tag:blogger.com,1999:blog-7944902213075756335.post8184770937915257955..comments2024-03-28T23:00:40.055+08:00Comments on A Singaporean Stocks Investor (ASSI): How much is QAF Limited worth using DCF?AK71http://www.blogger.com/profile/16832145412062954289noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-7944902213075756335.post-37805976321635614962017-03-01T20:22:26.549+08:002017-03-01T20:22:26.549+08:00Hi Ben,
Yup. I think the calculator is showing Di...Hi Ben,<br /><br />Yup. I think the calculator is showing Discounted Earning Method. Basically you need to use current eps and estimate the future earning by certain %. By applying a discounted % to the future earnings; due to inflation and other reasons, you discount it back to current earnings to estimate the intrinsic value of "now". I am getting a value of $1 by projecting a 5% EKhttps://www.blogger.com/profile/09468987131033799328noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-81502329948142712202017-03-01T10:11:37.046+08:002017-03-01T10:11:37.046+08:00Hi Ben,
I am sure there is a purist's approac...Hi Ben,<br /><br />I am sure there is a purist's approach to DCF, like with many other things. Of course, there are other approaches as well which give us plenty of room for discussion.<br /><br />The reason why I don't usually use DCF is because it can be quite subjective. Depending on the assumptions we decide to make, we will get different fair values.<br /><br />I think I have managedAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-79006432786216991652017-03-01T06:03:31.041+08:002017-03-01T06:03:31.041+08:00Hi AK,
I really enjoy reading your blog - please ...Hi AK,<br /><br />I really enjoy reading your blog - please keep up the great work.<br /><br />I was under the impression that free cash flow is usually used for DCF calculations, and not EPS. I haven't done a comparison for QAF, but it would be interesting to see if the same or similar valuation is reached if free cash flow is used.<br /><br />As for Charlie's comment above, I don'tBenhttps://www.blogger.com/profile/03508640545436312261noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-9423830070721133862017-02-28T23:41:02.430+08:002017-02-28T23:41:02.430+08:00Hi Charlie,
Thanks for sharing your opinion. :)Hi Charlie,<br /><br />Thanks for sharing your opinion. :)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-38334464087281703302017-02-28T23:00:45.625+08:002017-02-28T23:00:45.625+08:00Hi Pat,
I could probably guess at the reason but ...Hi Pat,<br /><br />I could probably guess at the reason but I don't know if it is the reason. So, I shan't bother. I will say that it is anyone's guess. ;)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-42397273296380235152017-02-28T22:58:56.273+08:002017-02-28T22:58:56.273+08:00For DCF, the discount rate used should be based on...For DCF, the discount rate used should be based on the expected rate of return for the investment you are considering. The riskier the investment the higher the discount rate should be to factor in the risk premium. Thus it would not make sense to discount at the risk free rate. The traditional way is to use the capm model but you can also set your own discount rate based on your perception of CharlieKhttps://www.blogger.com/profile/05313104574555502422noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-36497251853367461862017-02-28T22:54:22.202+08:002017-02-28T22:54:22.202+08:00Hi AK,
Probably a very amateur question but why d...Hi AK,<br /><br />Probably a very amateur question but why did QAF dropped so much within these 2 days?<br /><br />Thanks!<br />Pat<br />wanchai30https://www.blogger.com/profile/12484836889465553637noreply@blogger.com