Free Cash Flow (FCF) is the money a company has left over after it pays for all its expenses and any investments it needs to make to keep the company running smoothly.
Think of it like your personal budget at home: after you pay for your necessities, like rent and groceries, and set aside money for future needs, like saving for a car or home repairs, the cash you have left is what you're free to spend or save as you wish.
Why is FCF important?
It's a sign of a company's health and its ability to do things like grow its business, pay dividends to shareholders, or reduce debt.
Flexibility: Companies with more FCF can make big moves without having to borrow money or ask for more investment, giving them the freedom to grow or tackle new projects on their terms.
Rewards for Investors: When a company has extra cash, it can decide to give some back to its investors through dividends or by buying back shares, which can increase the value of the remaining shares.
A Healthy Sign: Regularly having more cash coming in than going out shows that a company is doing well, making smart decisions, and earning more than it spends.
According to analysts, ITC price target is 497.87 INR with a max estimate of 585.00 INR and a min estimate of 435.00 INR. Check if this forecast comes true in a year, meanwhile watch ITC LTD stock price chart and keep track of the current situation with ITC news and stock market news.
Simply put, the fact that ITC has more cash than debt is arguably a good indication that it can manage its debt safely. Fortunately, ITC grew its EBIT by 7.3% in the last year, making that debt load look even more manageable.
Is ITC owned by Tata? No, India Tobacco Company, and finally truncated to just ITC, the 110-year-old conglomerate is 29.4% owned by British American Tobacco Plc.
Intrinsic Value. The intrinsic value of one ITC stock under the Base Case scenario is 268.39 INR. Compared to the current market price of 436.2 INR, ITC Ltd is Overvalued by 38%.
ITC Limited, a multinational conglomerate headquartered in Kolkata, India, reported a revenue of nearly 623 billion Indian rupees in fiscal year 2022. Apart from its FMCG range, ITC also owns hotels, agri, information technology, packaging, and paperboard businesses.
ITC Ltd. has an average target of 507.79. The consensus estimate represents an upside of 16.41% from the last price of 436.20. View 27 reports from 9 analysts offering long-term price targets for ITC Ltd..
Its consumer business, supported by strong brands and cash flows from the cigarette business, has grown significantly over the past two decades. Additionally, ITC's agri-business and digital initiatives have contributed to its growth.
Introduction: My name is Chrissy Homenick, I am a tender, funny, determined, tender, glorious, fancy, enthusiastic person who loves writing and wants to share my knowledge and understanding with you.
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