Ally Financial Inc. :Overview of Business and Intrinsic Value of shares

 

 

Ally Financial Inc. is a Financial service company with $196.6 billion in assets. Primary businesses of Ally Financial Inc. are Dealer Financial services, which is composed of Automotive Finance and insurance operations, Mortgage Finance and Corporate Finance.

The company serves customers through a full range of online banking services, securities brokerage and investment advisory services.

 

Ally Financial Inc. incorporated in Delaware and headquartered at Ally Detroit Center in Detroit, Michigan.

 

 

FCFE Details of Ally Financial Inc. shown below, US$ in millions, except per share data

Year	Value	FCFE or Terminal Value	Present Value at 17.49%
0	FCFE0	1083	1083
1	FCFE1	1124	922
2	FCFE2	1178	815
3	FCFE3	1245	727
4	FCFE4	1327	654
5	FCFE5	1427	593
5	Terminal Value (TV5)	15413	4793

Intrinsic value of Ally Financial Inc.	$11678 Million
Market cap of Ally Financial Inc.	$11.7 Billion
Intrinsic value of Ally Financial Inc. common stock (per share)	$38
Current share price on 02/07/2024	$38.30

 

Required rate of Return

Assumptions

Rate of return on LT Treasury Composite(Rf)	4.36%
Expected rate of return on market portfolio(E(RM)	13.81%
Systematic risk of Ally Financial Inc. Common stock (β)	0.95
Required rate of return on Ally Financial Inc. Common Stock (r) Calculation : Rf + β(E(RM)- (Rf) = 4.36% +1.39[13.81% - 4.36%]	17.49%

 

 

 

 

 

 

FCFE Growth rate Forecast

Ally Financial Inc. H-Model

Year	Value	Growth Rate
1	g1 (PRAT Model)	3.85%
2	g2 (Linear Interpolation)	4.77%
3	g3 (Linear Interpolation)	5.69%
4	g4 (Linear Interpolation)	6.61%
5	g5 (Single stage model)	7.53%

 

Financial year 2023 Ratio Calculations & Financial Data

Dividend yield	2.34%
Profit margin	12.44%
CET1 Capital Ratio	9.4%
Total Assets	196.4 B
Total Deposits	154.7 B
Book Value per share	$ 46
Return on Equity	8.3%
EPS	3.05
PE Ratio	12.56

 

 

 

 

 

 

 

 

Sources : Form 10K of Ally Financial Inc. for the fiscal year 2023 https://www.ally.com/about/investor/annual-reports/ , https://www.stock-analysis-on.net/ , https://finance.yahoo.com , https://companiesmarketcap.com/

 

 

 

 

Disclosures

This report is based on information obtained in good faith from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments.

 

 

THE WALT DISNEY COMPANY :Overview of Business and Intrinsic Value of shares

 

 

THE WALT DISNEY COMPANY, together with its subsidiaries, is a diversified worldwide entertainment company with operations in three segments: Entertainment, Sports and Experiences.

Listed on New York Stock Exchange THE WALT DISNEY COMPANY with ticker symbol DIS and Headquartered at the Walt Disney Studios, California.

 

Revenue for the fiscal year 2023 increased by 7% and reached to $88.9 billion and net income attributable to Disney decreased to $2.4 billion compared to $3.1 billion in the prior year.

 

FCFE Details of THE WALT DISNEY COMPANY, shown below, US$ in millions, except per share data

Year	Value	FCFE or Terminal Value	Present Value at 17.59%
0	FCFE0	4769	4769
1	FCFE1	4922	4158
2	FCFE2	5223	3742
3	FCFE3	5693	3461
4	FCFE4	6370	3289
5	FCFE5	7312	3209
5	Terminal Value (TV5)	324095	22628

Intrinsic value of THE WALT DISNEY COMPANY	$166781 Million
Market cap of THE WALT DISNEY COMPANY	$195.726 Billion
Intrinsic value of THE WALT DISNEY COMPANY. common stock (per share)	$91.94
Current share price on 01/13/2025	$108.08

 

Required rate of Return

Assumptions

Rate of return on LT Treasury Composite(Rf)	4.36%
Expected rate of return on market portfolio(E(RM)	13.81%
Systematic risk of THE WALT DISNEY COMPANY, Common stock (β)	1.4
Required rate of return on THE WALT DISNEY COMPANY, Common Stock (r) Calculation : Rf + β(E(RM)- (Rf) = 4.36% +1.4[13.81% - 4.36%]	17.59%

 

 

 

 

 

 

FCFE Growth rate Forecast

THE WALT DISNEY COMPANY, H-Model

Year	Value	Growth Rate
1	g1 (PRAT Model)	3.22%
2	g2 (Linear Interpolation)	6.11%
3	g3 (Linear Interpolation)	9.00%
4	g4 (Linear Interpolation)	11.89%
5	g5 (Single stage model)	14.79%

 

Financial year 2023 Ratio Calculations

Retention rate	100%
Profit margin	3.81%
Asset turnover	0.43
Financial Leverage	1.98
Return on Asset	1.64%
Current Ratio	1.05
Return on Equity	3.26%
EPS	1.29
PE Ratio	83.78

 

 

 

 

 

 

 

 

Sources : Form 10K of THE WALT DISNEY COMPANY, for the fiscal year 2023 https://thewaltdisneycompany.com/investor-relations/ , https://www.stock-analysis-on.net/ , https://finance.yahoo.com , https://companiesmarketcap.com/

 

 

 

 

Disclosures

This report is based on information obtained in good faith from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments.

