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Jeff asked 3 years ago

Hello Victor,
I tried to summarize SLP Resources past years earnings and PE based on table attached. May I seek your comment that – 

  1. is the data make sense to you from a quick glance?
  2. If assume that data source are somehow correct and I did correctly (hopefully), it seems that fair value (FV) of different time span shown obvious gap. It also my understanding that SLP doesn’t demonstrate steady/predicable earning from the past, due to bottom line are hugely affected by external factors like currency and raw material fluctuation.
  3. With those factors taken into considerations what would be you suggestion of based fair value and margin of safety to be used?
  4. to be more conservative i haven’t included net cash position into fair value calculation
1 Answers
Victor Chng answered 3 years ago

Hi Jeff,

The 5 years figure does not make sense as their latest 5 years earnings are boost by RM depreciation and low raw material price. I think your 10 years and Full year mean FV make sense.

 

From your 10 years FV, I will probably wait for 10-20% margin to buffer any error I may have missed out.

Jeff replied 3 years ago

Well received and thank you!