21-05-2014, 08:06 PM
Hi Buddies,
I would need help on some valuation question. As a value investor, I agree that my buy price must be below my establish valuation after conducting my research both qualitative and quantitative. I understand that most investor use commonly known methods such as PE Ratio, Discounted earnings etc. From what I see most P/E ratio ate just simply ratio and acted just like a yardstick for most of us whetby you can used in to compare between companies. For discounted model, it is the best way to establish an intrinsic value however, nevertheless assumption can be wrong. I am a conservative form of person which I do not like to assume growth to be that high as we can't really predict the future. If given few best investor establishing the intrinsic value, I am sure that the valuation itself would be very different as each person has a difference form of perspective. Any senior here would like to share how do you value your stocks?[/quote]
I would need help on some valuation question. As a value investor, I agree that my buy price must be below my establish valuation after conducting my research both qualitative and quantitative. I understand that most investor use commonly known methods such as PE Ratio, Discounted earnings etc. From what I see most P/E ratio ate just simply ratio and acted just like a yardstick for most of us whetby you can used in to compare between companies. For discounted model, it is the best way to establish an intrinsic value however, nevertheless assumption can be wrong. I am a conservative form of person which I do not like to assume growth to be that high as we can't really predict the future. If given few best investor establishing the intrinsic value, I am sure that the valuation itself would be very different as each person has a difference form of perspective. Any senior here would like to share how do you value your stocks?[/quote]