DIGI–Fundamental Analysis (7 Feb 2014)

DIGI Analysis:-

Excel – https://lcchong.files.wordpress.com/2014/02/digi-q4-2013.xlsx

PDF – https://lcchong.files.wordpress.com/2014/02/digi-q4-2013.pdf

My View:-

– Fair values:
  – 5Y DCF: 4.84 – 5.53
  – EY%: 4.02 – 4.37
  – Absolute PE: 4.36 – 4.73
  – DY%: 3.45 – 3.74
– All models indicate that DIGI is either overvalued or fully valued.
– The outperformance of 4Q13 was mainly due to lower-than-expected depreciation and taxes. I am not sure whether this is something recurring for long term.
– With Internet subscribers increased by 14.5% and blended ARPU increased by a modest 2.1% to RM48, I am quite positive with DIGI future prospects.
– However, I believe that DIGI is currently fully (or nearly) valued.
– The last time I accumulated DIGI was in Jul 2013 at 4.66. Thus, I won’t accumulate DIGI for the time being.

Latest Financial – Q4 2013 Financial Report (6 Feb 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1532993

At the time of writing, I owned shares of DIGI.


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