customer base and scale and expand their value proposition to customers. The growth of
their new business, digital payments, will depend on the expansion of multiple commerce channels, the
growth of mobile devices and merchant applications, the growth of consumers globally with Internet and
mobile access, and the pace of transition from cash and checks to digital forms of payment. Their strategy
will be to build new strategic partnerships to acquire new customers, recreate its role in the digital
ecosystem, and focus on innovation in the digital world. PayPal faces high competition as they compete
with a wide range of businesses including banks, credit card providers, technology and ecommerce
companies, and traditional retailers. They have also completed four acquisitions in 2015, which include
Xoom, Paydiant, and CyActive.
DCF VALUATION: NUMBERS AND NARRATIVES
PayPal is not only a processing company but is becoming a digital payments company by entering mobile
payments on behalf of consumers and merchants worldwide. CEO Dan Schulman’s vision aligns with moving
to being more mobile-banking friendly. Its mature business (payment processing) will witness decreasing
revenues and operating margins due to increased competition and concessions granted in several
Stable Growth
NOL: -
EBIT: $1721.69
Current
Revenue:
$11,273
Current
Margin:
15.27%
Revenue
Growth: 20%
Sales Turnover
Ratio: 1.86
Competitive
Advantages
Expected
Margin:
14.9%
Value of Op Assets
$48,339.30
+ Cash $8,928.00
= Firm Value $57,267.30
- Debt $481.65
= Equity $56,785.65
- Equity Options $105.45
Value per share $ 47.18
All existing options valued as
options, using current stock
price of $49.05.
Stable
Revenue
Growth: 2.33%
Stable
Operating
Margin:
14.9%
Stable ROC = 6.83%
Reinvest 34% of
EBIT(1-t)
Terminal Value: $68,326.50 * 0.5370 = $36,689.37
Riskfree Rate:
10 year t-bond rate = 2.33%
Beta: 0.63
Internet
Merchant
Services
Unlevered Industry Beta
corrected for cash
Current D/E : 0.82%
Risk Premium: 6.20%
Single Business
Operating Countries ERP
Country Risk
Premium: 6.20%
1 2 3 4 5 6 7 8 9 10
Cost of Equity:
6.26%
Cost of Debt:
2.33% + 1.6% = 3.93%
Tax Rate = 30%
Used S&P credit rating (BBB/Baa2)
to determine appropriate default
spread (1.6%).
∞
Terminal Year:
Rev: $44743.04603
COC: 6.83%
Tax Rate: 30%
EBIT (1 – t):
$4,666.70 Reinvestment:
$1,592.01
FCFF: $ 3,074.69
PayPal as of May 2, 2017
In Millions USD
Sanchit Kumar
Cost of Capital:
6.24%
Debt to Capital = 0.81%
Sales to Capital ratio
is internet merchant
services industry
average.
Expected margin is weighted
average of comparables (Global
Payment for Mobile Payments
& Total System Services for
Transaction Processing)
New business of
mobile payments =
high growth
Sensitivity Analysis:
13. 13
OCCIDENTAL PETROLEUM CORPORATION
COMPANY OVERVIEW
Occidental Petroleum Corporation (OXY), founded in 1920, engages in the acquisition, exploration, and
development of oil and gas properties in the United States and internationally. The company operates in
three segments: Oil and Gas, Chemical, and Midstream and Marketing. The Oil and Gas segment explores
for, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas. The Chemical
segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics,
potassium chemicals, ethylene dichloride, chlorinated isocyanurates, sodium silicates, and calcium
chloride; vinyls comprising vinyl chloride monomer and polyvinyl chloride; and other chemicals, such as
resorcinol. The Midstream and Marketing segment gathers, processes, transports, stores, purchases, and
markets oil, condensate, NGLs, natural gas, carbon dioxide, and power. This segment also trades around its
assets consisting of transportation and storage capacity, as well as oil, NGLs, gas, and other commodities.
