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Equity Valuation
of
TCSLtd Company
Prepared by :- Syed
Ibrahim
Email: - syedibrahimhuffaz@gmail.com
n

ny
d
com
 Introduction Sheet Balance Sheet Income Statement Cash Flows

TATA

Share Price of DDM 2,261

25000
pointer
end 10
1500
20
25
3800 20000
Equity Divid
Start 00 0 00
15000 1316
Red 1000300
0
50

Yello 2500 9385

10000
0

Green 1500 6538 11137

3914 4893 4306
End 5000 5000 7869
2740
1370
0
VALUATED3800SHARE 1 2 3 4 5 6 7 8 9 10

PRICE
Summary Of the Company
TCS Ltd Company
Company Overview
(Rs. In Crores , except per share data)

Company Information Company Description

Industry Computers & Softwares
they are a leader in
Sector Software-Top the world. Our conti
Country India experience every da
BSE/NSE Code 532540 /TCS value to global orga
success in the field a
Market Index BSE - 500 Products & Services
Year end 31-Mar 1.Application Developme
Reporting currency Rs. Services,4.Infrastructure
Integration.
ISIN: INE467B01029

0 Total Profit Net Cash

00
0,
2 2 00
0
0,
2 0 00
0
0, 1
1 8 00
0
0, 137606
1 6 00
0
4 0, 118897
1 00
0
0, 100616
1 2 00
0 84788
0,
10 00 71094
,0 59070
80 0
0 48426
,0 38858
60 0 29275
0 22404 23043
,0
 0, 118897
1 4 00
0
0, 100616
1 2 00
0 84788
0,
10 00 71094
,0 59070
80 0
0 48426
,0 38858
60 0 29275
0 22404 23043
,0
40 0
0
,0
20 0
1 2 3 4 5 6 7 8 9 10 11
year 9 10 11 12 13
GDP Growth 5.04% 11.23% 7.75% 3.99% 5.68%
Industry Growth 1.00% 0.08% 14.78% 20.59% 9.79%
company Growth 1.5% 2.86% 27.04% 32.73% 24.62%

Year Total Profit Net Cash Sales Sales

2009 4,696.21 479.93 22,403.65 22403.65
2010 5,618.51 3332.30 23,043.07 23043.07
2011 7,569.99 4806.67 29,274.54 29274.54
2012 10,975.98 9107.72 38,858.28 38858.28
2013 12,786.34 11202.32 48,426.14 48426.14
2014 15,049.61 12915.69 59,069.55 59069.545
2015 18,113.13 14031.27 71,093.83 71093.832
2016 21,602.22 15779.90 84,788.45 84788.447
2017 25,634.75 18129.06 100,616.10 100616.1
2018 30,292.35 21178.51 118,897.11 118897.11
2019 35,059.06 26293.32 137,606.41 137606.41
2020 39,722.43 33962.00 155,910.05 155910.05
2021 44,039.31 44632.41 172,853.78 172853.78
2022 47,753.51 58659.50 187,431.95 187432
2033 50,618.72 76251.95 198,677.87 198677.87
2024 53,655.84 94899.95 210,598.54 210598.54
Ratio Button 3
 Cash Flows Calculation Sheet Assumption Sheet Beta Valuation Cost of Equity

Dash Board
TATA CONSULTING SERVICES

23310 25%
quity Dividend17257 20746
21990

20%
GDP Growth

19132 Industry Growth

13160 15%
15231
9385
6538 11137 10%
7869 5%

0%
6 7 8 9 10 11 12 13 14 15 16 17 1 2 3 4 5 6 7 8 9 10

ompany
Stock Data
Price as on 15nd Nov 2013

DCF Based Valuated Price

Company Description 52 Week High
52 Week Low
they are a leader in the global marketplace and among the top 10 technology firms in
the world. Our continued rapid growth is a testament to the certainty our clients YTD Change
experience every day. Building on more than 40 years of experience, we add real YTD Change in %
value to global organizations through domain expertise plus solutions with proven Beta Vs Sensex
success in the field and world-class service. It’s how we keep you moving forward.
Products & Services Cost of Capital

1.Application Development & Maintenance, 2.Corporate Performance Management, 3.Enterprise Quality

Services,4.Infrastructure Services ,5.Packages Application Services ,6.Product Engineering ,7.Systems
Integration.

