D4E ratio, page-384

First 384 Last

Share
Profile

Follow
sohei

482 Posts.

33

22/03/17

09:32

Post #: 23531463
Share

Originally posted by Successwillcome ↑

Very much appreciated Nick.

I think the forum is moving in the right direction

If you start with slide 89 where it is considered whether there have been investments for future growth. I think you can agree that SGH have invested heavily in UK growth?

Slide 90 then as you correctly point out starts with accounting earnings (historical).

However the same slide also explains that we are looking for normalised earnings. In the case of SGH we all know we have been through restructuring and pip so those expenses need to be taken out as they are one-offs. For future cash flows it would be expected that they would improve as restructuring and pip takes effect.

Do you agree to this point?

So for this valuation method while starting point is historical normalised accounting earnings the important bit is the future sustainable cash flows.

That is what creates a fair valuation

Now we have the model for valuation of SGH.

Is anyone keen to run some cash flow figures through the equation and let us know the fair value of SGH based on those figures/ calculations?

Thanks.

Ps It will put your time to good use. A time many of you seem to have plenty off

Expand

You're the same person who said in an earlier post that Everyone knows that book value doesn't equal book value I'm still waiting for your explanation of what it is that book value is if it isn't book value BTW.

Seriously - If you are studying anything it obviously isn't finance, finger painting at a stretch perhaps, but finance - not.

SGH Price at posting: 12.0¢ Sentiment: Sell Disclosure: Not Held
4 Upvote

0 Great analysis

Reply

Top Stories

AZY

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

MKG

Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

MLS

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

ENV

Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

VUL

Vulcan appoints investment bank and M&A veteran to board

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

ASN

Utah authorities sign off on Anson's lithium extraction plans at Green River

NAM

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

MM8

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

There are more pages in this discussion • 42 more messages in this thread...

First 384 Last

Add SGH (ASX) to my watchlist

D4E ratio, page-384

Top Stories

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

Vulcan appoints investment bank and M&A veteran to board

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

Utah authorities sign off on Anson's lithium extraction plans at Green River

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

Featured News