tag:blogger.com,1999:blog-5068456380497643051.post4620372413255798212..comments2023-08-21T03:13:58.189-07:00Comments on Value Investing-Growing My Money Tree: Intrinsic value - How much does it worth?Green Teahttp://www.blogger.com/profile/10743621056383711568noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-5068456380497643051.post-14137908876201127462015-09-22T21:35:13.608-07:002015-09-22T21:35:13.608-07:00Thanks for sharing...Thanks for sharing...Anonymoushttps://www.blogger.com/profile/12124561139234008747noreply@blogger.comtag:blogger.com,1999:blog-5068456380497643051.post-60213083103965700762014-11-25T03:26:37.361-08:002014-11-25T03:26:37.361-08:00sound interesting as it seems combine both FA and ...sound interesting as it seems combine both FA and TA.. wish you can write an article on it.. I prefer to use ev/ebit to get the earning yeild but PE is more popular in malaysia..<br /><br />ya.. it is difficult to find good bargain at the moment.. perhaps a major correction can help it.. Mhttps://www.blogger.com/profile/13734854812174156928noreply@blogger.comtag:blogger.com,1999:blog-5068456380497643051.post-50257270770241655772014-11-25T01:56:47.360-08:002014-11-25T01:56:47.360-08:00Beside, EPV I am using Earnings Yield (Which is ac...Beside, EPV I am using Earnings Yield (Which is actually inverse PE). I have learnt this from Equities Tracker. Comparing the current EY against its historical EY std deviation band works for me. However, with the whole market running up, pretty difficult to find any stock that meets this valuation.Green Teahttps://www.blogger.com/profile/10743621056383711568noreply@blogger.comtag:blogger.com,1999:blog-5068456380497643051.post-62705009107674755352014-11-24T02:21:27.166-08:002014-11-24T02:21:27.166-08:00Hi Green Tea,
Ya, I think I'm using EPV oper...Hi Green Tea, <br /><br />Ya, I think I'm using EPV operating business / asset.. <br /><br />Besides EPV, I'm also using discount cash flow, discount dividend, EV/Ebit, ncav, PE, etc.. generally, EPV will give most conservative IV..<br /><br />what method you are using except EPV? looks forward to see you writing more about these valuation method.. Mhttps://www.blogger.com/profile/13734854812174156928noreply@blogger.comtag:blogger.com,1999:blog-5068456380497643051.post-18453387079665464352014-11-24T01:13:07.804-08:002014-11-24T01:13:07.804-08:00Hi HorseField,
Yes, it would be bias to the '...Hi HorseField,<br /> Yes, it would be bias to the 'old school' economies of brick and mortar. Techno would be valued lower. i had decided to accepted this. <br />I remeber reaing somewhere, The author did present that 3 diffrent EPVs, EPV operating business, EPV company and EPV equity. with EPV company he adds excess cash and real estate. This seem to be what you have suggested.<br /><br />what other valuation method are you using? if you don't mind sharing..<br />Green Teahttps://www.blogger.com/profile/10743621056383711568noreply@blogger.comtag:blogger.com,1999:blog-5068456380497643051.post-61729950426293302632014-11-20T21:37:54.701-08:002014-11-20T21:37:54.701-08:00appreciate your reply.
i think the net asset you ...appreciate your reply.<br /><br />i think the net asset you mentioned is the alternate form of NCAV by apply discount on both fixed and current asset.. I consider it as asset base valuation.. <br /><br />However, epv is kind of earning base valuation by examine the earning from its fixed and also current asset.. <br /><br />if you added the liquidated asset into EPV to arrive the IV, it will be double count; i.e. earning power of asset + adjusted book value of asset.. it will be too conservative for heavy leverage/light asset firm or too generous for net cash/valuable asset firm (double count) by using the approach.. <br /><br />Personally, I will add excess cash & valuable non operating asset less minority interest and convertible bond into epv to arrive IV.. just my thought.. what is your opinion ?Mhttps://www.blogger.com/profile/13734854812174156928noreply@blogger.comtag:blogger.com,1999:blog-5068456380497643051.post-390302555835007132014-11-20T20:05:21.406-08:002014-11-20T20:05:21.406-08:00HI Horsefield,
In general, To calculate Net asset ...HI Horsefield,<br />In general, To calculate Net asset for liquidation, I would remove or discount certain items from the assets which normally are difficult to be converted to cash in the event of liquidation. eg: remove all goodwill figures, discount 50% of stocks, 30% of receivables and etc. The amount to reduce very much depends on the company and nature of business. If lets say the bulk of the stock are commodities like wood or precious metal which can be kept and resold easily, then the reduction amount is lower. However if it is like Padini, the stock is finish goods and might be difficult to resell, then i would take a bigger discount. Finally this adjusted asset figure is minus with total liabilities.<br /><br />If you refer to the example of WD40 in chapter 6, he calculates IV as earnings capability + Net cash. So EPV tells us the ability of the company to make earnings. Hence, I am incline to value a company by its earning capabilities + its liquidated net asset value. <br /><br />Green Teahttps://www.blogger.com/profile/10743621056383711568noreply@blogger.comtag:blogger.com,1999:blog-5068456380497643051.post-45373787452442415072014-11-20T04:38:42.401-08:002014-11-20T04:38:42.401-08:00hi Green Tea,
how you compute the net asset for l...hi Green Tea, <br />how you compute the net asset for liquidation ? is NTA? <br /><br />IV is value of the fixed asset and also growth asset.. since the EPV is compute the value of asset without expecting any growth, would it be double count if u add the net asset for liquidation ?Mhttps://www.blogger.com/profile/13734854812174156928noreply@blogger.com