Researcher
Sales 210599
198678
187432
172854
155910
1. The divedend
of the company
137606 is increasing
118897 Yearly
6
2.The Profit &
Sales also
increasing
 118897 Yearly
6
2.The Profit &
Sales also
increasing

10 11 12 13 14 15 16
 14 15 16 17 18
6.23% 6.63% 6.86% 6.92% 6.97%
13.56% 12.59% 12.03% 11.88% 11.78%
21.98% 20.36% 19.26% 18.67% 18.17%
 Cost of Equity Competators DCF Valuation

Industry Growth
wth 35%
30% company Growth
Growth
25%
20%
15%
10%
5%
0%
1 2 3 4 5 6 7 8
8 9 10 9 10

Price as on 15nd Nov 2013 ₹ 2,025.75

DDM FCFF
DCF Based Valuated Price ₹ 2,261 3,795.15
2090.85
1255.85

YTD Change in %
0.162412263
8.88%

Researcher Report

The Calculated Share

Price of the Company is
Under Valued so the

Report Suggest to

Buy for the Stock

 Report Suggest to

Buy for the Stock

 HOME Income Statement Cash Flows Calculation Sheet
1

s.no Balance Sheet 2009 2010 2011 2012 2013

(in Crore's) T A T A
1- SOURCES OF FUNDS

A Equity & Liabilities

share holders funds
(a)Equity share 97.86 195.72 195.72 195.72 195.72
(b)Preference shares 100 100 100 100 100
(c.) Reserves and surplus 13248.39 14820.9 19,283.77 24,560.91 32,266.53
Total Share Holders Funds 13446.3 15117 19579.5 24856.6 32562

B Non current Liabilities

(a)Secured Loans 32.63 29.25 35.87 93.47 161.6
(b)Unsecured Loans 7.74 6.49 5.25 2.76 1.52
Total Non current Liabilities 40.37 35.74 41.12 96.23 163.12

C Current Liabilities
(a)Current Liabilities 3604.18 3926.61 2490.11 4544.52 4165.66
(b)Provisions 1450.23 3352.74 3932.39 4761.43 6121.11
Total Current Liabilities 5054.41 7279.35 6422.5 9305.95 10287
TOTAL LIABILITIES 18,541.03 22,431.71 26,043.11 34,258.81 43,012.14

2- APPLICATIONS OF FUNDS
ASSETS
A Non Current Assets
(a)Fixed Assets
(i)Gross block 4359.24 4871.21 6,030.16 7,282.02 9,183.36
(ii)Less Depreciation 1690.16 2110.69 2,607.98 3,218.40 4,079.08
(iii)Net block 2669.08 2760.52 3422.18 4063.62 5104.28
(b)Capital working progress 685.13 940.72 1,345.37 1,726.88 1,763.85
Total Fixed Assets 3354.21 3701.24 4767.55 5790.5 6868.13
(c)Investments 5936.03 7893.39 5795.49 5688.39 6324.38
Total Non Current Assets 9290.24 11595 10563 11478.9 13193
B Current Assets
(a)Sundry debtors 3717.73 6.78 5.37 4.14 6.34
(b)Cash and Bank Balance 479.93 3332.3 4,806.67 9,107.72 11,202.32
(c)Inventories 16.95 212.31 224.77 203.18 4,054.16
(d)Loans & Advances 3910.85 4101.84 5,063.51 7,877.86 14,556.81
(e)Fixed Deposits 1125.33 3183.85 5,379.75 5,587.02 0
 Total Current Assets 9250.79 10837 15480.1 22779.9 29820
C Miscellaneous Expences 0 0 0 0 0
TOTAL ASSETS 18,541.03 22,431.71 26,043.11 34,258.81 43,012.14

Check sum B/s Tally B/s Tally B/s Tally B/s Tally B/s Tally

Working Capital 4196.38 3557.73 9057.57 13473.97 19532.86

Net Cash 479.93 3332.30 4806.67 9107.72 11202.32

Calculation Sheet Assumption Sheet Beta Valuation Cost of Equity DCF Valuation

2014 2015 2016 2017 2018 2019 2020

T A T A C O N S U L T A N S Y S E R V I C E S Ltd

195.72 195.72 195.72 195.72 195.72 195.72 195.72

100 100 100 100 100 100 100
37,948.38 45,733.40 54,599.87 64,847.35 76,683.25 88,796.09 100,646.59
38244.1 46029.12 54895.59 65143.07 76978.97 89091.812 100942.3

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

125.26 150.76 179.80 213.36 252.13 291.80 330.61

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

14328.41 17245.12 20567 24406.29 28840.69 33378.851 37818.72

52,697.77 63,425.00 75,642.39 89,762.73 106,071.79 122,762.46 139,091.65

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

9026.289 10863.69 12956.34 15374.93 18168.41 21027.336 23824.28

9151.01 11013.81 13135.37 15587.38 18419.46 21317.89 24153.48
16092.04 19367.76 23098.53 27410.38 32390.59 37487.48 42473.86

NA NA NA NA NA NA NA

12,915.69 14,031.27 15,779.90 18,129.06 21,178.51 26,293.32 33,962.00

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA

NA NA NA NA NA NA NA
 ### ### 52,543.87 ### 73,681.20 85,274.98 ###
0 0 0 0 0 0 0
52,697.77 63,425.00 75,642.39 89,762.73 106,071.79 122,762.46 139,091.65

