BSE (Bombay Stock Exchange)- Bet on Financialization?

The intrinsic value coming out to be around - Rs 650 /- share

Figures are in Rs Cr.
My assumption -
BSE will keep making Rs 170 Cr /- Net profits. ( Cyclically averaged )
3% growth for 10 years.
Discount rate 7% (GOI bond - This is going up - Stock will adjust)


Used this Calculator - http://buffettsbooks.com/howtoinvestinstocks/course3/intrinsic-value-formula.html#sthash.v5XjfDFM.FoygrH8B.dpbs

So, with so much of conservative assumptions i see investors at current MCap should make minimum of 6.4% returns. If hidden assets won’t click then this may not be satisfactory return for an stock market investor.

Let me know your views on it.

In 2013 they have made as low as Rs 109 Cr /- , So its if one takes 150 Cr /- as average profits per year for next 10 year then intrinsic value going to be around Rs 570-590 / share.

I don’t think BSE is screaming buy even at today’s Mcap.

What folks think here about the value at today’s mCap ?

Thanks,
Amit

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