dreamer85

dreamer85 | Joined since 2013-02-28

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2013-03-06 17:10 | Report Abuse

bro sephiroth , any other similiar pick?

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2013-02-28 16:09 | Report Abuse

from kcchongnz
What is the value of Prestariang? It depends mainly on its growth expectation.
Prestariang made 33.64 m with a revenue of 118.5 m last year, a net profit margin of 30%. A discount cash flows analysis on its owners’ earnings (refer to Buffet’s definition) with the following data and assumptions.
Growth of 15% for the next 5 years, and 3% subsequently.
Discount rate 10%, i.e. 6% risk premium over the long-term MGS rate of 4%
ROE at stable growth at 12%
Net capital expenses at 3m per year

The discount cash flows analysis of the owners’ earnings yield an intrinsic value of 2.80, a margin of safety of whopping 59% over its present price of 1.14. Is the growth assumption of 15% for the next 5 years too optimistic? What about 10% growth rate? It will yield an intrinsic value of 2.32, or still a comfortable MOS of 51%. In actual fact, using a reverse discount cash flows analysis, the market is pricing Prestariang with an assumption of negative growth of 5% for ever. Is this logical, or is there an opportunity to profit from investing in Prestariang now?

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2013-02-28 09:08 | Report Abuse

when is the exdate?