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QuestionsCategory: Valuation QuadrantJapan Food Holdings video
Yu asked 4 months ago

Hi
I was looking at the Japan Food Holding case study video.
At 19:30, what does DF and DV mean in the table?
How do you arrive at the intrinsic value of $0.538?
 
thank you

1 Answers
Victor Chng answered 4 months ago

Hi Yu,
 
DF is the discounted factor while DV is the discounted value.  

Intrinsic value based on the example is derived from the sum of discount value. 
 
Do note that the video is an old video. The method of analysis is still the same except that we have changed our valuation style. This means that the discounted earnings model that you see in Japan Food, we no longer use it. 

You can go to the valuation quadrant where we teach the latest method we are using currently. I think it is much more accurate then using discounted earnings model. 
 
Hope this helps :)