KC,

I must admit your answer on Pintaras' business outlook is underwhelming. It seems to me that you lack understanding of Pintaras business fundamentals. You dont even understand the overall industry. Anyway, one man's meat is another man's poison. I say good luck with your fundamental value investing.

KC,

I wish to add. Your breakdown of Pintaras cashflow and valuation is indeed commendable. It serves as a good education for aspiring investors. I must thank you on behalf of all learning fundamental investors.

However, one thing that is inherent in every investment analysis is the analysis of risk. To me, your educational article is incomplete. Although past financial performance is a solid base for predicting future cashflow, it is by no means the ultimate grail to precise valuation derivation.

For this, I recommend you to watch a video by Aswath Damodaran, a valuation professor from Stamford University about his recent investment in Vale that did not end well. The video link titled "No happy ending? My Vale Journey" is available here https://www.youtube.com/watch?v=O69Rnb_lESs

Damodaran laid out his investment thought process articulately in this video. One of the most striking mistake that Damodaran made throughout the whole investment process is his disregard or lack of awareness about Vale's future profitability and the risks surrounding the business. And throughout the video, viewers could see Damodaran revising his valuation of Vale with a lower and lower FCF.

KC, your analysis of Pintaras fundamental valuation is as good as flawless. But what I am interested is your thoughts about Pintaras business outlook as a whole and the dynamics of the construction business that are qualitative in nature.

KC,

Would you mind to share your views regarding the outlook/future profitability of Pintaras Jaya?

Do you think that Pintaras is able to maintain its FCF of RM 40+ million a year in the next few years?

If Pintaras FCF is halved to RM 20 million, should we put a new valuation on it?