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QuestionsCategory: Financials QuadrantNet Debt vs Net Cash
Duvell Boo asked 2 years ago

hi Victor,
1.after using your excel Financial-Analysis, i found most companies are having Net debt compare to Net cash, is this consider normal for listed companies?
2. i think it will be useful for everyone if have excel template for calculating intrinsic value as well?
Duvell ;)

1 Answers
Victor Chng answered 2 years ago

Hi Duvell,

  1. It is quite a normal thing as most listed company want to efficiency use their capital structure. Usually US companies have more net debt position as compare to Asian companies. 
  2. Our way for calculating IV is based on PE, PCFO and PB which required to plot chart. Hence, it is highly dependent on the company.