 

 

Miller Industries Inc. Overview of Business and Intrinsic Value of shares

 

 

MILLER INDUSTRIES, INC. a Tennessee Corporation, is the Largest Manufacturer of Towing and Recovery equipment.

Listed on New York Stock Exchange Miller Industries has a total of four manufacturing facilities in the United States, one in England, and one in France.

 

Miller Industries Inc. has reported total revenue of US$1153 Million and Net income of US$58 Million during the fiscal year 2023.

 

 

 

FCFE Details of Miller Industries, Inc. shown below, US$ in millions, except per share data

Year	Value	FCFE or Terminal Value	Present Value at 13.33%
0	FCFE0	73	73
1	FCFE1	83	64
2	FCFE2	95	65
3	FCFE3	109	66
4	FCFE4	124	67
5	FCFE5	140	65
5	Terminal Value (TV5)	2172	401

Intrinsic value of Miller Industries, Inc.	$1563
Market cap of Miller Industries, Inc.	$63.82 Billion
Intrinsic value of Miller Industries, Inc. common stock (per share)	$136.54
Current share price on 12/30/2024	$65.17

 

Required rate of Return

Assumptions

Rate of return on LT Treasury Composite(Rf)	4.36%
Expected rate of return on market portfolio(E(RM)	13.81%
Systematic risk of Miller Industries, Inc.. Common stock (β)	0.95
Required rate of return on Miller Industries, Inc.. Common Stock (r) Calculation : Rf + β(E(RM)- (Rf) = 4.36% +0.95[13.81% - 4.36%]	13.33%

 

 

 

 

 

 

FCFE Growth rate Forecast

Miller Industries, Inc. H-Model

Year	Value	Growth Rate
1	g1 (PRAT Model)	14.88%
2	g2 (Linear Interpolation)	14.45%
3	g3 (Linear Interpolation)	14.02%
4	g4 (Linear Interpolation)	13.59%
5	g5 (Single stage model)	13.17%

 

Financial year 2023-24 Ratio Calculations

Retention rate	85.77%
Dividend yield	1.17%
Profit margin	5.03%
Asset turnover	1.78
Financial Leverage	1.86
Return on Asset	8.96%
Return on Equity	16.71%
EPS	5.1
PE Ratio	12.77

 

 

 

 

 

 

 

 

Sources : Form 10K of Miller Industries, Inc. for the fiscal year 2023 https://www.millerind.com/investors/reports-proxies , https://www.stock-analysis-on.net/ , https://finance.yahoo.com , https://companiesmarketcap.com/

 

 

 

 

Disclosures

This report is based on information obtained in good faith from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments.

 

 

HDFC Asset Management Company Ltd. : Analysis of Intrinsic Value of shares using Free Cashflow to Equity

HDFC Asset Management Company Ltd is https://www.hdfcfund.com/ offering Fund Manager services.

HDFC AMC is powered by purpose of contributing prosperity through their mission to be wealth creator for every Indian.

HDFC Bank (Largest Private sector Bank in India) owns 52.55% of shares in HDFC Asset Management Company LTD.

 

 

FCFE Details of HDFC AMC Ltd. shown below, Indian Rupees in Crores, except per share data

Year	Value	FCFE or Terminal Value	Present Value at 11.85%
0	FCFE0	2475	2475
1	FCFE1	2796	2213
2	FCFE2	3152	2236
3	FCFE3	3543	2253
4	FCFE4	3973	2264
5	FCFE5	4444	2270
5	Terminal Value (TV5)	73745	13710

Intrinsic value of HDFC Asset Management Company Ltd.	Rs.87456 Cr
Market cap of HDFC Asset Management Company Ltd.	Rs.91091 Cr
Intrinsic value of HDFC Asset Management Company Ltd. common stock (per share)	Rs.4096
Current share price on 20/12/2024	Rs.4262

 

Required rate of Return

Assumptions

Rate of return on LT Treasury Composite(Rf)	7.3%
Expected rate of return on market portfolio(E(RM)	14%
Systematic risk of HDFC Asset Management Company Ltd. Common stock (β)	0.68
Required rate of return on HDFC Asset Management Company Ltd.. Common Stock (r) Calculation : Rf + β(E(RM)- (Rf) = 7.3% +0.68[14% - 7.3%]	11.86%

 

FCFE Growth rate Forecast

HDFC Asset Management Company Ltd. H-Model

Year	Value	Growth Rate
1	g1 (PRAT Model)	13%
2	g2 (Linear Interpolation)	12.71%
3	g3 (Linear Interpolation)	12.42%
4	g4 (Linear Interpolation)	12.13%
5	g5 (Single stage model)	11.84%

 

 

 

 

 

Financial year 2023-24 Ratio Calculations

Retention rate	47.27%
Dividend yield	1.24%
Profit margin	61.39%
Asset turnover	0.418
Financial Leverage	1.06
Return on Asset	25.71%
Return on Equity	27.45%
EPS	91
PE Ratio	46.8
Price to Sales ratio	28.76

 

 

 

 

 

 

Sources : HDFC Asset Management Company Ltd. for the fiscal year 2023-24 https://www.hdfcfund.com/about-us/financial-information/annual-reports , https://www.stock-analysis-on.net/ , https://finance.yahoo.com , https://companiesmarketcap.com/

 

 

 

 

 

 

 

 

 

 

 

Disclosures

This report is based on information obtained in good faith from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments.