PERSISTENT SYSTEMS
EQUITY RESEARCH - MODEL
DISCUSSION ON EQUITY RESEARCH MODEL - PERSISTENT SYSTEMS
Investment stocks
fundamental approach
decision should I invest in the stock at the CMP
value of company = Intrinsic Value > CMP more than 15%
Project Company
starting t = 0 does not start at t =0
life is finite life is infinite (going concern)
assumptions were given to us we have figure out the drivers and take assumptions
IMPORTANT SECTIONS OF AN ANNUAL REPORT --> INVESTMENT ANALYSIS
1 CHAIRMAN'S SPEECH VISION & MISSION
2 DIRECTOR'S REPORT OPERATIONAL EXCELLENCE
3 MANAGEMENT DISCUSSION & ANALYSIS (MDA) COMMENTARY ON LATEST RE
4 INDUSTRY REPORT DEMAND & SUPPLY OF THE S
5 FINANCIAL STATEMENT DATA (IS/BS/CFS)
Total Revenue = Price x Quantity
ANALYSIS OF MARUTI REVENUES
ASP (P)
Maruti x
Number of cars sold (Q)
ANALYSIS OF AIRTEL REVENUES
ARPU = MONTHLY BILL
MOBILE
SUBSCRIBERS
AIRTEL BROADBAND
DTH
ANALYSIS OF IT SERVICES REVENUES
HOSPITAL IN USA
WANTS SOFTWARE FOR MGMT.
PERSISTENT IS THE VENDOR TO BUILD THE SOFTWARE
NO SALEABLE INTELLECTUAL PROPERTY
SO CHARGE THE CLIENT FOR EFFORT
HOW TO MEASURE THE EFFORT
MAN DAYS OR MAN MONTHS OR MAN HOURS
METRIC TO REVENUE ESTIMATION
NO. OF MONTHS TOTAL TOTAL
SERVICES PROVIDED DEVELOPE OF EFFORT RATE PER MONTH REVENUE
AT RS EFFORT MONTHS $/MONTH (USD)
ONSITE = GDC 1 10 10 10000 100000
OFFSHORE = INDIA 10 10 100 1000 100000
200000
50
10,000,000
REVENUE MODEL - PERSISTENT SYSTEMS
GDC - BILLING RATE (USD/MONTH)
GDC GDC - MONTHS BILLED
SERVICES
PERSISTENT INDIA INDIA - BILLING RATE (USD/MONTH)
INDIA - MONTHS BILLED
IP LED
IP - BILLING RATE (USD/MONTH)
IP- MONTHS BILLED
PERFECT COMPETITION
ENTRY BARRIER LOW
INFLUENCE OF PERSISTENT ON BILLING RATE NOT THERE
VALUATION OF COMPANY
DISCOUNTED CASH FLOW VALUATION RELATIVE VALUATION
PRESENT VALUE OF FUTURE CASH FLOWS IS FIRM VALUE LAW OF ONE PRICE
BASED ON VALUATION RATIO
FREE CASH FLOW TO FIRM (FCFF) = THE AMOUNT OF CASH P/E, EV/REVENUE, P/S,P/BV
GENERATED FOR ALL STAKEHOLDERS OF FIRM
STAKEHOLDERS = DEBT + EQUITY FIND THE RATIOS FOR PEERS
THIS IS ALSO CALLED AS ENTERPRISE VALUE (EV)
EV = DEBT + EQUITY - CASH FIND THE INDUSTRY MEDIAN
25TH , 75TH PERCENTILE
FCFF = EBIT*(1-TAX) + D&A - PURCHASE OF ASSETS + CHG IN WC
USE THE INDUSTRY MEDIAN
DICOUNT RATE FOR FCFF IS WACC OR PERCENTILE VALUE
(CONSIDERING BOTH STAKEHOLDERS , DEBT & EQUITY) TO FIND TARGET PRICE OF OU
WACC = We * Ke + Wd * Kd
We = MARKET VALUE OF EQUITY / TOTAL CAPITAL
MARKET VALUE OF EQUITY = PRICE OF STOCK * NUMBER OF SHARES
Wd = 1 - We
Kd = INT RATE * (1 - TAX RATE)
