E is equity and is also net assets used by the company. The higher ROE, the better is the business profitability relative to the resources it has accessed to.
because i listen the cold eye speech record on internet. He mentioned the higher ROE is a top pick for selecting a potential stock to gain reasonable profit, but need to conclude all analysis like cash flow, PE, DY and NTA?
ROE, free cash flow, PE, DY, NTA and many other yardsticks are important in determining intrinsic value of a company. The lower that value is compared to the current market price, the bigger of margin of safety you get if you buy in. Free cash flow here is one for equity holder which is profit after tax + depreciation and amortisation - capex +/- working captial changes.
pity petty boy don't post, simple as that. it's World Wide Web, u expect everyone to like yr post, think as u?! there will be no share market, no need election if everyone think one way. especially in a public forum, cannot take criticism? u think it is negative criticism but first of all who r u to judge? someone else may like it.
best is, pity petty taufu character don't post. cold-eye swim in the sea of shares market that long, he says what's best in his knowledge, u shoot as u like, but there is great number of ppl like him very much. I thank him for Tambun recommendation :D :D :D
how to calculate net gearing...wct for example, from the analysis of some back, the net gearing for 2012 is 45.5% and that seem to be very high...if the gearing is high how can wct consider as a fundamentally strong company?
Hey iafx, it looks like you have great respect for Cold Eye. Me too. In fact I have started a thread to honour him titled "The 5 rules of Cold Eye". I have been analysing stocks using Cold Eye's 5 rules, or yardsticks to evaluate if a stock is worth investing for the purpose of sharing with others. Why don't you join us for the good of many people here? Analyze stocks using our sifu's yardsticks and post and share with others. Hey we all respect Cold Eye and believe what he says man.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
liew kimguan
268 posts
Posted by liew kimguan > 2013-03-17 16:22 | Report Abuse
楼上的大大,我有问题想向你请教, ROE 高的话, 是不是一味着公司的赚钱的本领很强, 比如DiGi, ROE 88%, cash flow 1bil, but PE high 28....