REDFY (Rediff.com India) Net-Net Working Capital: $-0.07 (As of Sep. 2015)

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What is Rediff.com India Net-Net Working Capital?

Rediff.com India REDFY Net-Net Working Capital is $-0.07 as of Sep. 2015.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Rediff.com India's Net-Net Working Capital for the quarter that ended in Sep. 2015 was $-0.07.

The industry rank for Rediff.com India's Net-Net Working Capital or its related term are showing as below:

REDFY's Price-to-Net-Net-Working-Capital is not ranked *
in the Interactive Media industry.
Industry Median: 4.615
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Rediff.com India  (OTCPK:REDFY) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.


Rediff.com India Net-Net Working Capital Related Terms


Rediff.com India Net-Net Working Capital Historical Data

* Premium members only.

The historical data trend for Rediff.com India's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Rediff.com India Net-Net Working Capital Chart

Rediff.com India Annual Data
Trend Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.18 0.78 0.54 0.44 0.09

Rediff.com India Quarterly Data
Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
Net-Net Working Capital Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.09 0.00 -0.07 0.00

REDFY vs LIVC, FPTA, CXKJ: Net-Net Working Capital Comparison

For the Internet Content & Information subindustry, Rediff.com India's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Rediff.com India Price-to-Net-Net-Working-Capital vs Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Rediff.com India's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Rediff.com India's Price-to-Net-Net-Working-Capital falls into.



Rediff.com India Net-Net Working Capital Calculation

Rediff.com India's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Mar. 2015 is calculated as

Net-Net Working Capital(A: Mar. 2015 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(8.295+0.75 * 2.937+0.5 * 0-7.989
-0-0)/27.590
=0.09

Rediff.com India's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2015 is calculated as

Net-Net Working Capital(Q: Sep. 2015 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(6.85+0.75 * 1.98+0.5 * 0-10.19
-0-0)/27.590
=-0.07

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.

What does a Net-Net Working Capital of $-0.07 mean?
Rediff.com India (REDFY) has a Net-Net Working Capital of $-0.07 as of Sep. 2015. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Rediff.com India
Is Rediff.com India's Net-Net Working Capital too high?
Rediff.com India's current Net-Net Working Capital is $-0.07.
How does Rediff.com India's Net-Net Working Capital compare to LIVC and FPTA?
Rediff.com India's Net-Net Working Capital of $-0.07 can be compared against companies in the Interactive Media industry. The industry median Net-Net Working Capital is 4.62. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for an Interactive Media company?
The median Net-Net Working Capital among Interactive Media companies is 4.62, based on 302 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Rediff.com India For the Interactive Media industry, the median Net-Net Working Capital is 4.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rediff.com India's current Net-Net Working Capital is $-0.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rediff.com India stock overvalued right now?
Rediff.com India (REDFY) has a current Net-Net Working Capital of $-0.07. The current Net-Net Working Capital is $-0.07. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Rediff.com India (REDFY), the current Net-Net Working Capital is $-0.07 as of Sep. 2015. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Rediff.com India Business Description

Address Junction of Tilak Road and 1st Gaothan Lane, Level 10, Seasons Riddhi Siddhi, Santacruz West, Mumbai, MH, IND, 400054
Rediff.com India Ltd is engaged in the business of providing Software as a Service (SaaS) including email and related services, news and information services, and enterprise email solutions. These services are delivered across various platforms such as PCs, tablets, and a wide range of mobile devices. The company operates in a single operating segment of providing Software as a Service(SaaS). It generates revenue from the sale of its services.