Ke = Rf + BETA*(Rm - Rf) <=== CAPITAL ASSET PRICING MODEL (CAPM)
EV = PV OF ALL FCFF DISCOUTNED AT WACC
MATHEMAICALLY , EV WOULD BE
WE CAN ESTIMATE THE FCFF FOR NEXT 6 YEARS USING OUR FORECASTS
FOR THE REMAINING YEARS TILL INFINITE WE USE 2 STAGE BASED H-MODEL
OF VALUATION
THIS MODEL CONSIDERS THE BUSINESS LIFE CYCLE STAGES AND MODERATES THE
GROWTH RATE
STAGE -1 : LINEAR DECLINE IN GROWTH RATE OF PROFITS OR CASH FLOWS
STAGE -2 : TERMINAL VALUATION BASED ON GORDON GROWTH MODEL
GORDON GROWTH MODEL
PV = A/r
FROM EV WE CAN ESTIMATE THE EQUITY VALUE
AND THE INTRINSIC PRICE TO TAKE INVESTMENT DECISION
EQUITY VALUE = EV - DEBT + CASH
INTRINSIC PRICE = EQUITY VALUE / NUMBER OF SHARES
and take assumptions
ISION & MISSION
PERATIONAL EXCELLENCE
OMMENTARY ON LATEST RESULTS
EMAND & SUPPLY OF THE SECTOR
<== TOTAL REVENUE ($)
<== INR/USD
<== REVENUE IN INR MILLION
ELATIVE VALUATION
AW OF ONE PRICE
ASED ON VALUATION RATIOS
/E, EV/REVENUE, P/S,P/BV
IND THE RATIOS FOR PEERS
IND THE INDUSTRY MEDIAN OR
5TH , 75TH PERCENTILE
SE THE INDUSTRY MEDIAN
OR PERCENTILE VALUE
O FIND TARGET PRICE OF OUR CASE
REVENUE
DRIVERS
IS
COST DRIVERS
CFS
ASSET
SCHEDULE
BS
BALANCE SHEET
RATIO
HISTORICAL
DATA
ANNUAL
REPORT
ESTIMATES OF
CASH FLOW VALUATION
Intirinsic Price >
CMP
+15% BUY
FORECASTS INVESTMENT
DECISION
DCF
RELATIVE
VALUATION
Persistent Systems
Layout
(All numbers in INR Million, Except per share data)
(Red for assumptions, Blue for Acutal data and Black for Calculations)
Date Mar/13 Mar/14 Mar/15 Mar/16
Year 2013 - A 2014 - A 2015 - A 2016 - A
method-2 method-2
fcfe fcff
ke wacc
equity value enterprise value
intrinsic value equity value
intrinsic value
Mar/17 Mar/18 Mar/19 Mar/20 Mar/21 Mar/22 Mar/23 Mar/24
2017 - A 2018 - A 2019 - E 2020 - E 2021 - E 2022 - E 2023 - E 2024 - E
Revenue
1. GDC
2. India
3. IP Led
1. GDC 2. India
a. Person months billed a. Person months billed
b. Average revenue per person month b. Average revenue per person month
a. Person months billed a. Person months billed
i. Person months billable i. Person months billable
ii. Utilisation % ii. Utilisation %
i. Person months billable i. Person months billable
: Number of billable employees*12 : Number of billable employees*12
3. IP Led
a. Person months billed
b. Average revenue per person month
a. Person months billed
i. Person months billable
ii. Utilisation %
i. Person months billable
: Number of billable employees*12
As you have tried filling the missing values - you must have faced some difficulties
Overcoming these challenges are important as you will be required to do this kind of work in your job!
