I still prefer using Benjamin Graham way of valuation
simply because its simple not complicated
As an investor,
I normally will check the company cash and bank balances, their debts to check their repayment ability
and then dividend payout to justify whether I should do more further analysis or not.
If its need, I will start my valuation using simple valuation
just like the normal one book value or net assets valuation and P/E valuation
those other ratio already provided by the software,
after all these valuation I will prefer company that able to cover all its debts with its own cash
then check further detail on its earnings, sales, earnings per share whether it shows increase throughout five years or not. Minimum dividend payout around 5%.
After that check their BOD, competence enough or not.
Then will look at their segment reporting to identify the risk, whether their profitable business will affect by environment or certain countries and the other one is the country they expand or having business with.
All these simple valuation I will used to determine whether I should invest or not.
Be happy always
No comments:
Post a Comment