Friday, November 28, 2008

List of SGX Stocks with their Intrinsic Values

Click Here for SGX list of stocks with Intrinsic Value based on Benjamin Graham's simple formula.

We will be continually adding counters and updating the intrinsic values when new data has been released from Reuters AND when time permits on our end

We urge you not to believe these figures as this is our own opinions.

Think Independently and Anchor on the Right Prices!

2 comments:

  1. I was looking at the interesting spreadsheet calculating the intrinsic value. My initial impression was that the premium paid for future growth was very low. After closer examination, I think that G used in the formula should be whole numbers, i.e if the growth rate is 10%, 10 should be used not 0.10. If 0.10 is used, the value obtained is often too close to 8.5P/E.

    My interpretation of the formula is that 8.5 represents the base P/E ratio that an investor is willing to pay for a zero-growth company.

    Say STEngg has an average EPS of 0.1378 and average growth rate of 10%, so the formula will be 0.1378*(8.5 + 0.2). I'll be paying 0.2*0.1378 =0.02756 for 10% growth rate as compared to ~1.1 for a 0% growth rate. That's where I think the values seem odd!

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  2. Hi,

    Just to make sure we know what you mean...are you refering that the intrinsic value of STENG should then be
    0.1378*(8.5 + 2(10.6)) = $4.09 if the growth rate of 10.6% instead of 0.1 is used?

    Did a google search and guess you are right...in that the formula used whole numbers.

    Hmm..but then the revised calculated intrinsic values now make the prices in 2007 look really cheap!

    Guess with the margin of safety of 50%...STENG should be $2.045 for Graham....

    Thanks for the clarication :)

    SGDividends

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