Dapai International Intrinsic Value
Discounted Cash Flow Model
- FY2009 Net Operating Cash Flow = S$75.82 Million
- Discount Rate = 6%
- Number of Shares Outstanding = 992.3 Million
- Intrinsic Value
- Best Case @15% Annual Growth Rate = $1.23
- Median Case @ 10% Moderate Growth Rate = $0.94
- Worst Case @ 0% Growth for the next 10 years = $0.56
Discounted EPS Model
- Rolling EPS = S$0.06459
- Discount Rate = 6%
- Intrinsic Value
- Best Case @15% Annual Growth Rate = $1.04
- Median Case @ 10% Moderate Growth Rate = $0.80
- Worst Case @ 0% Growth for the next 10 years = $0.48
PE Model
- Use PE @ 15 as fair value
- Intrinsic Value = $0.97
PEG Ratio
- Current Price = $0.245
- Current Rolling PE = 3.79
- PEG Ratio @ 15% Growth = 0.25 (<< 1) Super Under Value
- PEG Ratio @ 10% Growth = 0.38 (<< 1) Super Under Value
Summary
- Using MOST CONSERVATIVE Intrinsic Value calculation (ie. 0% Growth for the next 10 years), IV = $0.48 (49% Discount to current price of $0.245)
- Using a more reasonable 10% Growth Rate for the next 10 years, IV = $0.80 (70% Discount to current price of $0.245)
A potential Multibagger penny stock? You decide……
