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.

 

 

S&P Global Inc. : Analysis of revenue and intrinsic value of shares using Free Cashflow to Equity

S&P GLOBAL INC. is https://www.spglobal.com/en a provider of Financial intelligence solutions.

S&P Global Inc. operations consist of Five Businesses: S&P Global Market Intelligence, S&P Global Ratings, S&P Global commodity Insights, S&P Global Mobility and S&P Dow Jones Indices. S&P Global Inc. was founded in 1860 and is headquartered in New York.

 

Shareholder Return: During the three years ended December 31,2023 S&P Global Inc. has returned approximately $18.2 Billion to the shareholders through a combination of share purchases and quarterly dividends.

S&P Global Inc. Common stock trades on New York Stock exchanges under the symbol SPGI.

 

Crisil Limited https://www.crisil.com/ is an Indian Analytical company providing ratings, research and advisory services and is a subsidiary of S&P Global Inc.

 

Revenue analysis of S&P Global Inc. for the last three years

Revenue mix in US$ Millions	2023	2022	2021
Market Intelligence	4376	3811	2185
Ratings	3332	3050	4097
Commodity Insights	1946	1685	1012
Mobility	1484	1142
Indices	1403	1339	1149
Engineering Solutions	133	323
Inter segment elimination	(177)	(169)	(146)
Total Revenue	12,497	11,181	8,297

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FCFE Details of S&P Global Inc. shown below, US$ in millions, except per share data

 

Year	Value	FCFE or Terminal Value	Present Value at 15.51%
0	FCFE0	3671	3671
1	FCFE1	3857	3178
2	FCFE2	4129	2891
3	FCFE3	4500	2679
4	FCFE4	4993	2528
5	FCFE5	5639	2429
5	Terminal Value (TV5)	253,739	17,376

Intrinsic value of S&P Global Inc.	$140,769
Market cap of S&P Global Inc.	$160.354 Billion
Intrinsic value of S&P Global Inc. common stock (per share)	$452.34
Current share price on 12/07/2024	$516.77

 

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 S&P Global Inc. Common stock (β)	1.18
Required rate of return on S&P Global Inc.. Common Stock (r) Calculation : Rf + β(E(RM)- (Rf) = 4.36% +1.18[13.81% - 4.36%]	15.5%

 

FCFE Growth rate Forecast

S&P Global Inc. H-Model

Year	Value	Growth Rate
1	g1 (PRAT Model)	5.08%
2	g2 (Linear Interpolation)	7.04%
3	g3 (Linear Interpolation)	9%
4	g4 (Linear Interpolation)	10.96%
5	g5 (Single stage model)	12.93%

 

 

 

 

 

2023 Ratio Calculations

Retention rate	60.35%
Dividend yield	0.53%
Operating Margin	32%
Profit margin	23.15%
Current Ratio	0.84
Asset turnover	0.21
Financial Leverage	1.76
Return on Asset	4.77%
Return on Equity	8.43%
EPS	8.23
PE Ratio	62.79
Price to Sales ratio	12.83

 

 

 

 

 

 

Sources : Form 10K of S&P Global Inc. for the fiscal year 2023 https://investor.spglobal.com/sec-filings-reports/annual-reports/default.aspx , 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.