Excel – http://1drv.ms/1y2vPWD
Notes – http://tinyurl.com/okbx9vn
- 5Y DCF:
- Good Scenario: 6.74 (Fair value uncertainty: HIGH)
- Base Scenario: 5.83 (Fair value uncertainty: VERY HIGH)
- Bad Scenario: 5.02 (Fair value uncertainty: EXTREME)
- Ugly Scenario: 4.31 (Fair value uncertainty: EXTREME)
- At current price (6.46), based on RDCF, assumption of FCFF growth rate in the next 5 years is 9.8%.
- Absolute EY%:
- FY14 (EPS: 0.261) – Fair value 5.91 (Fair Value Uncertainty: VERY HIGH)
- R4Q (EPS: 0.261) – Fair value 5.91 (Fair Value Uncertainty: VERY HIGH)
- FY15 (EPS: 0.271) – Fair value 6.13 (Fair Value Uncertainty: VERY HIGH)
- FY16 (EPS: 0.283) – Fair value 6.41 (Fair Value Uncertainty: HIGH)
- EPS applied to reach the current stock price (6.46): 0.286
- 5Y DCF:
- The full scale modernised network has improved the network quality and customer experience scorecard.
- On this backdrop, data monetisation continues to be Digi’s trump card as shown in the strong data revenue growth.
- I accumulated small lots of DIGI last week. I am willing to pay some premium for this stock due to its outstanding performance and defensiveness.
- Potential upside is limited in the immediate term. As of now, valuation of DIGI is not attractive.
- On the other hand, if you looking for 4% dividend yield and very stable stock, you can consider DIGI.
Latest Financial – Q4 2014 Financial Report (9 Feb 2015) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1871277
At the time of writing, I owned shares of DIGI.