Over the last 2.5 years, the oil industry experienced its deepest downturn since the 1990s. After OPEC
agreed to cut production late last year, oil prices strengthened for several months. However, as spring
rolled around, US inventories began to build, and prospects of stronger oil prices have faded somewhat.
While OXY has certainly seen consecutive years of negative earnings/growth, the company is heavily
diversified within the Oil and Gas sector. As an ‘Integrated Oil and Gas’ company, OXY seems to be hedged
against overall oil price volatility. In recent years, OXY’s Chemical & Midstream and Marketing arms have
done extraordinarily well. Furthermore, OXY has divested of unprofitable plants in California and North
Dakota, while developing new partnerships in lucrative areas outside of the oil sector. In early 2011,
Occidental partnered with Abu Dhabi’s state oil company in developing the Shah Field, one of the largest
natural gas fields in the Middle East, through a joint venture known as Al Hosn Gas. Al Hosn Gas became
operational in 2015. While Occidental will certainly see short-term setbacks as oil prices become more
volatile and the company diversifies further, strategic management decisions could generate long-term
returns.
DCF VALUATION: NUMBERS AND NARRATIVES
16. 16
TESLA
COMPANY OVERVIEW
Tesla designs, develops, manufactures and sells high-performance fully electric vehicles, and energy
storage systems, as well as installs, operates and maintains solar and energy storage products, including
generation, storage and consumption. Tesla has established a global network of vehicle stores, service
centers and Supercharger stations to accelerate the widespread adoption of Tesla products. Tesla’s
vehicles, engineering expertise across multiple products and systems, intense focus to accelerate the
world’s transition to sustainable transport, and business model differentiates them from other
manufacturers.
DCF VALUATION: NUMBERS AND NARRATIVES
Tesla is a relatively young, high growth company with negative earnings. The team’s assumption for the key
value drivers—5-year compounded annual growth rate, target pre-tax operating margin and sales-to-
capital ratio—depended significantly on the story that the team believed for Tesla. In determining the type
of company that Tesla has evolved into, we looked to the company’s competitive advantages. Tesla’s
primary competitive advantages are the loyalty that the Tesla brand commands and its significant
technological edge over its competitors.
Brand Loyalty & Technological Edge
Elon Musk contributes heavily to consumers’ perceptions of the company. Mr. Musk’s effect on the
company can be compared to Steve Jobs’ effect on Apple during his time as Chairman and CEO of the Silicon
Valley tech giant. Mr. Musk, much like Mr. Jobs, is an extremely effective showman and salesman primarily
due to two reasons: the consistency of his vision for a sustainable future which is reflected in all of Tesla’s
Stable Growth
NOL:
EBIT:
(634.73)
Current
Revenue:
8,549.35
Current
Margin:
(7.4%)
Revenue
Growth: 50%
Sales-to-Capital
Ratio: 1.40
Competitive Advantages:
Brand loyalty, technological
advantage
Value of Op Assets
$37,444.82
+ Cash $4,006.60
- Value of Debt $8,869.06
= Value of Equity $31,714.03
- Equity Options $2,823.73
Value per share $177.13
All existing options valued as
options, using current stock
price of $308.35.
Stable
Revenue
Growth: 2.33%
Stable
Operating
Margin: 9.8%
Stable ROC = 9%
Terminal Value: 8,632.20 / (7.50% – 2.33%) = $166,967.19
Riskfree Rate:
T-Bond rate = 2.33%
Beta = 0.945
Auto & Truck; Electronics
(General)
Unlevered beta
corrected for cash
Current D/E : 13.02%
Weighted ERP: 5.86%
ERP of USA, Norway, China, and
Rest of the World.
Cost of Equity:
8.38%
Pre-Tax Cost of Debt:
2.33% + 5.5% = 7.83%
Tax Rate = 30%
Weights:
Debt = 11.52%
Equity = 88.48%
Cost of Capital = 8.04%
Used S&P credit rating to
determine appropriate default
spread.