B/s Tally B/s Tally B/s Tally B/s Tally B/s Tally B/s Tally B/s Tally

22277.31 26812.12 31976.86 37946.06 44840.51 51896.13 58799.07

12915.69 14031.27 15779.90 18129.06 21178.51 26293.32 33962.00

DCF Valuation

2021 2022 2023 2024

195.72 195.72 195.72 195.72

100 100 100 100
111,616.63 121,055.11 128,336.16 136,054.07
111912.35 121350.83 128631.88 136349.79

NA NA NA NA

NA NA NA NA

366.54 397.46 421.31 446.58

NA NA NA NA

NA NA NA NA

41928.719 45464.91 48192.805 51084.373

154,207.61 167,213.20 177,245.99 187,880.75

NA NA NA NA

NA NA NA NA

NA NA NA NA

NA NA NA NA

26413.41 28641.069 30359.533 32181.105

26778.39 29036.83 30779.04 32625.78
47089.76 51061.22 54124.90 57372.39

NA NA NA NA

44,632.41 58,659.50 76,251.95 94,899.95

NA NA NA NA

NA NA NA NA

NA NA NA NA
 ### ### ### ###
0 0 0 0
154,207.61 167,213.20 177,245.99 187,880.75

B/s Tally B/s Tally B/s Tally B/s Tally

65189.14 70687.07 74928.29 79423.99

44632.41 58659.50 76251.95 94899.95

 HOME Balance Sheet Cash Flows Assumption Sheet

S.no Profit & Loss Account 2009 2010 2011 2012 2013
(In Crore's) T A T A
1 Revenue from operations (Sales) 22404 23045 29276 38859 48427
Less: Sales Return 1.73 -1.38 -0.87 -0.26 0.00
Less: Excise duty 2.08 0.39 0.27 0.25 0.82
Revenue from operations (net) 22,403.65 23,043.07 29,274.54 38,858.28 48,426.14
2 Expenses
(a) Cost of materials consumed 54 24 18 12 25
(b) power and fuel 164 184 240 292 376
(d) Employee benefits expense 7370 7882 10190 14100 17082
(e) Other Manufacturing Exp 6948 6447 8136 10576 13386
(f)selling & Adm exp 1218 1268 1195 1686 0
(g)Miscellaneous Exp 629 571 724 806 3252
Total Expenses 16,382.82 16,375.90 20,502.72 27,472.56 34,119.87
3 OPETATING PROFIT (1-2) 6,020.83 6,667.17 8,771.82 11,385.72 14,306.27
4 Other income -456 182 486 2685 2230
5 EBITDA (1-2) 5565 6849 9258 14071 16537
6 Interest (finance cost) 7 10 20 16 31
7 depreciation 417 469 538 688 803
8 Extraordinary items -103 -14 0 -129 0
9 EBT 5037 6356 8700 13237 15703
10 Tax expense: 340 738 1130 2261 2917
Reported Net profit 4,696.21 5,618.51 7,569.99 10,975.98 12,786.34
Earning before Appropriation
16,329.15 16,352.15 20,484.97 27,460.75 34,094.83

Preferred Dividend 7 17 11 22 19
Equity Dividend 1370 3914 2740 4893 4306
Dividend Distribution Tax 234 658 451 797 712

Carried Forward to B/S 14,718 11,763 17,283 21,748 29,058

Face Value per share

Shares in issue 9786 19572 19572 19572 19572

Dividend/Share
EPS 48 29 39 56 65
Market Price
Market Capitalization
Dividend Growth Rate
ssumption Sheet Beta Valuation Cost of Equity DCF Valuation Report Writing

2014 2015 2016 2017 2018 2019 2020 2021

T A T A C O N S U L T A N S Y S E R V I C E S Ltd
59071 71096 84791 100619 118901 137610 155914 172859

2 2 2 3 3 4 4 5
59,069.55 71,093.83 84,788.45 100,616.10 118,897.11 137,606.41 155,910.05 172,853.78

57 69 82 98 115 134 151 168

458 551 658 780 922 1067 1209 1341
20494 24666 29417 34909 41251 47742 54093 59971
16733 20139 24018 28502 33680 38980 44165 48965
2287 2753 3283 3896 4604 5329 6038 6694
1955 2353 2806 3330 3935 4554 5160 5721
41,984.87 50,531.38 60,265.10 71,514.92 84,508.52 97,806.53 110,816.22 122,859.31
17,084.67 20,562.46 24,523.35 29,101.18 34,388.59 39,799.88 45,093.84 49,994.47
1410 1696 2023 2401 2837 3284 3720 4125
18494 22259 26547 31502 37226 43084 48814 54119
32 39 47 55 65 76 86 95
1083 1303 1554 1845 2180 2523 2858 3169
0 0 0 0 0 0 0 0
17379 20917 24946 29602 34981 40485 45870 50855
2329 2803 3343 3968 4688 5426 6148 6816
15,049.61 18,113.13 21,602.22 25,634.75 30,292.35 35,059.06 39,722.43 44,039.31