As we go along for the next 2 sessions, you can use this file - so that you can do your work and match it with your group!!
Following are the tasks you need to follow to complete the 4 steps which you must have memorised till now :)
Step 1 EBITDA Forecast
Step 2 EBIT Forecast
Step 3 PAT Forecast
Step 4 BS, CFS Forecast
Note: You will be required to take assumptions : Please discuss in your group and take similar assumptions
These assumptions can be changed later after the model is complete and everyone in one group has similar figures
Task 1 Sheet "Revenue Drivers" -> Try to complete the same after understanding Revenue Schema
Task 2 Sheet "Cost Drivers" -> Try to complete all operating expenses and do EBITDA Forecast
Task 3 Sheet "Asset Schedule" -> Try to complete the schedule and do EBIT Forecast
Task 4 As debt is negligible -> You can keep interest constant in Income Statement and debt constant in Balance sheet
So, you can get away without making a debt schedule in this model -> complete PAT Forecast
Task 5 Sheet "Balance Sheet" -> Keep Cash blank, Use asset schedule to link fixed assets, Use PAT to link equity (Rest o
Task 6 Create a new sheet using the sheet "LAYOUT" -> Name the new sheet "CFS" i.e. Cash Flow Statement
Task 7 Complete CFS and match the BS
Task 8 Think of working capital assumptions and change a few things in BS (Think!!)
Task 9 After task 8, BS will get mismatch -> Try to match it back by making changes in CFS
Task 10 Complete till Task 9 in this session, and leave DCF and Relative Valuation for next session
t with your group!!
imilar figures
nstant in Balance sheet
AT to link equity (Rest of the things keep constant for now)
ow Statement
Persistent Systems
Revenue Driver - Price * Quantity Method
(All numbers in INR Million, Except per share data)
(Red for assumptions, Blue for Acutal data and Black for Calculations)
Date Mar-13 Mar-14 Mar-15
Year 2013 - A 2014 - A 2015 - A
Revenue from Operations in INR Mn 12,945 16,692 18,913
Revenue By Delivery Centers
Global development Centers 18.2% 20.9% 24.8%
India 64.6% 61.1% 56.1%
IP Led 17.2% 18.0% 19.1%
Global development Centers
India
IP Led
Billed Person Months
GDC 3,294 3,980 5,113
India 37,882 40,053 40,981
IP Led 8,974 9,148 10,207
Average Revenue per Person Months
GDC
India
IP Led
Billable Person Months
GDC 3,718 4,585 5,754
India 51,823 57,506 58,493
IP Led 8,974 9,148 10,207
Utilisation rate
GDC
India
IP Led
Number of billable employees
GDC
India
IP Led
Addition in number of billable employees AVERAGE
GDC
India
IP Led
Other Income
Other Income
Cash BOP + Current Investments
Other income %
Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
2016 - A 2017 - A 2018 - A 2019 - E 2020 - E 2021 - E 2022 - E 2023 - E
23,123 28,784 30,337
28.0% 26.8% 32.0%
50.9% 45.2% 42.4%
21.1% 28.0% 25.6%
6,623 7,280 9,255
42,327 45,346 47,151
13,509 19,978 19,982
1.00
0.30
0.35
7,682 8,515 10,609
57,871 60,245 60,597
13,509 19,978 19,982
90.00%
75.00%
100.00%
115
150
185
Mar-24
2024 - E
Persistent Systems
Cost Drivers
(All numbers in INR Million, Except per share data)
