Company Analysis

Analysis Factors

• 3 CAGR for the following

  • Top Line/Sales

  • Bottom Line/Profit

  • EBITDA

• Examples

  • Example-1

  • Sales: 40% EBITDA: 30% PAT: 20%

  • Sales Vs EBITDA: Means Opex is growing at higher rate (say 50%) which brings down EBITDA

  • EDITDA Vs PAT: Depreciation or Interest payment is growing at higher rate. High Interest payment means Debt is rising

• 3 Important Ratios to check

  • Debt to Equity

  • Price to Earnings ratio

  • ROE

• Cashflows

  • Operating Cash Flows

  • Free Cash Flow : Operating Cash Flow - CapEx Investment

• TBD