tag:blogger.com,1999:blog-3276688108456391559.post6437496513404239793..comments2024-02-27T13:41:46.698+08:00Comments on SG Young Investment: Review of Select group's first half 2014 financial report - The F&B business in SingaporeSGYIhttp://www.blogger.com/profile/09445517891969740960noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-3276688108456391559.post-46986267956640459432014-08-26T09:19:01.462+08:002014-08-26T09:19:01.462+08:00Hi Kyith,
20% is indeed too optimistic. Their his...Hi Kyith,<br /><br />20% is indeed too optimistic. Their historical growth rate is about 10% so probably that will be a better figure. Only the overseas expansion if succesful will lead to higher growth rate. I was just listing out the possible scenarios and the valuations for each scenarios. We have to decide for ourselves whether it is a good price or not. SGYIhttps://www.blogger.com/profile/09445517891969740960noreply@blogger.comtag:blogger.com,1999:blog-3276688108456391559.post-34991833226862346542014-08-26T09:11:28.177+08:002014-08-26T09:11:28.177+08:00Hi,
The intrinsic value is calculated using the d...Hi,<br /><br />The intrinsic value is calculated using the discounted earnings model. Basically, we take the EPS and discount it to today's value. For the 1st year, it'll be 0.40 x (1÷(1+0.4)▲1). 2nd year it'll be 0.48 x (1÷(1+0.4)▲2). The 0.48 is derived assuming a cagr of 20%. Do all the way to the 10th year then add up everything and average it out. Using an excel spreadsheet will make it easier to calculate. SGYIhttps://www.blogger.com/profile/09445517891969740960noreply@blogger.comtag:blogger.com,1999:blog-3276688108456391559.post-89196968999993127352014-08-26T07:29:54.201+08:002014-08-26T07:29:54.201+08:00wah. thats a crazy growth rate that you are assumi...wah. thats a crazy growth rate that you are assuminig. i wonder if you can comment on the individual segment, cause they dont really look like the sort that can grow at 20%, since that is like a starbucks growth rate. how long do you expect them to grow at 20%Kyithhttps://www.blogger.com/profile/07617228143744544821noreply@blogger.comtag:blogger.com,1999:blog-3276688108456391559.post-44744476252815630272014-08-26T00:44:21.843+08:002014-08-26T00:44:21.843+08:00Dear SGYI,
Quoting your statement below,
'As...Dear SGYI,<br /><br />Quoting your statement below,<br /><br />'Assuming a compound annual growth rate (CAGR) of 20%, the intrinsic value would be 52.5 Cents which means the current price of 40 Cents is undervalued and provides a margin of safety of 23.8%.'<br /><br />How do you obtain 52.5 cents? What formula do you use?<br /><br />Apologies if I am asking a stupid question.Anonymousnoreply@blogger.com