(Red for assumptions, Blue for Acutal data and Black for Calculations)
Date Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
Year 2013 - A 2014 - A 2015 - A 2016 - A 2017 - A
Revenue from Operations
Employee Benefit expense
Cost of technical professionals
Other Expenses
Depreciation
Interest Expense
Tax Expense
Commonsize Analysis (As % of Revenue from Operations)
Employee Benefit expense
Cost of technical professionals
Other Expenses
Depreciation
Interest Expense
Tax Expense
Effective Tax Rate (Tax Expense/PBT)
Dividends Paid
Dividend Tax
Dividend Payout Ratio
Dividend Tax as % of Dividend Paid
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
2018 - A 2019 - E 2020 - E 2021 - E 2022 - E 2023 - E 2024 - E
Persistent Systems
Asset Schedule
(All numbers in INR Million, Except per share data)
(Red for assumptions, Blue for Acutal data and Black for Calculations)
Date Mar-13 Mar-14 Mar-15 Mar-16
Year 2013 - A 2014 - A 2015 - A 2016 - A
Property, Plant and Equipment
Other Intangible Assets
Total Fixed Assets
Depreciation & Amortisation
Depreciation & Amortisation Rate %
Purchase of Fixed Assets
Purchase of Fixed Assets as % Revenue from Operations
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
2017 - A 2018 - A 2019 - E 2020 - E 2021 - E 2022 - E 2023 - E 2024 - E
Persistent Systems
Income Statement
(All numbers in INR Million, Except per share data)
(Red for assumptions, Blue for Acutal data and Black for Calculations)
Date Mar/13 Mar/14 Mar/15 Mar/16 Mar/17
Year 2013 - A 2014 - A 2015 - A 2016 - A 2017 - A
Revenue from Operations 12,945 16,692 18,913 23,123 28,784
Other Income 286 310 938 773 958
Total Revenue 13,231 17,002 19,851 23,896 29,743
Employee Benefit expense 7,188 9,090 11,114 14,068 17,649
Cost of technical professionals 536 906 1,090 1,587 2,178
COGS 7,724 9,995 12,203 15,654 19,827
Gross Profit 5,507 7,006 7,647 8,242 9,916
Other Expenses 2,094 2,553 2,806 3,554 4,304
EBITDA 3,413 4,453 4,842 4,688 5,612
Depreciation 783 1,026 939 990 1,490
EBIT 2,630 3,427 3,903 3,698 4,122
Interest Expense 0 1 3 1 1
EBT 2,630 3,427 3,900 3,697 4,121
Exceptional Items - - - - (114)
PBT 2,630 3,427 3,900 3,697 4,007
Tax Expense 754 934 993 924 992
PAT 1,876 2,493 2,906 2,773 3,015
EPS
Basic 48.62 64.07 36.84 34.74 37.68
Diluted 46.90 31.16 36.33 34.66 37.68
Number of Shares
Basic 38.59 38.91 78.89 79.82 80.01
Diluted 40.00 80.00 80.00 80.01 80.01
Mar/18 Mar/19 Mar/20 Mar/21 Mar/22 Mar/23 Mar/24
2018 - A 2019 - E 2020 - E 2021 - E 2022 - E 2023 - E 2024 - E
30,337
1,191
31,528
18,316
3,181
21,497
10,031
4,153
5,878
1,585
4,293
1
4,293
-
4,293
1,062
3,231
40.39
40.39
79.99
79.99
Persistent Systems
Balance Sheet
(All numbers in INR Million, Except per share data)
(Red for assumptions, Blue for Acutal data and Black for Calculations)
Date Mar/13 Mar/14 Mar/15 Mar/16 Mar/17
Year 2013 - A 2014 - A 2015 - A 2016 - A 2017 - A
Property, Plant and Equipment 2,800 2,785 3,021 2,968 2,768
Capital work-in-progress 1,174 307 40 24 48
Goodwill - 23 24 78 76
Other Intangible assets 702 1,269 995 1,325 2,515
Intangible assets under development - - - 242 241
Investments 173 823 2,308 1,469 2,339
