Excel – http://1drv.ms/1ECwmFV
Notes – http://tinyurl.com/mtp76p4
- 5Y DCF
- Good Scenario: 4.71 (Fair value uncertainty: HIGH)
- Base Scenario: 4.32 (Fair value uncertainty: VERY HIGH)
- Bad Scenario: 3.95 (Fair value uncertainty: VERY HIGH)
- Ugly Scenario: 3.61 (Fair value uncertainty: EXTREME)
- At current price (4.85), based on RDCF, assumption of FCFF growth rate in the next 3 years is 14%.
- Absolute EY%:
- FY14 (EPS: 0.229) – Fair value 3.17 (Fair Value Uncertainty: EXTREME)
- R4Q (EPS: 0.229) – Fair value 3.17 (Fair Value Uncertainty: EXTREME)
- FY16 (EPS: 0.321) – Fair value 4.43 (Fair Value Uncertainty: VERY HIGH)
- FY15 (EPS: 0.283) – Fair value 3.91 (Fair Value Uncertainty: VERY HIGH)
- EPS applied to reach the current stock price (4.85): 0.351
- 5Y DCF
- Shariah status – Globe could be trade at a premium given the ample domestic liquidity and strong participation by domestic institutions.
- GTRONIC has been consistently delivering steady earnings growth by keeping pace with market demands. This was shown in its latest quarterly results announcement. With a growing cash pile, the company mostly will continue its attractive dividend payouts. I believe that there is still slight room for the stock to appreciate further with expectation on another solid year ahead in FY15.
- Dividend Yield is around 4-5%, not bad. However, valuation wise, GTRONIC is not attractive.
Latest Financial – Q4 2014 Financial Report (24 Feb 2015) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1882841
At the time of writing, I did not own shares of GTRONIC.