Hi Cheong,

It wont praticle to use that if the spread is huge.

We divide the 4.4% with the bond rate in order to adjust the 4.4% in graham time to the present. So, we need to use a rate that make sense in current context.

Do use the MY's corporate bond rate if you able to get it.

Look at the company quality - http://intelligentinvestor8.blogspot.com/2014/06/financial-statement-analysis-apollo.html

And think what will be the interest rate if a company with strong balance sheet raising money from debt market?

I will compare to the local Risk Free Rate.

It is our own judgement, how much risk premium you are willing to be paid for a 20yr Grade A Corporate Bond?

In today context, I won't go for 6%. It is too high if compare to the risk free rate.

I tend to play safe and use the higher option.

Hi cheongcy,

To make it simple, I just use the US bond rate. I'd rather be approximately right than precisely wrong.

Valuing a business is part art and part science; and there is no right or wrong.

If worst case happen, margin of safety will help if I perform any mistake in my calculations.

Hi Cheongcy,

This is MGS but not Corporate Bond.

Hi Cheongcy,

Yes. I am not sure how to locate the local bond rate.

You can refer to my post - http://intelligentinvestor8.blogspot.com/2014/08/when-should-we-click-buy-button.html

HI shinado, it is depend on the company quality and the MOS.

You can use a lower number if you want to have higher MOS or company quality is not good.

Hi GenghisHoe, I don't have a FB.

I do setup a blog - http://intelligentinvestor8.blogspot.com

Hi Mr. Chong,

I am compiling a check list - "when to buy? " http://intelligentinvestor8.blogspot.com/2014/08/when-should-we-click-buy-button.html

It will be great if you can review and comment

Hi inwest88 / NOBY / sbg3106,

Thanks for the compliment.

Mr. Chong is definitely a good teacher. I learn a lot from his online course.

Checkout what is the red flag on LONBISC's financial statement

http://intelligentinvestor8.blogspot.com/2014/05/red-flag-on-lonbisc.html

Does LONBISC generate cash from the business?
http://intelligentinvestor8.blogspot.com/2014/06/cash-flow-analysis-lonbisc.html

Buffett said "In the business world, the rearview mirror is always clearer than the windshield."

Do you want to risk your money on this company?

Hi Emperor,

You can refer to http://intelligentinvestor8.blogspot.com/2014/07/dcf-valuation-apollo-6432.html for how I get the cost of capital.

And, you can read http://intelligentinvestor8.blogspot.com/2014/07/earnings-power-valuation-epv.html for the detail EPV valuation

Capitalized Earnings = Normalized Earnings / Cost of Capital.

I won't.

hi sbg3106,I have shared the file on my previous post. It is the same template

hi nicholas1969, the 10% is not for year 2018. It is just the intrinsic value if I apply 10% discount rate.

hi sbg3106, ask yourself do you think the company able to growth its FCF on 3.35%?

You don't have to think of everything. It was Isaac Newton who said, 'I've seen a little more in the world because I stood on the shoulders of giants.' There is nothing wrong with standing on other people’s shoulders.

Nobody’s perfect. Don’t expect perfection from those you are making deals with or from yourself. Be willing to make mistakes now and then. Warren said, “I make plenty of mistakes and I’ll make plenty more mistakes, too. That’s part of the game. You’ve just got to make sure that the right things overcome the wrong ones.” - Warren Buffett

In my opinion, MOS is the core principle for value investing. And, Graham told us "Confronted with a challenge to distil the secret of sound investment into three words, we venture the motto, Margin of Safety."

Hi lindahui,

MOS stand for Margin of Safety.

What is Margin of Safety?

"A margin of safety is achieved when securities are purchased at prices sufficiently below underlying value to allow for human error, bad luck, or extreme volatility in a complex, unpredictable and rapidly changing world." - Seth Klarman

"The margin of safety is always dependent on the price paid. It will be large at one price, small at some higher price, nonexistent at some still higher price." - Benjamin Graham

Hi Mr. Chong and NOBY,

Mr. Market give some discount on this coutner. Take a look.

It is too bad that I have fully invested for the allocation to this counter.

http://klse.i3investor.com/servlets/stk/chart/8346.jsp

If you check on the records, AIRASIA able to achieve a very high ROE on pass few years (exclude year 2013). Based on the pass results, AIRASIA is a good company that able to create value to it's shareholder.

I am happy if AIRASIA spend money on CAPEX. It mean the management is working hard to create more value for the shareholder.

Mr. Koon, I have been follow your posts few months ago. Thank you very much for your sharings. In my opinion, you are not obliged to answer all questions posted. And, who are we to be so demanding?

I recalled that many peoples critized on cold eyed on his picks on Xin Quan, SOZO, MSC, etc... (http://klse.i3investor.com/blogs/kianweiaritcles/26629.jsp). During his speech (http://klse.i3investor.com/blogs/kianweiaritcles/26614.jsp), he mentioned that - "I am albe to make money in the share market by using my method. If you are following my method but not able to make money, who should you blame?"

