Investing Basics - Feel free to ask the most basic questions


(TK) #709

How does one subscribe to an NCD? I am trying to subscribe to the manappuram NCD, but I am unable to figure out how. Thanks for your time!


(VijayShetty) #710

I am trying to calculate ROA & ROE from Maithan Alloy’s Financial Statements

Maithan Alloys

Page 147 - Net Income 29180.11 Lakhs
Page 146 - Assets 121196.33 Lakhs

ROA = Net Income/Assets = 29180.11/121196.33 = 24.07%

Page 146 - Total Equity 86838.02 Lakhs

Financial Leverage = Assets/Shareholder’s Equity = 121196.33/86838.02 = 1.4

ROE = ROA * Financial Leverage = 24.07 * 1.4 = 33.69%

MyROA = 24.07%
MyROE = 33.69%

But when I look at screener.in’s figures
https://www.screener.in/company/MAITHANALL/

Screener’s ROA = 37.10%
Screener’s ROE = 40.48%

So what am I doing wrong?


(VijayShetty) #711

Trying to do an Intrinsic Value Calculation using Pat Dorsey’s method for Maithan Alloys

Free Cash Flow for 2017-18 was 272 crores. I am assuming a 5% growth in FCF for 10 years using 12% as the discounting rate

Year FCF Present Value
1 286 255.36
2 300.3 239.40
3 315.32 224.43
4 331.08 210.41
5 347.63 197.26
6 365.02 184.93
7 383.27 173.37
8 402.43 162.54
9 422.55 152.38
10 443.68 142.85

Using 3% as long term growth rate, calculating the Perpetuity Value

Perpetuity Value = (443.68 * 1.03)/(0.12 - 0.03) = 5077.67

Present value of perpetuity value = 1634.87

Total PV of FCF + PV of Perpetuity Value = 3577.79

Outstanding shares = 2.9 crores

Intrinsic Value = 3577.79/2.9 = Rs. 1233.72

Screener.in’s Intrinsic Value = Rs. 189
https://www.screener.in/company/MAITHANALL/

I know that they may have used a different formula but can the result vary so much? Or am I doing some mistake in my calculations?


(Mahendra243) #712

How to see intrinsic value in screener?


(Bhupesh) #713

You can download the data using “Export the excel” feature, and see the formula they have used in the sheet.


(donbox5) #714

Just use the Add Quick Ratio box . Using it you can search for and add predefined ratios ( or even your own custom ratios that you defined earlier) . BTW, You need to login to use this feature.


(Mahendra243) #715

I have used it but how do we get a intrinsic value? do we need to write some formula?


(donbox5) #716

Please just type the text “intrinsic value” in the Add Quick Ratio box.


(hemenrk70) #717

If 2017-18 fcf is 272 then how you have come to fcf 630 in the first year


(VijayShetty) #718

Click on Add Quick Ratio & add Intrinsic Value


(VijayShetty) #719

Sorry. I pasted the wrong table (Updating it at the original place also now)

Year FCF Present Value
1 286 255.36
2 300.3 239.40
3 315.32 224.43
4 331.08 210.41
5 347.63 197.26
6 365.02 184.93
7 383.27 173.37
8 402.43 162.54
9 422.55 152.38
10 443.68 142.85

But the rest of my calculations were taken from the correct table.

Using 3% as long term growth rate, calculating the Perpetuity Value

Perpetuity Value = (443.68 * 1.03)/(0.12 - 0.03) = 5077.67

Present value of perpetuity value = 1634.87

Total PV of FCF + PV of Perpetuity Value = 3577.79

Outstanding shares = 2.9 crores

Intrinsic Value = 3577.79/2.9 = Rs. 1233.72

Screener.in’s Intrinsic Value = Rs. 189


(VijayShetty) #720

They are using 16 times PEG into EPS. It’s a different formula than mine. My question is whether intrinsic value calculated using different formulas can vary so much?


(Mahendra243) #721

Thanks…but screener doesnt seems to be given the intrinsic value for all scrips…ex bandhan bank


(VijayShetty) #722

Thinking a little more about it, screener.in’s formula for calculating Intrinsic Value seems to be utter nonsense.

They are using 16 times PEG into EPS.

PEG ratio for undervalued companies is low.
PEG ratio for overvalued companies is high.

So multiplying it by 16EPS for undervalued companies would give you a low intrinsic value for undervalued companies. And a high intrinsic value for overvalued companies. Which makes no sense whatsoever.


(Mahendra243) #723

just look at Nestle Intrinsic value 58614 :roll_eyes:


(VijayShetty) #724

Is there anyone here from screener.in who can comment on their formula for intrinsic value?


#725

There is an email address given in the Customization sheet of the downloaded Excel file. You can check with them.

[email protected]

I too would like to know if the intrinsic value is near to approximation and we can consider it.


(preetkaran) #726

where i can get the relative strength rankings and line for technical stock analysis.
i have been using zerodha kite for charts but unable to find that data.

i have also tried investing.com and money control with no success.
can you please share the source.

Thanks in Advance


(VijayShetty) #727

I think it’s utter nonsense


(Sreekanthreddy9) #728

I was going through dr Lalpath labs AR.
They have mentioned deposits with body corporates as 65 crores and interest esrnjng from the same as 1.7 corre.
What does the mean of body corporates?
How much percentage of interest we can expect from the same?