I’m practicing how to do discounted cash flow and would like you to check if I’m doing correctly. The result I got were as below,
1) 5 years (2010 to 2010) CAGR were unable to be done because the cash flow/earning were decreasing y-y. Is this correct?
2) Thus I did 10 years cash flow CAGR (I’m using OCF as I do not know what Is FCF,yet), which is 7.9%
Then I calculated Intrinsic value = RM0.30, with Risk-Free-Rate = 6%
With current NTPM share price of 99 cents, I got Margin of safety which was -225%, which was overvalued.
Advanced MOS = -217%, with debt/share= RM0.02.
Did I calculate them correctly?
I’m not very confident, it’s so confusing.
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