NAVPS OR EPS ?????

ADP · 1 NAVPS OR EPS ????? Wed Aug 13, 2014 10:50 pm

ADP

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When you look at the valuations on some stocks its EITHER the NAVPS valuation(NAVPS*1.5) OR the EPS valuation (EPS*12) on the stock is very much lower than the price of the stock. Its like if NAVPS is higher than the current price EPS is way low and vis-a-versa.

So how do you say a stock is over priced or not?
Which ratio is better?
Can any one share some stocks where both NAVPS and EPS valuations are higher than the current price.

Dr Stock · 2 Re: NAVPS OR EPS ????? Wed Aug 13, 2014 11:02 pm

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There are plenty .
Eg :- George Stuert Finance

Today traded at Rs 41 /=
NAVPS 14.61 . so its 3 x NAVPS
EPS 0.30 . So its 136 x EPS

Kind of funny !

ADP · 3 Re: NAVPS OR EPS ????? Thu Aug 14, 2014 12:25 am

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Dr Stock wrote:There are plenty .
Eg :- George Stuert Finance

Today traded at Rs 41 /=
NAVPS 14.61 . so its 3 x NAVPS
EPS 0.30 . So its 136 x EPS

Kind of funny !

Dr Stock valuation for GSF should be something like this
0.3*12 = .36
OR
14.61*1.5 = 21.95

Either way the counter is trading far beyond what would be fair value.

NilangaG · 4 Re: NAVPS OR EPS ????? Thu Aug 14, 2014 8:07 am

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NAVPS is not so important but EPS is. Think about business like tobacco. However, for banking sector, NAVPS gives you an idea about where the share price should be but still EPS is the key.

Dr Stock · 5 Re: NAVPS OR EPS ????? Thu Aug 14, 2014 9:25 pm

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I got yo question wrong.
i thoyght u want overvalued ones.
In other words u r asking for undervalued stocks.
Its time consuming but worth.
Have to go through financials reports. scratch

ADP · 6 Re: NAVPS OR EPS ????? Fri Aug 15, 2014 8:16 am

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Dr Stock wrote:Have to go through financials reports.

@ Dr Stock Buddy I think It would be worth the effort.

Dear Admins of this forum,

FOR ALL ADMINS AND OWNERS OF THIS FORUM:

Cant we start a repository that has a collection of this data. If you specify a format and allow members to update as and when financials are released all participants to this forum can contribute and benefit.

Dr Stock · 7 Re: NAVPS OR EPS ????? Mon Aug 18, 2014 12:19 am

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Most of posts going about trendy stocks.
Because they will give high gain in short term.
"Trend is the friend "

I think MTD Walkers KAPI.NOOO is a one falls within your dimensions mentioned.
At the year ended 2014.

EPS 4.42
current price 36.40
So its 4.42 * 8.82 = 36.40

NAV is 42.03
So at the current price its trading below book value.

But according to the report their Liability column increased.
Specially non current liabilities. Meaning they have taken a long term loan.
But also they have solid increase in assets.

Last Q is also impressive 95 % profit growth compare to last year quater.

This may be a undervalued stock.

D.G.Dayaratne · 8 Re: NAVPS OR EPS ????? Mon Aug 18, 2014 8:35 pm

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Kegalla Plantation

NAVPS 137 *1.5 =205.50 as at 2014 march 31

EPS 17.18*12 = 206/= as at 2014 march 31

But to day market price is Rs 99/=-100/+

WHY?

Last edited by D.G.Dayaratne on Mon Aug 18, 2014 8:41 pm; edited 1 time in total (Reason for editing : correction)

ADP · 9 Re: NAVPS OR EPS ????? Mon Aug 18, 2014 8:42 pm

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Dr Stock wrote:Most of posts going about trendy stocks.
Because they will give high gain in short term.
"Trend is the friend "

I think MTD Walkers KAPI.NOOO is a one falls within your dimensions mentioned.
At the year ended 2014.

EPS 4.42
current price 36.40
So its 4.42 * 8.82 = 36.40

NAV is 42.03
So at the current price its trading below book value.

But according to the report their Liability column increased.
Specially non current liabilities. Meaning they have taken a long term loan.
But also they have solid increase in assets.

Last Q is also impressive 95 % profit growth compare to last year quater.

This may be a undervalued stock.

OMG Dr Stock what a pick!!! I was away the whole day today and this is what I missed...damn Sad

Thanks anway man!!

ADP · 10 Re: NAVPS OR EPS ????? Mon Aug 18, 2014 8:59 pm

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D.G.Dayaratne wrote:Kegalla Plantation

NAVPS 137 *1.5 =205.50 as at 2014 march 31

EPS 17.18*12 = 206/= as at 2014 march 31

But to day market price is Rs 99/=-100/+

WHY?

in NOTES TO THE FINANCIAL STATEMENTS
"
In May 2014, the Company invested in 10.0 Mn, Rs. 100/‐ each five year Fixed Rated Listed Debenture (11.25% p.a.) Payable Semi Annually Issued by the
Ultimate Parent Company (Richard Pieris & Company PLC) amounting to Rs. 1.0 Bn."

Is this resulting is negative Finance Income??

Anyway this seems to be a good share to place a bet if the sector starts to run..

Dr Stock · 11 Re: NAVPS OR EPS ????? Mon Aug 18, 2014 9:45 pm

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Tht prediction was solely based on financial reports .
Not with any hidden news. Very Happy

KGAL is a good share too. Their dividend Yield also good.
But plantation highly affected by labor wage hikes and weather.

Anyway your idea was excellent finding undervalued ones.
There are few more. im still analyzing them.
Some stocks are heavily undervalued...
Keep an eye on C M Holdings ( COLO)
Today jumped from Rs 97 to Rs 103 and pulled back to Rs 93 and solidly returned to Rs 101 as close for the day.

This is also trading less than half of its book value.

Dr Stock · 12 Re: NAVPS OR EPS ????? Thu Sep 04, 2014 10:20 pm

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To be successful in stock market ,
one way is to identify the early trend.
Second way is to identify undervalued ones.

According to this thread we discussed about KAPI at 35-36 .
it went near 55.
COLO discussed around 100 and now on 130 and still on the move.

here what we see is most of people discussing about
GREG , REEF , HVA , PCH , AINV , TAP , AAF etc.

But if we do some home work and try to fugure out above type of undervalued ones everybody will get benefited rather than promoting useless craps.

Still there are heavily undervalued stocks out there.
Pls contribute and share your views.