Loans 199 138 58 86 136
Other non-current financial assets - - 13 870 922
Deferred tax assets (net) 190 261 244 129 306
Other non-current assets 524 459 81 649 72
Total Non Current Assets 5,763 6,066 6,784 7,840 9,425
Investments 3,116 4,071 4,661 4,914 4,500
Trade receivables 2,451 3,028 3,586 4,275 4,754
Cash and Cash equivalents 561 957 987 1,400 1,461
Other bank balances - - 526 39 48
Loans 346 410 11 9 10
Other current financial Assets - - 909 1,764 2,316
Current tax assets (net) - - 20 153 94
Other current assets 434 902 397 803 855
Total Current Assets 6,908 9,368 11,097 13,358 14,039
Total Assets 12,671 15,434 17,881 21,199 23,464
Equity share capital 400 400 800 800 800
Other equity 9,783 11,823 13,901 15,778 18,193
Total Equity 10,183 12,223 14,701 16,578 18,993
Borrowings 14 32 26 27 22
Deferred payment liabilities 559 301 - - 20
Provisions 80 93 116 124 146
Deferred tax liabilities (net) - 1 3 - 111
Total Non Current Liabilities 653 426 145 151 298
Trade Payables 319 434 497 1,599 1,209
Deferred Payment Liabilities - - - 4 1
Other Financial liabilities - - 535 535 453
Other Current Liabilities 468 1,140 730 1,108 1,119
Provisions 1,048 1,211 1,274 1,224 1,391
Total Current Liabilities 1,835 2,785 3,036 4,469 4,173
Total Liabilities and Shareholders Equity 12,671 15,434 17,881 21,199 23,464
Checksum (ASSETS = LIABILITY + EQUITY) - - - - -
Balance Sheet Ratios
1 2 3 4
DSO 59.91 63.82 62.04 57.25
Payable Days 13.74 13.92 24.44 25.85
Debtors Turnover ratio 6.09 5.72 5.88 6.38
Daily Sales 27.38
Payable Turnover Ratio 26.56 26.22 14.93 14.12
Average Debtors
Debtors
Average Payale
Payable
Other Income as % of Investments & cash 8% 16% 9% 12%
Mar/18 Mar/19 Mar/20 Mar/21 Mar/22 Mar/23 Mar/24
2018 - A 2019 - E 2020 - E 2021 - E 2022 - E 2023 - E 2024 - E
2,581 - - - - - -
8
77
2,464
45
2,881
143
37
642
92
8,969
5,916
4,847
1,344
1,070
7
2,758
114
1,563
17,620
26,589
800
20,472
21,272
17
-
160
270
447
1,673
-
396
1,201
1,599
4,870
26,589
-
5
57.76
24.47
6.32
14.92
14%
Persistent Systems
Cash Flow Statement
(All numbers in INR Million, Except per share data)
(Red for assumptions, Blue for Acutal data and Black for Calculations)
Date Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
Year 2013 - A 2014 - A 2015 - A 2016 - A 2017 - A
Profit before tax 2,630 3,427 3,900 3,697 4,007
Adjustments for:
Interest income (93) (91) (117) (148) (145)
Finance costs 0 1 3 1 1
Dividend income (155) (150) (233) (227) (189)
Depreciation and amortization expense 783 1,026 939 990 1,490
Amortization of lease premium - - - 1 1
Unrealised exchange loss/ (gain) (net) 9 58 (25) 68 88
Change in foreign currency translation re 13 (34) (36) (37) (67)
Exchange loss/ (gain) on derivative contr (90) 20 (11) 1 (70)
Exchange (gain) / loss on translation of f (1) 19 (11) (8) (1)
Donations in kind - - - - 0
Bad debts 31 46 99 205 115
Provision for doubtful receivables (net) 94 27 (56) (196) 26
Employee stock compensation expenses 28 - 32 34 60
Provision for doubtful deposits and adva - 0 2 0 -
Provision for diminution in value of non - 0 - - 8
Remeasurements of the defined benefit liab - - - 223 (61)