42,927.43 51,665.80 61,618.05 73,120.43 86,405.74 100,002.29 113,304.04 125,617.50

29 35 41 49 58 67 76 85
6538 7869 9385 11137 13160 15231 17257 19132
1087 1309 1561 1852 2189 2533 2870 3182

35,273 42,453 50,631 60,082 70,999 82,171 93,101 103,219

 2022 2023 2024

187437 198684 210605

5 6 6
187,431.95 198,677.87 210,598.54

182 193 204

1454 1541 1633
65029 68931 73067
53095 56280 59657
7258 7694 8155
6203 6576 6970
133,221.04 141,214.30 149,687.16
54,210.91 57,463.56 60,911.38
4473 4741 5025
58684 62205 65937
103 109 116
3436 3642 3861
0 0 0
55144 58453 61960
7391 7834 8304
47,753.51 50,618.72 53,655.84

136,211.85 144,384.56 153,047.63

92 97 103
20746 21990 23310
3451 3658 3877

111,924 118,639 125,758

 HOME Income Statement Balance Sheet
0 0
S.no Cash Flows Statement 2009 2010 2011 2012
(in Crore's) T A T
1 Cash Flows From Operations
Profit After Tax 4,696.21 5,618.51 7,569.99 10,975.98
Add:- Finance cost 7 10 20 16
Less:- Other income 456 -182 -486 -2685

Change in Current Assets -1586 -4643 -7300

Change in Current Liabilities 2225 -857 2883
TOTAL C F O 6,084.60 1,603.72 ###
2 Cash Flows From Investing
Change in Non-Current Assets -2304.39 1031.59 -915.85
Other income 182 486 2685
TOTAL C F I -2122.29 1518.03 1769.33
3 Cash Flows From Financing
Change in Non-Current Liabilities -4.63 5.38 55.11
Change in share capital 97.86 0 0
Equity dividents -3914 -2740 -4893
Preference Share divident -17 -11 -22
Divident Tax -658 -451 -797
Interest / finance cost -10 -20 -16
TOTAL CFF -4505.25 -3216.55 ###
TOTAL CASH FLOWS -542.94 -94.80 -13.54

FREE CASH FLOWS TO EQUITY 5,732.94 542.79 2,922.96

nce Sheet Assumption Sheet Beta Valuation Cost of Equity DCF Valuation

2013 2014 2015 2016 2017 2018 2019 2020

T A T A C O N S U L T A N S Y S E R V I C E S Ltd

12,786.34 15,049.61 18,113.13 21,602.22 25,634.75 30,292.35 35,059.06 39,722.43

31 32 39 47 55 65 76 86
-2230 -1410 -1696 -2023 -2401 -2837 -3284 -3720

-7040 -6786 -7452 -8487 -9808 -11329 -11594 -11343

981 4042 2917 3322 3839 4434 4538 4440
### 10,928.06 ### ### 17,319.88 ### 24,795.40 29,184.73

-1713.62 -2899.53381 -3275.721 -3730.7609 -4311.85383 -4980.213 -5096.887489 -4986.377

2230 1410 1696 2023 2401 2837 3284 3720
516.77 -1489.969 -1579.22 -1707.47 -1910.872 -2143 -1813.214 -1265.927

66.89 -37.86 25.50 29.04 33.56 38.77 39.67 38.81

0 0 0 0 0 0 0 0
-4306 -6538 -7869 -9385 -11137 -13160 -15231 -17257
-19 -29 -35 -41 -49 -58 -67 -76
-712 -1087 -1309 -1561 -1852 -2189 -2533 -2870
-31 -32 -39 -47 -55 -65 -76 -86
### -7724.72 -9226.11 ### -13059.84 ### -17867.37 -20250.13
43.66 1713.37 1115.58 1748.63 2349.16 3049.44 5114.81 7668.68

3,516.94 8,732.04 10,109.00 12,397.18 14,934.85 17,871.32 21,976.14 26,426.61

DCF Valuation

2021 2022 2023 2024

44,039.31 47,753.51 50,618.72 53,655.84

95 103 109 116
-4125 -4473 -4741 -5025

-10500 -9034 -6969 -7387

4110 3536 2728 2892
33,619.48 37,885.95 41,745.69 44,250.43

-4615.901977 -3971.46335 -3063.673338 -3247.4937386

4125 4473 4741 5025
-491.12747 501.18703 1677.3361 1777.97622

35.93 30.91 23.85 25.28

0 0 0 0
-19132 -20746 -21990 -23310
-85 -92 -97 -103
-3182 -3451 -3658 -3877
-95 -103 -109 -116
-22457.94 -24360.04 -25830.57 -27380.40
10670.41 14027.09 17592.45 18648.00

