VFIN one of the most undervalued share

cseguide · 1 VFIN one of the most undervalued share Sun Jul 13, 2014 6:30 pm

cseguide

Vice President - Equity Analytics

Posts : 1332
Equity Stars : 6397
Reputation : 56
Join date : 2011-04-20

VFIN one of the most undervalued share in the financial sector
Annual EPS 2013----------7.09
Annual EPS 2014----------7.31 ---PE 4.7
Annual EPS based on last quarter ( Q X 4) ---9.64--- PE 3.5
NAV-28.42 It is very healthy
Current PE 4.7 For annual and for quarterly it is only 3.5

Assume 3 scenarios of PE 6 , 8 and 10 what should be the price
If PE 6----- price = 7.31 X 6= Rs. 43.86
If PE 6----- price = 7.31 X 8= Rs. 58.48
If PE 6----- price = 7.31 X 10= Rs. 73.10
If we get the quarterly EPS the target price will be much higher. I keep that part you to decide.

worthiness · 2 Re: VFIN one of the most undervalued share Sun Jul 13, 2014 7:43 pm

worthiness

Senior Vice President - Equity Analytics

Posts : 2577
Equity Stars : 8964
Reputation : 115
Join date : 2011-04-08

@cseguide
Is this the share valuation model (EPS * PE) with 3 scenarios? Just for curiosity only. Thx

cseguide · 3 Re: VFIN one of the most undervalued share Sun Jul 13, 2014 7:54 pm

cseguide

Vice President - Equity Analytics

Posts : 1332
Equity Stars : 6397
Reputation : 56
Join date : 2011-04-20

worthiness wrote:@cseguide
Is this the share valuation model (EPS * PE) with 3 scenarios? Just for curiosity only. Thx

This is not the one and only way of valuation of shares. But this PE and EPS is widely used for this. but for financial shares NAV is also important. If you get the net assert value of VFIN it is 28 and increasing in consecutive years. PBV is good. all of you can do further analysis. Thanks

kkronline · 4 Re: VFIN one of the most undervalued share Sun Jul 13, 2014 9:49 pm

kkronline

Equity Analytic

Posts : 43
Equity Stars : 3731
Reputation : 0
Join date : 2014-04-28

PBV and NPL are most important.
Then comes NIM
Then comes NAV
Then rest

Harry82 · 5 Re: VFIN one of the most undervalued share Mon Jul 14, 2014 7:12 am

Harry82

Senior Vice President - Equity Analytics

Posts : 2365
Equity Stars : 8796
Reputation : 54
Join date : 2012-01-18
Age : 42
Location : Colombo

Compare with other finance companies such as SFL,CRL,LOFC,CDB,CFIN,.....

VFIN's Target price is above Rs 60.00 this year

hettdas · 6 Re: VFIN one of the most undervalued share Mon Jul 14, 2014 7:55 am

hettdas

Assistant Vice President - Equity Analytics

Posts : 611
Equity Stars : 6678
Reputation : 31
Join date : 2011-02-01

I also think VFIN would pass 60 end of this year with present low interest rates.

worthiness · 7 Re: VFIN one of the most undervalued share Mon Jul 14, 2014 9:31 am

worthiness

Senior Vice President - Equity Analytics

Posts : 2577
Equity Stars : 8964
Reputation : 115
Join date : 2011-04-08

Positive outlook of VFIN is visible. Such target prices given above are to be approached approximately by using a share valuation formula. Then what is the most applicable formula for finance companies in order to have target price. It is obvious that lower market price than the higher target price reveals the undervalue status of share. Thx

Harry82 · 8 Re: VFIN one of the most undervalued share Mon Jul 14, 2014 1:43 pm

Harry82

Senior Vice President - Equity Analytics

Posts : 2365
Equity Stars : 8796
Reputation : 54
Join date : 2012-01-18
Age : 42
Location : Colombo

cseguide · 9 Re: VFIN one of the most undervalued share Tue Aug 12, 2014 9:41 pm

cseguide

Vice President - Equity Analytics

Posts : 1332
Equity Stars : 6397
Reputation : 56
Join date : 2011-04-20

FIRST target passed. will pass 50 soon

Richie · 10 Re: VFIN one of the most undervalued share Wed Aug 13, 2014 4:12 am

Richie

Senior Equity Analytic

Posts : 90
Equity Stars : 4133
Reputation : 0
Join date : 2013-05-31

Don't what is going at VFINhttp://www.ft.lk/2014/08/12/rangamuwa-appointed-to-pan-asia-bank-board/..

Still a value share under challenging conditions .