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Siddharth Education Services (BOM:540736) Free Cash Flow : ₹4.66 Mil (TTM As of Mar. 2020)


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What is Siddharth Education Services Free Cash Flow?

Siddharth Education Services's total free cash flow for the six months ended in Mar. 2020 was ₹4.66 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Mar. 2020 was ₹4.66 Mil.

Siddharth Education Services's Free Cash Flow per Share for the six months ended in Mar. 2020 was ₹0.40. Its free cash flow per share for the trailing twelve months (TTM) ended in Mar. 2020 was ₹0.40.

Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Free Cash Flow Growth Rate using Free Cash Flow per Share data.


Siddharth Education Services Free Cash Flow Historical Data

The historical data trend for Siddharth Education Services's Free Cash Flow 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.

* Premium members only.

Siddharth Education Services Free Cash Flow Chart

Siddharth Education Services Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20
Free Cash Flow
-15.05 11.27 - 111.35 4.66

Siddharth Education Services Semi-Annual Data
Mar16 Mar17 Mar18 Mar19 Mar20
Free Cash Flow -15.05 11.27 - 111.35 4.66

Siddharth Education Services Free Cash Flow Calculation

Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.

Siddharth Education Services's Free Cash Flow for the fiscal year that ended in Mar. 2020 is calculated as

Free Cash Flow (A: Mar. 2020 )=Cash Flow from Operations+Capital Expenditure
=4.661+0
=4.66

Siddharth Education Services's Free Cash Flow for the quarter that ended in Mar. 2020 is calculated as

Free Cash Flow (Q: Mar. 2020 )=Cash Flow from Operations+Capital Expenditure
=4.661+0
=4.66

For stock reported annually, GuruFocus uses latest annual data as the TTM data. Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2020 was ₹4.66 Mil.

* 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.


Siddharth Education Services  (BOM:540736) Free Cash Flow Explanation

Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.

In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.

This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over seven years. The reason we use seven years is because research shows that seven years is the length of the typical business cycle.

Therefore, as of Mar20, Siddharth Education Services's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Mar20)=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=0/14.75+0
=0.00 %

* 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.


Be Aware

Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.


Siddharth Education Services Free Cash Flow Related Terms

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Siddharth Education Services Business Description

Traded in Other Exchanges
N/A
Address
101, First Floor, Chirag Arcade, E. R. ROAD, Behind Nagrik Stores, Near Ashok Cinema, Thane, MH, IND, 400 601
Siddharth Education Services Ltd is engaged in providing tutorial coaching services for students of professional courses. The company offers tutorial services to C.S., C.A., and C.M.A under the brand name of Siddharth Academy. It is also engaged in the farming business. The company generates its revenue from Education Fees, Farming Activities, and Online Education Service.

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