Posted by Jay > 2016-08-13 20:57 | Report Abuse

while DCF is the ultimate method for fundamentalist, its real world application is limited. this is bcos it's extremely sensitive to inputs (growth rate, discount rate, FCF), just tweak it by a small amount and you will be surprised by how much your value could change. so it is more suited for concession companies where FCF can be estimated with reasonable reliability. besides, if you want to do DCF, ideally you should also reverse certain one-off items which won't recur in the future. e.g. Gadang has one JV with Hatten in recent years, after which Gadang may not have similar piece of land for JV. just my two cents

Posted by Bizfuneng > 2016-08-13 21:57 | Report Abuse

Jay, you may be rite but what other alternative options that are available which can approx the intrinsic value of a company?

Posted by pisanggoreng > 2016-08-13 22:14 | Report Abuse

This jv still have at least 3 more year to contribute profit . Very strong and stable for the coming 3 years . So I feel this portion shouldn't be considered one off and be omitted in the calculation. Otherwise the value derived doesn't truly reflect the near future value . This is just my 2 sen view

Posted by pisanggoreng > 2016-08-13 22:23 | Report Abuse

Biz,

If you use absolute pe or graham , the value would be more than 4 .00
Don't believe you try

Posted by TRV > 2016-08-15 00:11 | Report Abuse

@Jay : Thank you for you input. Yes. You need to understand the business to be able to do that. Regarding the Capital City JV, they have yet to booked all the profit from the JV.

@Bizfuneng : I will be posting other valuation method for Gadang.

@pisanggoreng : Thanks for your input :)

Posted by TRV > 2016-08-17 19:10 | Report Abuse

http://klse.i3investor.com/blogs/TRV/102360.jsp

Benjamin Graham Formula Valuation for GADANG