Publishing Stocks Under-valued

Quote from Gary_McLaughlin:

Kevin,

I probably didn't answer your question.

Value = (Net Income + Dep/Amort - Cap Ex) / 30-year bond rate / shares outstanding. I occasionally ignore Dep/Amort and Cap Ex when they are close together. Such was the case with TRB.
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Hmm...sounds interesting. As am investor I tend to look more for growth, as I find the biggest moves are typically made in the fastest growing stocks. I have been looking at a site with a model, www.valueengine.com, but I have yet to sign up for it. It factors in EPS growth and the 10 year I believe. If anyone has experience with this site or model please tell me your experiences.

Thanks
KK
 
Quote from Gary_McLaughlin:

Kevin,

I probably didn't answer your question.

Value = (Net Income + Dep/Amort - Cap Ex) / 30-year bond rate / shares outstanding. I occasionally ignore Dep/Amort and Cap Ex when they are close together. Such was the case with TRB.
More...

30 year T-bonds as a rate is pretty aggressive valuation no? I'd first go with a mixed wacc, or something closer to the historical industry return rate. Also, you may want to put in a growth rate suitable for the org in question.

Refreshing to see some good ol DCF on the boards, reminds me of skool
 
Quote from landboy:

30 year T-bonds as a rate is pretty aggressive valuation no? I'd first go with a mixed wacc, or something closer to the historical industry return rate. Also, you may want to put in a growth rate suitable for the org in question.

Refreshing to see some good ol DCF on the boards, reminds me of skool
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WACC is a good suggestion. I'll begin looking at that in the future. I also like your suggestion for historical growth rate. In fact, I used to take last years earnings and forecast them to the future using the historical long-term rate but I've found TTM to be just as reliable and more relevant. Discounting with that rate is an interesting idea. If there's an art to valuation it's definitely the discount rate.
 
Quote from KevinK:

Hmm...sounds interesting. As am investor I tend to look more for growth, as I find the biggest moves are typically made in the fastest growing stocks. I have been looking at a site with a model, www.valueengine.com, but I have yet to sign up for it. It factors in EPS growth and the 10 year I believe. If anyone has experience with this site or model please tell me your experiences.

Thanks
KK
More...

Looks like just a site for advertising.
 
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