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You appear to be doing a DCF based on EPS growth and I agree with your number based on your assumptions.. ducati916 on the other hard appears to be doing the buffet style DCF method of growing future earnings by growing ROE which *tends* to come out a lot lower.Having said that, some of my best performers have been cases, both EPS and ROE models suggested it was seriously undervalued and some of my worst have been EPS only DCF valuations. But to then complicate matters, I have had other great performers that would have never come up on either radar But to find a buffet style company in the first place that has the sort of ROE he likes filters 90% of the ASX out anyway ;-)
You appear to be doing a DCF based on EPS growth and I agree with your number based on your assumptions.. ducati916 on the other hard appears to be doing the buffet style DCF method of growing future earnings by growing ROE which *tends* to come out a lot lower.
Having said that, some of my best performers have been cases, both EPS and ROE models suggested it was seriously undervalued and some of my worst have been EPS only DCF valuations. But to then complicate matters, I have had other great performers that would have never come up on either radar
But to find a buffet style company in the first place that has the sort of ROE he likes filters 90% of the ASX out anyway ;-)
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