Posted by johnny cash > 2015-04-17 21:09 | Report Abuse

Good write up, thanks

Posted by Dean > 2015-04-18 14:34 | Report Abuse

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 > 2015-05-03 21:35 | Report Abuse

RM1.91 now RM1.79 lose 12sen or 6.3% loss in 2weeks.

Posted by kcchongnz > 2015-05-04 11:53 | Report Abuse

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?

Posted by Kai Yee Tan > 2015-05-10 10:23 | Report Abuse

Hi, KC...May I know how u find the value for the Reinvestments? Thanks.

Posted by kcchongnz > 2015-05-10 10:45 | Report Abuse

Posted by Kai Yee Tan > May 10, 2015 10:23 AM | Report Abuse
Hi, KC...May I know how u find the value for the Reinvestments? Thanks.


Reinvestment rate is estimated from sustainable growth and return on capital as shown in the article.

Posted by Kai Yee Tan > 2015-05-10 19:41 | Report Abuse

Thx for reply KC ^^ .Btw may i know the way to calculate the value of "Reinvestment" in Table 1 and 2 above? I am sincere to learn from u.

Posted by jomalay > 2015-12-05 14:29 | 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

Posted by kcchongnz > 2015-12-05 17:44 | Report Abuse

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