31,066.28 35,689.20 40,051.07 42,454.13

 HOME Income Statement Balance Sheet Cash Flows Assumption Sheet

Sales Forecasting
Sales growth rate in % of 2009 2010 2011 2012
Company NA 2.86% 27.04% 32.73%

Industry Sales Growth rate in 2009 2010 2011 2012

% NA 0.08% 14.78% 20.59%

2009 2010 2011 2012

GDP Growth rate in %
5.037 11.228 7.745 3.986

Calculation of Future Growth Rate of Industry

Indusry Growth in % 2014 2015 2016 2017

13.56% 12.59% 12.03% 11.88%

Where :
Y = Industry sales
M = SLOPE of equation
X = GDP Growth
C = INTERCEPT

2009 2010 2011 2012

Future Sales of Industry 67,646 67,700 77,706 93,703

Calculation of Future Growth Rate of Company Using EIC Analysis

2009 2010 2011 2012 2013

Company sales by "EIC"
Analysis 22,404 23,045 29,276 38,859 48,427

Market Capitalization 33.12% 34.04% 37.67% 41.47% 47.07%

 Market Capitalization Growth 0.92% 3.64% 3.80% 5.60%
in %

Expenses Forecast Based on Sales %

2009 2010 2011 2012 2013
1 Net Sales Growth 99.998% 99.992% 99.996% 99.999% 99.998%
2 Excise Duties % of Sales 0.01% 0.00% 0.00% 0.00% 0.00%
3 (a) Cost of materials consumed 0.24% 0.10% 0.06% 0.03% 0.05%
(b) power and fuel 0.73% 0.80% 0.82% 0.75% 0.78%
(c) Employee benefits expense 32.90% 34.21% 34.81% 36.29% 35.27%
(d) Other Manufacturing Exp 31.01% 27.98% 27.79% 27.22% 27.64%
(e)selling & Adm exp 5.44% 5.50% 4.08% 4.34% 0.00%
(f)Miscellaneous Exp 2.81% 2.48% 2.47% 2.07% 6.72%
(g)Other incomes -2.04% 0.79% 1.66% 6.91% 4.61%
(h)Deprication & Amortization 1.86% 2.04% 1.84% 1.77% 1.66%
(i)Extraordinary items -0.46% -0.06% 0.00% -0.33% 0.00%
(j)Tax % of EBT 6.76% 11.61% 12.99% 17.08% 18.57%
(k)Earnings B4 Appropriation 347.71% 291.04% 270.61% 250.19% 266.65%

Balance Sheet Forecast Based on Sales %

(L) NCL % Sales 0.18% 0.16% 0.14% 0.25% 0.34%
(m)CL % Sales 22.56% 31.59% 21.94% 23.95% 21.24%
(n)Fixed Assets % Sales 14.97% 16.06% 16.29% 14.90% 14.18%
(O)NCA % Sales 41.47% 50.32% 36.08% 29.54% 27.24%
(p)Investments % NCA 63.90% 68.08% 54.87% 49.56% 47.94%
(q)Total Assets % Sales 82.76% 97.35% 88.96% 88.16% 88.82%
(R)finance Cost % NCL 18.43% 26.69% 48.66% 17.04% 18.77%
(S)Dividend TAX 17.08% 16.80% 16.45% 16.30% 16.54%
(t)Equity dividend 8.39% 23.94% 13.38% 17.82% 12.63%
(u)Preferred dividend 0.04% 0.10% 0.05% 0.08% 0.06%
Assumption Sheet Beta Valuation Competators Cost of Equity DCF Valuation