Advances written off - 4 - 30 -
Excess provision in respect of earlier yea (2) (2) (6) (0) (3)
(Gain)/ loss on fair valuation of mutual f - - - 14 (191)
(Profit) on sale of investments (net) (13) (55) (85) (228) (94)
(Profit) on sale of fixed assets (net) (4) 3 (3) (9) (2)
Operating profit before working capital ch 3,229 4,299 4,393 4,410 4,973
Movements in working capital :
(Increase) / Decrease in non-current and (82) (112) (18) 176 (50)
Decrease / (Increase) in other non curren - - - (51) 5
(Increase) in other current financial asset - - - - (163)
(Increase) in other current assets (160) (344) (157) (1,205) (52)
(Increase) in trade receivables (609) (689) (576) (645) (688)
(Decrease) / Increase in trade payables and 130 501 202 924 (302)
Increase / (Decrease) in provisions 252 129 273 (57) 189
Working Capital Change (470) (514) (276) (857) (1,062)
Operating profit after working capital chan 2,759 3,785 4,117 3,553 3,912
Direct taxes paid = Tax Expense (596) (977) (1,001) (1,012) (1,048)
Net cash generated from operating activiti 2,163 2,808 3,116 2,541 2,864
Payment towards capital expenditure (inclu (1,156) (581) (957) (1,659) (2,176)
Proceeds from sale of fixed assets 4 3 3 12 7
Payment towards acquisition of subsidiarie - (32) - (307) -
Purchase of tax free bonds - - - (243) (514)
Proceeds from sale of tax free bonds - - - 456 654
Purchase of non-current investments (50) (651) (6) (73) -
Investments in mutual funds (10,908) (12,492) (15,451) (13,397) (10,789)
Proceeds from sale / maturity of mutual fu 9,846 11,591 13,702 14,023 10,472
Proceeds from sale of other current invest - - - 20 -
Investments in bank deposits having origin (520) (24) (15) (523) (10)
Investments in Deposit with financial instit (28) - - (300) (135)
Maturity of bank deposits having original 921 42 100 400 -
Inter corporate deposits refunded 50 7 0 0 0
Interest received 101 28 74 202 82
Dividends received 29 150 233 227 189
Net Cash (used in) investing activities (1,711) (1,958) (2,315) (1,162) (2,219)
(Repayment of) long term borrowings 8 18 13 (15) (5)
Interest paid - - (2) (0) (2)
Dividends paid (340) (440) (560) (1,040) (480)
Tax on dividend paid (55) (75) (107) (212) (98)
Net cash (used in) Financing activities (387) (497) (657) (1,266) (584)
Net Change in Cash 64 353 144 113 61
Cash BOP 433 499 833 988 1,401
Cash EOP 499 833 988 1,401 1,463
Cash acquired on Acquisition - - - 293 -
Effect of exchange differences 1 (19) 11 8 1
On unpaid dividend accounts 1 1 1 1 1
Cash From Balance Sheet #REF! #REF! #REF! #REF! #REF!
Cash In Deposits #REF! #REF! #REF! #REF! #REF!
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
2018 - A 2019 - E 2020 - E 2021 - E 2022 - E 2023 - E 2024 - E
4,293
(162)
1
(171)
1,585
1
(124)
(28)
77
(101)
0
184
(151)
4
27
-
148
(18)
(24)
19
(187)
(2)
5,370
(1)
(3)
72
(696)
157
306
222
56
5,426
(1,214)
4,212
(655)
3 IMMATERIAL
(408) CAN'T BE PREDICTED
(595) ALREADY PART OF TOTAL CASH ,
-
-
(15,502) ALREADY PART OF TOTAL CASH ,
14,290 ALREADY PART OF TOTAL CASH ,
-
(326)
(595)
42
0
101
171
(3,474)
(5)
(2)
(800)
(150)
(956)
(218)
1,463
1,345
-
101
#REF!
