Like i said there are a couple of generally accepted models which are used by corporate finance / valuation experts. So its not an out of thin air...
Tomorrow now..... Brain reaching a shutdown mode now
Exactly .....i could have said this myself but wanted you to provide this important consideration. Stock markets and share prices capture future...
@srouta NMDC dividend yield is 8.84%.... even higher than tax free bonds recently issued by NTPC etc Ever wonder why there isnt a mad rush...
Post tax cost of debt Borrowing. 100 at 10% Tax rate. Say 30% The pnl will look like this Gross interest expense. 10 PBT....
Cost of capital is aka hurdle rate. In your example ( if i assume that the cost of equity is 12%), the weighted average cost, of capital is 10.5%...
So do you think that equity and reserves is free money? If you think it is then you are wrong. Usually it is more expensive than debt ( from a...
If ROCE is 30% then EBIT is 30. Interest expense will be 3.PBT is 27 and if tax rate is 30% then PAT is 18. (assuming tax of 9) Reserves in your...
Major cloud solutions provider 8K Miles Software reported over 100 percent rise in its net profit and revenues on Thursday. Speaking to CNBC-TV18,...
So that is why sugar stocks reacted this week. But the benefit to indian companies should be limited to their exports only. Correct me if i am wrong
And yes common equity has an inherent and intangible cost unlike debt which has a real pnl charge ( interest expense on debentures) And guess...
Aka economic profits and not economic capital
Oh for banks the debt equity ratio is never used. but they have some prescriptions around reserve requirements, minimum capitalisation, capital...
Three cheers to 8k.... Its already a 3x for me The approach is fine but timing is key. We shouldnt endup chasing and buying stocks which have...
But i must caveat - i have abt 10% of my portfolio as a floating portfolio and NIIT was part of it. So my action i based on my considerations. You...
Only a longterm bet - seen as one of the beneficiaries of the skill development initiative. I exited thursday/friday post the recent momemtum seen...
Why shouldnt one invest in tata motors - even it should give the 300% return over that time horizon
@carl I agree. Have been a quite strongly voicing an entry into metals and mining myself....hindalco, vedanta and tata steel. @ hakish, the...
Hi, Your point 6 : ROCE doesnt consider cost of capital for what it reflects is how efficiently is total capital being deployed (common equity...
Interesting feedback @kharb. Maybe i should look into vardhaman. I remember once listing it from amongst the textiles. But honestly for the...
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