2013
24.62%

The Sales Growth Rate of Company in the year 2013 is 24.62%

where the Industry Growth rate is Only 9.79%
2013
9.79%

2013 2014 2015 2016 2017 2018

5.676 6.23 6.632 6.861 6.922 6.965

2018 it can be calcualted by Regration formula

11.78% Y= mx + c

SLOPE -0.024288

INTERCEPT 0.2869586

2013 2014 2015 2016 2017 2018

102,876 116,831 131,538 147,365 164,877 184,299

2014 2015 2016 2017 2018

59,071 71,096 84,791 100,619 118,901

50.56% 54.05% 57.54% 61.03% 64.52%

3.49% 3.49% 3.49% 3.49% 3.49%
 HOME Income Statement Balance Sheet Cash Flows

Assumptions
S.noAssumption name Assumption tpye Manual
1 Sales Growth EIC Analysis
2 Market Capitalization Historical Avg 6%
6
3 Net Sales Growth Historical Avg 99%
4 Excise duties Historical Avg 1%
5 Expenses forecast
(a) Cost of materials consumed Historical Avg 7%
(b) power and fuel Historical Avg 5%
(c) Employee benefits expense Historical Avg 30%
(d) Other Manufacturing Exp Historical Avg 25%
(e)selling & Adm exp Historical Avg 5%
(f)Miscellaneous Exp Historical Avg 5%
(g)Other incomes Historical Avg 3%
(h)Deprication & Amortization Historical Avg
(i)Extraordinary items Latest Growth
(J)TAX % of EBT Historical Avg
(k)Earnings b4 Appropriation Historical Avg
6 Balance Sheet Forecast
(L)NCL % Sales Historical Avg
(m)CL % Sales Historical Avg
(n)Fixed Assets % Sales Historical Avg
(O)NCA % Sales Latest Growth
(P)Investments % NCA Historical Avg
(q)Total Assets % Sales Historical Avg
(R)finance cost % NCL Historical Avg
(S)Dividend Tax Historical Avg
(t)Equity dividend Historical Avg
(u)Preferred dividend Historical Avg
 Beta
Cash Flows Calculations Competators Cost of Equity DCF Valuation
Valuation

Value
Value Taken From Calculation Sheet Cell (H35)
3.49%

100.00%
0.00%

0.10%
0.78%
34.69%
28.33%
3.87%
3.31%
2.39%
1.83%
0.00%
13.40%
285.24%

0.21%
24.26% Changing the Assumption will directly
15.28% affect on FCFE Share Price
27.24%
56.87%
89.21%
25.92%
16.63%
15.23% Changing the Assumption will directly affect on
0.07% DDM Model Share Price
DCF Valuation
 PREVIOUS SHEET INDUSTRY ANALYSIS NEXT SHEET

Sales Turn over of the following companies

S.no Competitors name 2009 2010 2011 2012
1 Infosys 20,264.00 21,140.00 25,385.00 31,254.00
2 WIPRO 21,612.80 23,006.30 26,401.20 31,803.40
3 HCL 4,675.09 5,078.76 6,794.48 8,907.22
4 TECH MAHINDRA 4,357.80 4,483.80 4,965.50 5,243.00
5 ORACLE FINANCIAL 2,212.62 2,243.47 2,360.51 2,605.85
6 MIND TREE 1,012.57 1,233.25 1,509.00 1,915.20
7 MAHINDRA SATYAM 8,432.50 5,107.60 4,780.80 5,964.30
8 MPHASIS 3,405.02 3,770.09 3,404.13 3,420.84
9 NIIT TECH 502.07 493.58 729.28 827.46
10 POLARIS TECH 1,171.34 1,143.48 1,375.96 1,762.09

2009 2010 2011 2012

Sales of Industries
67,645.81 67,700.33 77,705.86 93,703.36

2009 2010 2011 2012

Sales Growth in %
NA 0.08% 14.78% 20.59%
NEXT SHEET

2013
36,765.00
33,517.30
8,907.22
6,001.89
2,937.70
2,361.80
6,001.89
3,420.84
1,108.30
1,853.99

