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VFIN one of the most undervalued share

+2
worthiness
cseguide
6 posters

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

cseguide

cseguide
Vice President - Equity Analytics
Vice President - Equity Analytics

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


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

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

cseguide

cseguide
Vice President - Equity Analytics
Vice President - Equity Analytics

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


Equity Analytic
Equity Analytic

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

Harry82

Harry82
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

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

VFIN's Target price is above Rs 60.00 this year

hettdas

hettdas
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

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

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

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

Harry82
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

lol! lol! 

cseguide

cseguide
Vice President - Equity Analytics
Vice President - Equity Analytics

FIRST target passed. will pass 50 soon

Richie


Senior Equity Analytic
Senior Equity Analytic

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 .

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