Posted by Pak Lah > 2014-06-12 15:00 | Report Abuse

Kcchongnz, thanks for your above efforts. Wow, intrinsic value of RM6.50 though it was worked out with the conservative parameters. Can we use the "intrinsic value calculator" in this website? http://www.moneychimp.com/articles/valuation/buffett_calc.htm I adopt the variables you suggested, i.e. EPS = RM0.31, Growth for the next 3 years at 15%, Subsequently 5%, Confidence Margin = 77.5%?, Discount Rate = 10%, press the "calculate button", I get RM6.50. Is this calculator applicable? Please advise. Thanks

Posted by kcchongnz > 2014-06-12 15:43 | Report Abuse

Pak Lah,

The computation part is easy and most of them will give you the same results if you use the same data and assumptions. That is mathematics.

So the important thing are the data and assumptions you use. Assumptions are yeah assumptions. Are they realistic? That is the question and that is an art.

Notice I use quite high growth assumption for the next three years of 15% which I seldom do. But knowing the near term future prospects of Pintaras now, I think that assumption is not too liberal.

Posted by Pak Lah > 2014-06-12 16:17 | Report Abuse

Thanks kcchongnz for the explanation.

Sop, ptaras has got RM330mil book order which must be realised in the next 12~18 months. As per the recent report in the star paper, the machineries they invested years ago are now fully amortised/depreciated, and their bottom line is set to surge as a result. I'm as upbeat as kcchongnz for ptaras.

Posted by cy1988 > 2014-06-14 19:30 | Report Abuse

hii...kc chong...u said that pintaras have 5m net capital expenses is a assumption or the figure from AR?if from AR,where u get the figure?

Posted by kcchongnz > 2014-06-14 19:52 | Report Abuse

I was just basing on the past capital expenses and depreciation and made an assumption that the net capex, or capex less depreciation is 5m a year in the future. Capex is purchasing of property, plant and equipment in the cash flow from investing activities.