Good article and thanks for the sharing. I once used (RDCFA) for my stock valuation to evaluate how much market value the stock for the past 5 years(I look retrospectively) and use the calculated discount rate as a common yardstick to see if one's an overvalued/undervalued stock. However, from your article it makes a clearer picture for me that the current market valuation of the stock(1.91) reflects the future expectations of investors in this share but not the historical expectations of investors.
Posted by donfollowblindly > May 3, 2015 09:35 PM | Report Abuse RM1.91 now RM1.79 lose 12sen or 6.3% loss in 2weeks.
The article seems to be discussion how to estimate free cash flow, how to estimate discount rate, and do a discount cash flow analysis and reversed discount cash flow analysis, using Elsoft as an example.
Why do you talk about Elsoft's price two weeks ago and now? Anything interesting in investing in a two weeks period? What is your point?
Btw, do you have anything to comment on the estimation of discount rate, future free cash flow etc in the article, I mean constructive criticisms which you would like to share with everyone here?
Or the only thing you can mutter is price, price one hour ago, one day ago, or two weeks ago? So superficial knowledge you have ah?
Hi KC, Thanks a ton for the analysis !!! just a quick question, where you obtained the 426,568 which was added to the PV of TV to get the total PV as $499,181 ?
Posted by jomalay > Dec 5, 2015 02:29 PM | Report Abuse Hi KC, Thanks a ton for the analysis !!! just a quick question, where you obtained the 426,568 which was added to the PV of TV to get the total PV as $499,181 ? Thanks in advance !!! Love reading your stuff ! Jo
426568 thousand is the present value of the terminal value at end of yea 5 discounted at 10%.
PV of TV = 686991/(1+10%)^5 =426568
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Posted by johnny cash > 2015-04-17 21:09 | Report Abuse
Good write up, thanks