Lets think about it. Cold Eyed and Mr. Koon make some mistakes on stock pick but why they able to survive and make profit from the market?

Mr. Koon have been making a lot of moneys in the share market. With his proven records, I believe there is a lot of things that we should learn from him. I suggest that we should be humble instead of 班门弄斧.

Hi Chief,

It is better I put the answer here and other members can aware on this too.

"You can key in 'incomelete data' to the template. But, it will show you a blank result if certain required data not provided. Do give a try. I do advise you to capture the data from annual report, and read the annual report first before you put your hard earn money to the market."

Hi DOROTHY10,

Mr. Chong is kcchongnz - http://klse.i3investor.com/servlets/cube/kcchongnz.jsp

I am following Jae Jun's post but I do not know him personally.

Hi aikwais,

Thanks you for your compliment. As mentioned in my previous post, most of the item in the template was based on Mr. Chong's course. You may want to consider to enroll to his online course if you are new on this field.

You have to key in the the data to the excel, you may refer to:-
http://intelligentinvestor8.blogspot.com/2014/06/financial-statement-analysts-template.html
and
http://intelligentinvestor8.blogspot.com/2014/06/analysis-template-v102-and-answer-to.html

And, I am using www.klse.my to retrieve the annual report. Do let me know if there is better source that can provide the financial data, I may able to built tools to perform auto analysis if such source is provided.

But, I would like to emphasis that we should read on the annual report to perform a more thorough analysis as the financial statement is only provide part of the information. Do read on the financial notes too (http://intelligentinvestor8.blogspot.com/2014/07/data-in-financial-notes.html)

Hi sleepyme,

You just have to click the link on my post to open the file.

Maybe you can give a try by using a newer browser.

HI chongkeatL1,

You are welcome. Do let me know if you find other issue on the template.

Most of the item in the template was build by me based on Mr. Chong's course. You may want to consider to enroll to his online course if you wish to learn more.

HI chongkeatL1,

Yes. You are right

HI chongkeatL1,

Thanks for pointed out. I believe you mean the E122 - Excess Cash.

Hi Chief,

It will be great. You may want to consider to post it here for sharing.

You can refer to http://klse.i3investor.com/blogs/kianweiaritcles/36923.jsp for the step.

Hi LiveStrong,

I have upload it to one drive and the link is in my post.

Hi Chief,

It have been included in Business Performance vs Price - Normalized graph at bottom left.

you are welcome.

if you interest to learn more, you may want to consider to join mr. chong's online investment course.

You can refer http://intelligentinvestor8.blogspot.com/2014/05/discounted-cash-flow-analysis-reverse.html for my notes on DCF.

Hi nicholas1969,

We need to review a company's quality and decide the discount rate. For growth rate, I will use the historical data and read some of the forecast report as a reference. And, I will determine the growth rate based on my own judgement with these inputs. But, most of the time I will play safe and use a lower growth rate in order to protect my capital.

AT, you are welcome

Hi nicholas1969,

I am using different discount rate to discount the whole cash flow but not 5% for 1st year and 14% for 10th year. This can show us what will be the intrinsic value based on different discount rate.

I am using a lower growth rate to give me a better margin of safety.

Hi ccs999,
You can refer to V-BGG worksheet.

Hi ccs999,

The excel was uploaded to Ms One Drive. You can refer to the post http://klse.i3investor.com/blogs/intelligent_investor_notes/55577.jsp for the hyperlink

There are some update on the V-DDM Sheet, please refer to v1.52
http://intelligentinvestor8.blogspot.com/2014/07/update-v-ddm-on-financial-statement.html

There are some update on the V-DDM Sheet, please refer to v1.52
http://intelligentinvestor8.blogspot.com/2014/07/update-v-ddm-on-financial-statement.html

Hi Ayam Tua, are you one of the member in the private group?

Hi Danny, If you follow Mr. Chong but can't make money; and most of the peoples able to make money (and the statistic show you that the pick is making money too.). Please think before you flame.

You might want to be open minded and learn from Mr. Chong. This is definitely benefit you.

There is so many risks and it is not easy to make money in bursa. Be humble and learn.
http://intelligentinvestor8.blogspot.com/2014/06/five-habits-of-highly-successful_537.html

Hi KinSoon, well say. But, please do not bet 200k on PTARAS if your total portfolio is 200k. We do not have crystal ball on hands and diversification is a good tools to reduce risk.

Hi Ayam Tua, you are welcome.

If you wish to learn more on the value investing, you might want to join Mr Chong's online class. I understand that he is doing a new class on July.

Spend some time and course fee on the course is definitely a good investment.

There are some update on the V-DDM Sheet, please refer to v1.51 http://intelligentinvestor8.blogspot.com/2014/07/update-v-asset-and-v-ddm-on-financial.html