2013
102,875.93

2013
9.79%
 HOME Balance Sheet Income Statement Cash Flows
1

SENSEX Market indicates of Last 5yrs Beta ValuatIon

Month Open High Low Close Returns Month
Oct-09 17186.2 17493.17 15805.2 15896.28 Oct-09
Nov-09 15838.63 17290.48 15330.56 16926.22 0.06479126 Nov-09
Dec-09 16947.46 17530.94 16577.78 17464.81 0.03181986 Dec-09
Jan-10 17473.45 17790.33 15982.08 16357.96 -0.063376 Jan-10
Feb-10 16339.32 16669.25 15651.99 16429.55 0.00437646 Feb-10
Mar-10 16438.45 17793.01 16438.45 17527.77 0.06684419 Mar-10
Apr-10 17555.04 18047.86 17276.8 17558.71 0.0017652 Apr-10
May-10 17536.86 17536.86 15960.15 16944.63 -0.034973 May-10
Jun-10 16942.82 17919.62 16318.39 17700.9 0.04463184 Jun-10
Jul-10 17679.34 18237.56 17395.58 17868.29 0.00945658 Jul-10
Aug-10 17911.31 18475.27 17819.99 17971.12 0.00575489 Aug-10
Sep-10 18027.12 20267.98 18027.12 20069.12 0.11674286 Sep-10
Oct-10 20094.1 20854.55 19768.96 20032.34 -0.0018327 Oct-10
Nov-10 20272.49 21108.64 18954.82 19521.25 -0.0255132 Nov-10
Dec-10 19529.99 20552.03 19074.57 20509.09 0.05060332 Dec-10
Jan-11 20621.61 20664.8 18038.48 18327.76 -0.1063592 Jan-11
Feb-11 18425.18 18690.97 17295.62 17823.4 -0.0275189 Feb-11
Mar-11 17982.28 19575.16 17792.17 19445.22 0.09099386 Mar-11
Apr-11 19463.11 19811.14 18976.19 19135.96 -0.0159042 Apr-11
May-11 19224.05 19253.87 17786.13 18503.28 -0.0330624 May-11
Jun-11 18527.12 18873.39 17314.38 18845.87 0.0185151 Jun-11
Jul-11 18974.96 19131.7 18131.86 18197.2 -0.0344197 Jul-11
Aug-11 18352.23 18440.07 15765.53 16676.75 -0.0835541 Aug-11
Sep-11 16963.67 17211.8 15801.01 16453.76 -0.0133713 Sep-11
Oct-11 16255.97 17908.13 15745.43 17705.01 0.07604645 Oct-11
Nov-11 17540.55 17702.26 15478.69 16123.46 -0.0893278 Nov-11
Dec-11 16555.93 17003.71 15135.86 15454.92 -0.0414638 Dec-11
Jan-12 15534.67 17258.97 15358.02 17193.55 0.11249686 Jan-12
Feb-12 17179.64 18523.78 17061.55 17752.68 0.03251975 Feb-12
Mar-12 17714.62 18040.69 16920.61 17404.2 -0.0196297 Mar-12
Apr-12 17429.96 17664.1 17010.16 17318.81 -0.0049063 Apr-12
May-12 17370.93 17432.33 15809.71 16218.53 -0.0635309 May-12
Jun-12 16217.48 17448.48 15748.98 17429.98 0.07469543 Jun-12
Jul-12 17438.68 17631.19 16598.48 17236.18 -0.0111188 Jul-12
Aug-12 17244.44 17972.54 17026.97 17429.56 0.01121942 Aug-12
Sep-12 17465.6 18869.94 17250.8 18762.74 0.0764896 Sep-12
Oct-12 18784.64 19137.29 18393.42 18505.38 -0.0137165 Oct-12
Nov-12 18487.9 19372.7 18255.69 19339.9 0.04509607 Nov-12
Dec-12 19342.83 19612.18 19149.03 19426.71 0.00448865 Dec-12
Jan-13 19513.45 20203.66 19508.93 19894.98 0.02410444 Jan-13
Feb-13 19907.21 19966.69 18793.97 18861.54 -0.0519448 Feb-13
Mar-13 18876.68 19754.66 18568.43 18835.77 -0.0013663 Mar-13
Apr-13 18890.81 19622.68 18144.22 19504.18 0.03548621 Apr-13
May-13 19459.33 20443.62 19451.26 19760.3 0.01313154 May-13
Jun-13 19859.22 19860.19 18467.16 19395.81 -0.0184456 Jun-13
Jul-13 19352.48 20351.06 19126.82 19345.7 -0.0025835 Jul-13
Aug-13 19443.29 19569.2 17448.71 18619.72 -0.0375267 Aug-13
Sep-13 18691.83 20739.69 18166.17 19379.77 0.04081963 Sep-13
Oct-13 19452.05 20323.77 19264.72 20272.91 0.0460862 Oct-13
 Calculation
h Flows Sheet Assumption Sheet Beta Valuation Cost of Equity DCF Valuation

TCS Share Prices of Last 5yrs

Open High Low Close Returns
618 657.9 556.65 628.3
Beta Value
636 711.65 601 688.4 0.09565494
703.4 757 677.05 750.25 0.08984602 Historical Beta 0.1624122625
754.8 829 696.5 736.2 -0.0187271
734.35 778.55 708.15 761.8 0.03477316
762 845.9 755 780.65 0.02474403
Latest Beta -0.1828750586
786.35 834.9 755.6 765.4 -0.019535
761.25 843 685.25 743.05 -0.0292004
743.05 794 730 751 0.01069915
750 859.8 725.75 839.8 0.11824234
843 885 828.55 843.75 0.0047035
842 960 835.1 926.95 0.09860741
927 1072.95 869 1052.9 0.13587572
1052.05 1108 998.95 1076 0.02193941
1064 1180 1048.4 1165.65 0.08331784
1167 1220 1087.8 1159.5 -0.005276
1165 1198.9 1055.9 1110.25 -0.0424752
1113 1198 1057.25 1183.9 0.06633641
1185 1246.95 1140 1165.65 -0.0154152
1170 1183.4 1108.1 1157.15 -0.0072921
1157 1205 1058 1184.2 0.0233764
1198 1205 1112.1 1137 -0.0398581
1142.4 1149.9 902 1042.4 -0.0832014
1073 1074.75 969 1037.3 -0.0048926
1020 1154 1015.3 1115.8 0.07567724
1108 1156 1041 1115.55 -0.0002241
1140 1196.9 1114.4 1160.65 0.04042849
1161 1209.9 1045.3 1132.4 -0.0243398
1129.4 1280.85 1108.25 1221.95 0.07907983
1223 1227 1111.8 1168.8 -0.0434961
1170 1250 1047.65 1246.6 0.066564
1242.1 1295.25 1194.1 1245.35 -0.0010027
1240 1287 1196.2 1277.45 0.02577589
1279 1284 1175.2 1243.65 -0.026459
1238.1 1388.8 1218.1 1343.75 0.08048888
1350 1439.8 1261.1 1295.9 -0.0356093
1295 1334.9 1055 1315.5 0.01512462
1314.9 1348 1256.05 1314 -0.0011403
1315 1322 1197 1255.85 -0.0442542
1266.95 1400 1255.3 1344.15 0.07031094
 1344 1525 1342.15 1517 0.12859428
1515.1 1597.6 1491 1575.75 0.03872775
1565 1575 1365 1378.4 -0.1252419
1373.5 1527.5 1373.5 1498.45 0.08709373
1504 1544.7 1381.05 1518.15 0.01314692
1512 1831.5 1465 1815.5 0.19586339
1810.05 2050 1695.2 2033.2 0.11991187
2020 2078.8 1894.05 1927.8 -0.0518395
1932 2098 1916.7 2090.85 0.08457828
Valuation

