FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» RAIGAM WAYAMBA SALTERNS PLC (RWSL.N0000)
by Eranga87 Today at 4:12 pm

» ROYAL CERAMICS PLC (RCL.N0000)
by Dilip Today at 11:55 am

» GLAS will be winner with Super Gain.
by ronstyn53 Yesterday at 10:22 pm

» CIC HOLDINGS PLC (CIC.N0000)
by abey Yesterday at 9:07 pm

» First capital holdings CFVF.N0000
by invest thinker Yesterday at 4:46 pm

» LANKEM DEVELOPMENTS PLC (LDEV.N0000)
by Wolf86 Yesterday at 2:00 pm

» ???? අප්‍රේල් 16 ???? මේ දින 3 කෙටි සතියත් කොළපාටින් අවසන් වුනා
by dayandacool Yesterday at 1:58 pm

» Lanka Walltile PLC Investment Case
by judecroos Yesterday at 8:55 am

» Which is the best at current market condition ? ( At least 30% within 30 Days)
by judecroos Yesterday at 8:39 am

» Daily Foreign Transactions
by Pradeep90 Fri Apr 16, 2021 8:03 pm

» Big opportunity in Kegalle Plantations
by EquityChamp Fri Apr 16, 2021 2:58 pm

» විජේදාසගේ... voice cut ප්‍රතිඵල
by nigma Fri Apr 16, 2021 11:59 am

» If you buy a stock that’s not going up in price, you won’t make any money. STOCK market for beginners
by dayandacool Fri Apr 16, 2021 11:31 am

» B P P L HOLDINGS PLC (BPPL.N0000)
by vikiperera Fri Apr 16, 2021 11:17 am

» VPEL VPEL VPEL
by invest thinker Fri Apr 16, 2021 10:23 am

» Thoughts on SINS
by Swissinvest Fri Apr 16, 2021 10:04 am

» VFIN / VPEL / PABC - Share SPLIT or VTWO ?
by WealthKing Fri Apr 16, 2021 8:33 am

» DIPD/HAYC/HAYL
by Harry82 Fri Apr 16, 2021 5:46 am

» LANKA ALUMINIUM INDUSTRIES PLC (LALU.N0000)
by Jana Thu Apr 15, 2021 11:15 pm

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by learningthemarket Thu Apr 15, 2021 8:18 pm

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » TB Auction - rates down again (02-01-2013)

TB Auction - rates down again (02-01-2013)

Go down  Message [Page 1 of 1]

VISA


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
http://www.cbsl.gov.lk/pics_n_docs/latest_news/press_20130102ea.pdf

Arena


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
WOW....all the best

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
TB rate is coming down couldn't make any impact on CSE.
Block trading give some sort of relive to the brokers hut.

speculater

speculater
Senior Equity Analytic
Senior Equity Analytic
TB rate is the risk free rate and as per my knowledge it has a huge impact on finding value of a share........

Arena


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
Yes defa...........

U take TB rate in Capital assets pricing model to find out the cost of equity.
RF + ( Mkt rate - RF ) * beta = COE

So TB will directly effect to the mkt interest rates. Eg. LB is going to cut their FD rates in next month.

An example from my analysis.


I had a valuation of 7.3 for one of our companies Subsidiary at Cost of capital of 20. But with all these things if we value TB at 10% the entire valuation goes to 8.5b with out any cash flow amendment. only effect is TB rate reduction and it gave me a new COC of 17.5.

1) So the overall value of companies goes up. +
2) We get new investors who diverts their money from TB to CSE.

Above is the full impact on the TB rate cut. Hope i am correct and any contradictory view is well come for me to learn

Please ignore the PE and other methods when u do a FCF valuation. we need cash flows and COC. Terminal value is highly subjective.

sanju351

sanju351
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@speculater wrote:TB rate is the risk free rate and as per my knowledge it has a huge impact on finding value of a share........

When TB rates are coming down - I strongly feel investments will attracted to CSE as the yield is more than the TB .
Lets wait and see from tomorrow

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics
Arena,
Yes TB rate will certainly have an impact. Also when you have time it would be good for the forum if you can take some exame( some company) and show the step to do a Free Cash Flow valuation. Some brokers alos use FCF instead of PE NAV to value shares.
@Arena wrote:Yes defa...........

U take TB rate in Capital assets pricing model to find out the cost of equity.
RF + ( Mkt rate - RF ) * beta = COE

So TB will directly effect to the mkt interest rates. Eg. LB is going to cut their FD rates in next month.

An example from my analysis.


I had a valuation of 7.3 for one of our companies Subsidiary at Cost of capital of 20. But with all these things if we value TB at 10% the entire valuation goes to 8.5b with out any cash flow amendment. only effect is TB rate reduction and it gave me a new COC of 17.5.

1) So the overall value of companies goes up. +
2) We get new investors who diverts their money from TB to CSE.

Above is the full impact on the TB rate cut. Hope i am correct and any contradictory view is well come for me to learn

Please ignore the PE and other methods when u do a FCF valuation. we need cash flows and COC. Terminal value is highly subjective.

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
Those who wants to do know more about FCF and Discounted Cash Flow method. Refer this link.
http://forum.srilankaequity.com/t12537-discounted-cash-flow-how-much-is-a-stock-really-worth?highlight=flow

K.Haputantri

K.Haputantri
Co-Admin
Arena, kindly tell us what RF stands for in your formula.

chamith

chamith
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
RF = Risk Free rate (TB is a risk free investment)

Arena
I was just studying this WACC for my ACCA F9 exam. hate calculating beta. Are you an accountant? When studying bit into investments only realize why these companies are paying such a premium to buy into good companies. PE, EPS and not what big companies worried about. They focus on DVM, DCF, COC etc...



Last edited by chamith on Wed Jan 02, 2013 3:24 pm; edited 1 time in total

Arena


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
Yep bro .

But the thing is this.

1) I also did learn it from Google but now use the knowledge for commercial activities. Not for CSE related companies. ( But always feel the requirement of a good analyst who can guide )

2) If we want to do a FCF valuation for a company we should know the Exact future developments ( Cash flows ) if not it becomes a mad analysis like what we do in exams.

3) No point of doing a FCF analysis if we dont buy a huge stake with a long term consideration. And also if u do a company take over u can any way change the cash flows in the long term.

So traders . speculate , and mid term investors has no need to do this.

Just type FCF of DCF will get all the examples and learning materials.

Arena


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@ chamith

Yes u are spot on. I do valuations but didnt train under a good investment company so practical knowledge is very very minimal.

For beta u need cor-variance and variance. Then security market line ?

budu ammo....... those are deep mathematics where u need to practice over and over...........Did those in CIMA then UNI in very detail but cant remember the steps even.

The most important is CASH.......not the profit...............

i am not an accountant. Accountants dont know these but need a fair understanding. financial analyst do know. I am a overall employee who does all the craps and also accounts if needed some times audits also........ lol

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Cash is the king at all times.

I prefer current cash flow generated from operations ( without window dressing) & the DCF used for future cash flows where the cost of capital is the key factor...

Sponsored content


Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum