NDO 0.58% 86.5¢ nido education limited

Given the extreme ends of the spectrum of views of inputs...

  1. 15 Posts.
    Given the extreme ends of the spectrum of views of inputs between opt and Par15 (I reckon it's actually "Paris" in leet speak), I think it would be interesting to see some stress test results from the model.

    Par15's initial valuation of the stock at 97c, and compared using opt's inputs.

    Then the other investors in the forum can see where the results come in relative to the market price today of 20c.

    I think useful model results for comparison would be:
    (1) Par15's initial valuation [97c];
    (2) valuation using opt's reserves and production inputs but using Par15's WACC[??c];
    (3) What WACC rate would be required to get to today's market price of 20c, using Par15's inputs; and
    (4) what WACC rate would be required to get to today's market price of 20c, using opt's inputs.

    Given the interpretation of reported data and assumptions for inputs are can be broadly interpreted (this thread is a prime example of that), I feel that the results of (1) and (2) would provide a decent range of where the true valuation would sit.

    Secondly, given the WACC rate can be so subjective, back solving the WACC to today's market price of 20c based on the two input data views will also provide a range of where the true WACC is.

    So to me, if the results come back and both the results of (2) is higher than 20c, and the result of (4) is a much higher WACC than you'd expect for this sort of company, then you can make a simple decision from there.
 
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