0.2
0
 Dash Board Income Statement Cash Flows Calculation Sheet Assumption Sheet
1
Cost of Equity Cost
Rf 7.50% Wd
Rm 15.50% kd
Rm - Rf 8% We
Beta(β) 0.16241226 ke

Formula:- Rf+β(Rm-Rf) Formula:-

Cost of Equity 8.80% WACC

Where:- Beta Assumption

Rf : Risk Free Asset
Rm : Market Risk Historical Beta
Beta : Systematic Risk Change the Beta
Wd : weight of debt 0.162412263
We : weight of Equity
Kd : cost of debt
Ke : cost of equity
Assumption Sheet Beta Valuation Balance Sheet DCF Valuation

Cost of Capital
0.50%
25.92%
99.50%
8.80%

(wd*kd + we*ke)

8.88%
 HOME Income Statement Balance Sheet

Dash Board Income Statement Balance Sheet Cash Flows Calculation Sheet
1

Disconted Cash
Latest Growth rate of sales = 18.17%
Long term Growth rate = 6%
Cost of Equity = 8.80%
Eternal Growth rate of Divident = 6%

1 Dividend Discount Model 2014 2015 2016

Years 1yr 2yr` 3yr
Dividends 6538 7869 9385
Sales Growth Rate 21.98% 20.36% 19.26%

Terminal Value (Yr 11 to Infinate as on Yr 10) 832,702

Present Value of (TV) ₹ 358,285

Present Value of Dividends 6,009 6,648 7,287

Total PV Of Dividends ₹ 84,187
Total Value of Equity ₹ 442,472

Calculated Share Price ₹ 2,260.74

2 Free Cash Flows Model 2014 2015 2016
Years Add: Cash Flows From 1yr 2yr` 3yr
FCFE Operations 8,732.04 10,109.00 12,397.18
Less: Total Fixed Investments
Add: Net Borrowings
FCFE

Terminal Value (TV)from Yr 11 to till infinate 1,516,599

Present Value of (TV) ₹ 599,769
PV of FCFE 8,026 8,540 9,626
Sum of the PV of FCFE ₹ 143,018.10
Total value of Equity ₹ 742,786.79

Calculated Share Price ₹ 3,795.15

Market Value as on
 Balance Sheet Cash Flows Assumption Sheet Beta Valuation Calculations Cost of Equity

Calculation Sheet Assumption Sheet Beta Valuation Cost of Equity Report Writing

Disconted Cash Flows (DCF) Valuation

Eternal Growth rate of FCFE = 6%
WACC = 8.88%
Cost of Equity 8.80%
Share Value as on 10/11/2012 Rs.2099.50 (BSE INDEX)

2017 2018 2019 2020 2021 2022 2023

4yr 5yr 6yr 7yr 8yr 9yr 10yr
11137 13160 15231 17257 19132 20746 21990
18.67% 18.17% 15.74% 13.30% 10.87% 8.43% 6.00%

7,948 8,632 9,183 9,563 9,744 9,712 9,462

2017 2018 2019 2020 2021 2022 2023

4yr 5yr 6yr 7yr 8yr 9yr 10yr
14,934.85 17,871.32 21,976.14 26,426.61 31,066.28 35,689.20 40,051.07

10,659 11,723 13,249 14,644 15,823 16,707 17,233

Market Value as on 10/11/2013 Rs.2099.50

 Cost of Equity

Report Writing

2024
INFINATE Yr
23310

2024
11yr
42,454.13

16,789
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