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QuestionsCategory: Valuation QuadrantValuation for ifast
Siew Yean Lim asked 1 year ago

Hi,
A few questions here:

  1. Is IQ appropriate to apply on iFast? iFast is fintech and I saw your reply in other Q&A that IQ is inappropriate for financial and insurance companies.
  2. Anyway, I have run through the financials based on https://secure.fundsupermart.com/fsm/stocks/factsheet/SGX.AIY/IFAST , got a negative CAGR for EPS, 0 for FCF/share and about 10% CAGR for Revenue/Share. Can I use discounted revenue to determine the IV?

thanks.
Regards,
Yean
 

1 Answers
Victor Chng answered 1 year ago

Hi Siew Yean,
 
1.IQ can be use for Ifast, when I talk about financial companies are those credit loan companies.
 
2.For Ifast, the best way to value them is using historical average PE. Their earnings will fluctuate with market condition. They are usually semi-cyclical. 

Siew Yean Lim replied 1 year ago

Thank you for clarifying the type of financial companies. Initially, I was worried because I thought whatever we learned here is not applicable to the financial sector.

Victor Chng replied 1 year ago

Hi Siew Yean,

No prob, It is my fault that I did not state clearly. Sorry about that :)

Siew Yean Lim replied 1 year ago

Just a feedback..
Valuation section is challenging for newbie like me to understand which method is appropriate for each type of company. In addition to showing HOW you use the valuation methods, it will be useful to explain WHY you use the valuation method for the company you evaluate. Perhaps you can improve on this section in future.

Victor Chng replied 1 year ago

Hi Siew Yean,

Thanks for your feedback.

We are looking to upgrade the IQ videos and content again next year. I will take into consideration your feedback for valuation part when we are upgrading.