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Foresight Valuation of Asian Paints
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P&L / Balance Sheet Items
2008200920102011201220132014201520162017Beyond 2017
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Sales₹4,407.23₹5,463.90₹6,680.94₹7,722.30₹9,598.33₹10,938.61₹13,413.84₹14,182.81₹14,271.49₹15,290.20₹15,748.91
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Sales Growth23.98%22.27%15.59%24.29%13.96%22.63%5.73%0.63%7.14%3.00%
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OPM14.92%12.31%18.50%17.23%15.74%15.88%14.86%15.62%19.09%19.81%12.30%
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Expenses₹3,749.87₹4,791.20₹5,445.26₹6,391.43₹8,087.15₹9,201.22₹11,420.14₹11,967.49₹11,546.45₹12,260.53₹13,812.08
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Operating Profit₹657.36₹672.70₹1,235.68₹1,330.87₹1,511.18₹1,737.39₹1,993.70₹2,215.32₹2,725.04₹3,029.67₹1,936.83
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Tax Rate30.94%29.34%30.19%28.43%28.69%28.53%28.67%29.32%30.99%31.29%25.00%
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Tax₹203.37₹197.39₹373.11₹378.39₹433.50₹495.69₹571.51₹649.54₹844.49₹947.98₹484.21
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NOPAT₹453.99₹475.31₹862.57₹952.48₹1,077.68₹1,241.70₹1,422.19₹1,565.78₹1,880.55₹2,081.69₹1,452.62
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Depreciation % Sales1.34%1.36%1.25%1.46%1.26%1.41%1.83%1.87%1.93%2.22%1.20%
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Depreciation₹59.17₹74.38₹83.56₹113.13₹121.13₹154.60₹245.66₹265.92₹275.58₹338.84₹188.38
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 Equity Share Capital ₹95.92₹95.92₹95.92₹95.92₹95.92₹95.92₹95.92₹95.92₹95.92₹95.92
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 Reserves ₹886.45₹1,107.25₹1,614.06₹2,091.50₹2,652.58₹3,288.37₹3,943.30₹4,646.44₹6,429.63₹7,507.68
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 Borrowings ₹275.21₹308.62₹229.23₹233.43₹341.11₹250.96₹249.15₹418.17₹323.29₹560.34
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 Cash & Bank ₹110.71₹210.37₹105.83₹626.23₹624.31₹736.69₹229.00₹204.39₹424.20₹801.21
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 Reinvestment ₹154.55₹531.96-₹38.76₹670.68₹433.26₹1,160.81₹896.77₹1,468.50₹938.09₹341.79
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 Total Capital Invested ₹1,301.42₹1,833.38₹1,794.62₹2,465.30₹2,898.56₹4,059.37₹4,956.14₹6,424.64₹7,362.73₹7,704.52
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 Owner's Earnings ₹395.14₹414.17₹1,104.37₹528.13₹963.04₹507.04₹934.93₹687.63₹1,482.44₹1,299.20
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Risk-free Rate (2008)8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%8.50%
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PV (Owner's Earnings)₹364.18₹351.82₹864.62₹381.09₹640.47₹310.79₹528.17₹358.03₹711.39₹10,447.62
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Equity Shares Outstanding95.9295.9295.9295.9295.9295.9295.9295.9295.9295.92
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PV (Owner's Earnings) per Share3.803.679.013.976.683.245.513.737.42108.92
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Earnings per Share4.274.158.718.7910.3111.6112.7114.5418.1920.22
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Price-to-Earnings28.4420.6723.6129.5932.6640.4141.6955.5447.9353.26
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Value (2008)₹153.08The Foresight Valuation of Asian Paints reveals that, on 2008, the stock should have traded at a 35.88 Price-to-Earnings Ratio. On 2008, it was trading at a Price-to-Earnings Ratio of 28.44.
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Value/Earnings (2008)35.88
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Price (2008)₹121.31
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Price/Earnings (2008)28.44
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