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QuestionsCategory: Valuation QuadrantP/E calculation
Swee Hui Yap asked 4 years ago

i noticed that for your calculation of p/e. you have calculated the intrinsic value per share but you added on the net cash per share to get a higher share price. Do you often do this for valuing stocks by p/e?

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2 Answers
Victor Chng answered 4 years ago

Hi Swee Hui,
 
Yes I often do that because the company cash also worth something so I will add to the intrinsic value.

Swee Hui Yap replied 4 years ago

So similarly if there is debt you will minus off right?

Victor Chng answered 4 years ago

Hi Swee Hui,
 
Yes if the company is on net debt you minus it off the intrinsic value