Terminal Year:
$ 169,790.83 Revenues
7.50% COC
30% Tax rate
$ 11,647.65 EBIT (1-t)
$ 3,015.45 Reinvestment
$ 8,632.20 FCFF
Tesla in May 2017
In Millions USD
Sahaj Sood
17. 17
products, and his ability to sell that vision from a superior, almost ideological standpoint. Tesla’s
technological edge also distinguishes it from other automakers. One of the company’s significant
breakthroughs is its lithium ion battery technology, whose energy storage capabilities have contributed
greatly to the advancement of the range of fully-electric cars. Therefore, in its valuation, the team decided
that Tesla should be viewed as much as a tech company as it is viewed an automotive company. Despite its
acquisition of SolarCity late last year, the team believed that over the next decade, its margins would be
driven mainly by its automotive business segment. These competitive advantages led us to select a target
pre-tax operating margin of 9.80%, the same margin earned by high-end automaker BMW last year. This is
despite Tesla’s shift towards becoming a mass-market producer of cars who typically earn a lower margin
than our assumed target. We chose BMW as a point of reference as it primarily produces high end vehicles
and also has a fully electric car in its fleet of offerings in the form of its ‘i’ Series.
Value Drivers: Bridging the story-telling and number-crunching
Our view of Tesla as a tech and automotive company drove our assumptions of the value drivers. For the
sales-to-capital ratio, the team computed a weighted average measure. The weights used were the
estimated value of the “Auto & Truck,” “Electronics (General)” and “Power” business segments relative to
the estimated value of the whole business. To calculate the value of Tesla’s “Electronics (General)”
business, the team split the revenues earned by the company over the last twelve months equally between
that segment and the “Auto & Truck” segment. We then computed each segment’s estimated values by
multiplying the respective revenues by the industry average EV/Sales ratios. We came to a sales-to-capital
ratio of 1.40. Tesla’s anticipated release of the mass-market Model 3 is the main reason for the team’s
50% five-year compounded annual growth rate estimate. Early indications of consumer excitement for the
Model 3 is evidenced by the 180,000 reservations that were made during the first day of ordering for the
mass-market car, as reported by the Wall Street Journal. If Tesla can match supply with demand, we believe
that our 50% growth rate is more-than-justifiable.
The team also elected to override four key assumptions of the FCFF model. We believe that in stable
growth, Tesla will have a cost of capital of 7.5%, higher than the typical ‘risk-free rate + 4.5%’ estimate for
stable growth firms in maturity. This is driven by the company’s purchase of SolarCity, which operates in a
nascent industry, and Mr. Musk’s track record of being a bullish, risk-taking CEO. We also overrode the
assumption that Tesla will earn a return on capital equal to its cost of capital in maturity by assuming a 9%
ROC. We qualify this by assuming that Tesla’s competitive advantages in technology and brand loyalty will
not necessarily fade over the next decade and beyond. However, the team, recognizing Mr. Musk’s
penchant for risk-taking and involvement in a variety of different projects which could indicate a lack of
clear focus, coupled with the reality that many young growth firms fail, has decided to consider a 10%
probability of failure for Tesla in the future. We chose 10% since Mr. Musk’s vision for his many companies
appears to be unfolding on schedule and according to plan, yet his involvement in many other projects such
as Spacex, Neuralink and The Boring Company could mean that he is spreading himself too thin. Finally, we
overrode the assumption that the company has no losses carried forward from prior years into this
valuation. Tesla is currently a negative earnings company with an NOL carried forward of $341.17 million
that will shield its income from taxes.