#REF!
PART OF TOTAL CASH , DOESN'T MATTER
PART OF TOTAL CASH , DOESN'T MATTER
PART OF TOTAL CASH , DOESN'T MATTER
Persistent Systems
Valuation-DCF
(All numbers in INR Million, Except per share data)
(Red for assumptions, Blue for Acutal data and Black for Calculations)
Valuation Assumptions Data Sources
g (World Economic Growth) 5.0% Paper 99 , Goldman Sachs Publication 2003
Rf 8.0% 10 Year GOI Bond Yield
Rm 16.0% 10 Year CAGR% - NIFTY
Beta 0.75 in.reuters.com
CMP 650 in.reuters.com
Valuation Data
Total Debt (Long Term Borrowings) (2018)
Cash & Cash Equivalents (2018)
Number of Diluted Shares (2019)
Tax Rate (2019)
Interest Expense Rate (2019) 10%
MV of Equity
Total Debt
Total Capital
WACC
We
Wd
Ke CAPM RF+ BETA *(RM-RF)
Kd INTEREST * (1-TAX)
WACC WD*KD+WE*KE <----- HIGHER WACC LOWER VALUE
FCFF & Target Price
Explicit Forecast Period
2019 2020 2021 2022 2023 2024
EBIT * (1-Tax Rate)
Dep
Purchase of Assets
Changes in Working Capital
FCFF
1 2 3 4 5
% Growth in Post Tax EBIT
As % Of Post Tax EBIT
Dep
Purchase of Assets
Changes in Working Capital
FCFF
Terminal Value
Total Cash Flow
Enterprise Value (EV)
Less: Debt
Add: Cash
Equity Value
Target Price #DIV/0!
% Returns Rating
% Returns < 5% SELL
>5%, < 15% HOLD
Rating SELL >15% BUY
Sensitivity of Target Price to Terminal growth % and WACC
Terminal Growth %
#DIV/0! 4.0% 4.3% 4.5% 4.8% 5.0%
13.0%
13.3%
13.5%
13.8%
WACC
14.0%
14.3%
14.5%
14.8%
15.0%
ication 2003
LOWER VALUE
Terminal
Linear Decline Phase
Yr
2025 2026 2027 2028 2029 2030
6 7 8 9 10
0.00% 0.00% 0.00% 0.00%
minal Growth %
5.3% 5.5% 5.8% 6.0%
0.00%
Persistent Systems
Valuation-Relative
(All numbers in INR Million, Except per share data)
(Red for assumptions, Blue for Acutal data and Black for Calculations)
PEER DATA
Capitalization
Share Number
Company Name Ticker Debt
Price of Shares
MindTree MINT.NS 975 164 3,009
Hexaware HEXT.NS 353 297 -
Mphasis MBFL.NS 1,040 193 3,899
Cyient CYIE.NS 608 113 2,410
Maximum
75th Percentile
Median
25th Percentile
Minimum
Persistent Systems
Valuation Statistics
MindTree
Hexaware
Mphasis
Cyient
Maximum
75th Percentile
Median
25th Percentile
Minimum
Persistent Systems
Capitalization Revenue EPS
Equity Enterprise
Cash TTM 1-Y FWD 2-Y FWD TTM 1-Y FWD 2-Y FWD
Value Value
Mar-18 Mar-19 Mar-20 Mar-18 Mar-19 Mar-20
3,289 159,803 159,523 54,628 70,145 79,599 34.00 45.75 51.38
1,033 104,743 103,710 46,478 54,208 61,116 19.00 21.70 24.72
7,067 200,855 197,687 63,775 77,586 88,933 43.00 56.41 63.85
9,807 68,443 61,046 39,139 46,893 52,713 36.00 39.45 47.69
Enterprise Value / Revenue P / E Multiple
Mar-18 Mar-19 Mar-20 Mar-18 Mar-19 Mar-20
