Cheers to all Homeritz shareholder, below is my ealier posting, still far from instrinsic value :)
Discount Cash Flow Model 1 Valuation on HOMERIZ 8/4/2014
Table 6.1: Assumptions Current stock price $0.81 Share outstanding (Mil) 200,000 This year FCF (avg last 2 years) $18,295 Next year's FCF (mil) $19,210 Growth for the next 5 and 10 years 5.0% 3% Teminal growth rate, g 1.00% Discount rate, R 10.0%
Table 6.2: DCFA PV of FCFF of core operations $257,000 Non-operating cash $34,710 Investment in Properties Nil Investment in Associates Nil Debts ($2,671) PV of FCFE $289,039 Less minority interest ($462) 0.16% FCFE $288,577 Number of shares 200000 FCF per share $1.44 MOS 44%
Intrinsic Value of Homeritz is RM1.44. Potential gain of 78%!
Anyone knows why homey jump up today? any good news? Sometimes felt like i couldnt participate in enjoying this moment, i bought avg 0.326. It pays 3.75c divy, so for me its like 11.5% divy, so good, what should i do?
divhunter, gone up 7-8c today is very tempting for me to dispose, and thanks for your advice, i will keep it for the dividends, no change in the fundamentals, so no need to think of selling now, haha
miketyu, i'm using average fcf for last 2 years. PV of FCFF is $257,000, add up with additional cash of$34,710 and mius debt 2671, so PV of FCFE is $289039
I calculate the PV of cash flow until year 10 with this formula FCFn*(1+g)+.... Terminal FCF with this formula CFn(1+g)/(R-g). These calculation is abit complicated. i can send you my spead sheet if you want. Between, i learn all this from Kcchongnz course.
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....
awangngah
67 posts
Posted by awangngah > 2014-09-18 15:11 | Report Abuse
It's a breakout