rbs top five 100+ ounce producers, page-45

>They both have their place in valuing a company and should be used together and with other valuation metrics to come to an overall view on valuation.



PoisonPill I agree with the above,

I think if you track back to the post that baited me initially you will find that it was someone else who had a closed mind to TRY's P/E.(Pomhat's post-and he is assuming that P/E is an appropriate way to value TRY. Has anyone done a DCF on reserves lately?)

Not to worry though. The main thing is that we all believe that TRY is extremely undervalued.

I actually haven't seen anyone post any calculations or methods of their calculations in any of their posts today. I would like to see Psychiatrist post any of his/her calculations so we can all make an assessment of that as well however no-one has come forth.

I do understand what a discounted cash flow is PoisonPill.

I've actually studied the markets for many years full time so am fairly versed in different valuation methods however I've found certain methods that I prefer due to its accuracy in pinpointing companies that are undervalued. I've seen all of the successful mid tier goldies a few years ago in the Gold bull run and they all went up to approx a P/E of 20 or more in some cases so that's probably a good indicator of things to come IMHO.

What is also frustrating me is that some people don't even understand what a DCF is and how to determine what free cash flow actually means.

Here is some basics below:-

Calculating Free Cash Flow
We work out free cash flow by looking at what's left over from revenues after deducting operating costs, taxes, net investment and the working capital requirements.

Depreciation and amortization are not included since they are non-cash charges.

Read more: http://www.investopedia.com/university/dcf/dcf2.asp#ixzz1YUfmLmiq

In my calculations and forecast future prices for TRY I always include all of the above. That way I am being as conservative as possible.

A DCF quite often is like a wish list if you place a percentage of growth per year into it. Maybe the company will achieve that growth, maybe it won't??

I prefer to not place a growth percentage per year on it. That way, once again, I'm being very conservative and therefore probably less prone to too much future disapointment.

If anyone else has any detailed figures to post then I am very interested to read it.