After incorporating these assumptions into the valuation model, the team arrived at a value per share of
$177.13. The day close price as of May 7, 2017 was $308.35, indicating that the stock is overvalued by
74.08%. Below is a scenario analysis the team conducted:
18. 18
Value per share in 2027 assuming EBIT (Operating) margin =
8.5%
Sales to
Capital
1.28 (Auto) $56.41
1.40 (Weighted Average) $95.27
1.66 (Tech) $160.19
Value per share in 2027 assuming EBIT (Operating) margin =
9.8%
Sales to
Capital
1.28 (Auto) $138.27
1.40 (Weighted Average) $177.13
1.66 (Tech) $242.05
Value per share in 2027 assuming EBIT (Operating) margin =
11.5%
Sales to
Capital
1.28 (Auto) $245.33
1.40 (Weighted Average) $284.19
1.66 (Tech) $349.11
The analysis indicates that at 50% growth, Tesla would need an 11.5% growth and a slightly higher sales-
to-capital ratio than the 1.40 weighted average to achieve a value per share similar to the market price.
Assuming the same sales-to-capital ratio and pre-tax operating margin, the company would need to display
growth of 61% to achieve $308.80 value per share. The team feels that this is unlikely, and that the market
will eventually correct itself. Therefore, we recommend: SELL.
RELATIVE VALUATION
The team used S&P Capital IQ to screen for comparable companies in the ‘Storage Batteries’ and
‘Automobile Manufacturers’ sectors with market capitalizations greater than $1 billion to construct the
industry regression. Our final screening contained 42 companies: 40 automobile manufacturers and 2 in
the storage batteries sector. We chose to screen only for publicly traded companies across the world. Since
Tesla is a negative earnings, high-growth company, the team opted to use the EV/Sales multiple. The key
drivers of the EV/Sales multiple include operating margin, re-investment rate, revenue growth, and the
weighted average cost of capital.After creating a correlation matrix of the various proxies for growth, risk,
and cash flow potential, the team considered proxies with high correlations to the multiple and low
correlations between independent variables themselves to contain multi-collinearity. The team ran some
initial regressions to obtain a clearer picture of which independent variables best predicted the EV/Sales by
examining different R-Squared and t-value results. The following shows our final regression results:
Model Summary
S R-Sq R-Sq (Adj.)
0.794554 65.71% 62.00%
Coefficients
Term Coefficient SE Coeff. T-Value P-Value VIF
Constant 1.082 0.297 3.65 0.001
19. 19
Total Revenues, 5 Yr
CAGR [LTM]
5.094 0.697 7.31 0.000 1.08
Pre-tax Operating
Margin
3.60 2.51 1.44 0.159 1.06
5-year beta -1.132 0.223 -5.08 0.000 1.13
DFR 0.222 0.724 0.31 0.761 1.10
Regression Equation
Inputting the independent variables into the regression equation yielded a predicted EV/Sales of 5.37. The
price per share predicted for Tesla using this multiple is $265.76, 16% overvalued. The team chose to use
5-year beta as the risk measure because of its significantly higher significance compared to DFR. We also
excluded re-investment to stay consistent with our belief that automakers’ reinvestment rates are not
properly representative of Tesla’s, which reinvests more in line with tech companies.
Market Regression Equation
Inputting the independent variables into the market regression equation yielded a predicted EV/Sales of
3.57. The price per share for Tesla using this multiple is $171.65, 80% overvalued.
RECOMMENDATION
Sell. Based on our DCF valuation of $177.13, we recommend selling Tesla at the current price of $308.35.
EV / Sales = 1.082 + 5.094 Total Revenues, 5 Yr CAGR [LTM] + 3.60 Pre-
tax Operating Margin - 1.132 5-year beta + 0.222 DFR
EV / Sales = 2.93 – 0.65 g + 4.48 Operating Margin + 1.80 DFR – 1.80
Tax Rate
20. 20
APPENDIX
APPENDIX A: MULTICOLLINEARITY TESTS, JET AIRWAYS
We found out that 5-year beta, 10 Yr Revenue CAGR and Operating Margin had all the highest correlation
with EV/Sales and had very low correlations with each other. Operating Margin’s T-Value is 2.74 while 5-
Year Beta’s T-Value is about 1.5 and are thus both statistically significant. Revenue 10 YR CAGR has a T-
Value of 1.02 which is lower than the statistically significant threshold of 1.5, but we have included it as
one of our chosen proxies for a more holistic approach.