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.
FINANCIAL CHRONICLE™

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

Click Link to get instant AI answers to all business queries.
Click Link to find latest Economic Outlook of Sri Lanka
Click Link to view latest Research and Analysis of the key Sectors and Industries of Sri Lanka
Worried about Paying Taxes? Click Link to find answers to all your Tax related matters
Do you have a legal issues? Find instant answers to all Sri Lanka Legal queries. Click Link
Latest images

Latest topics

» Latest Financial Status and Future Outlook of SMB Finance PLC
by ChatGPT Yesterday at 11:15 pm

» Latest Financial Status and Future Outlook of Overseas Realty PLC
by ChatGPT Yesterday at 11:00 pm

» Latest Financial Status and Future Outlook of Merchant Bank of Sri Lanka & Finance PLC
by ChatGPT Yesterday at 10:55 pm

» McDonald’s අපේ නෙමෙයි අපේ බෝස්ගේ – අබාන්ස් කියයි
by ChooBoy Yesterday at 10:19 am

» AI Assistance for Stock Market Research and Analysis
by ChatGPT Yesterday at 7:12 am

» Comparative Analysis of the Insurance Sector
by God Father Tue Mar 26, 2024 11:46 pm

» Sri Lanka: Why Pay Exorbitant Taxes?
by ChatGPT Tue Mar 26, 2024 10:52 pm

» LANKA CREDIT AND BUSINESS FINANCE PLC (LCBF.N0000)
by K.R Tue Mar 26, 2024 3:15 pm

» CENTRAL INDUSTRIES PLC (CIND.N0000)
by D.G.Dayaratne Tue Mar 26, 2024 9:11 am

» SIYAPATHA FINANACE PLC (SLFL.N0000)
by ChatGPT Tue Mar 26, 2024 7:58 am

» FINANCE AND LEASING SECTOR
by ChatGPT Mon Mar 25, 2024 6:45 am

» LOLC FINANCE PLC (LOFC.N0000)
by ChatGPT Mon Mar 25, 2024 6:36 am

» CIC HOLDINGS PLC (CIC.N0000)
by ChatGPT Mon Mar 25, 2024 6:18 am

» UNION ASSURANCE PLC (UAL.N0000)
by ChatGPT Mon Mar 25, 2024 6:15 am

» First Capital Holdings PLC: Current Financial performance and future outlook
by God Father Sun Mar 24, 2024 10:58 pm

» LankaBizz: Sri Lanka's First ever Artificially Intelligent (AI) Business and Research Assistant
by God Father Sun Mar 24, 2024 7:27 am

» HOTEL AND TRAVEL SECTOR
by ErangaDS Wed Mar 20, 2024 7:22 am

» CIC Holdings Good Times Ahead
by ashan silva Mon Mar 18, 2024 11:00 am

» EPF Fund keep eye on low P/E Shares
by K.R Mon Mar 18, 2024 8:45 am

» SINS - the Tailwind effects of a crisis hit Economy
by Hawk Eye Mon Mar 18, 2024 8:37 am

» Ceylon cold stores
by Hawk Eye Mon Mar 18, 2024 8:25 am

» Asha securities Provide buy signal for CIC
by ddrperera Fri Mar 15, 2024 1:10 am

» CSE ready for another Downtrend?
by D.G.Dayaratne Thu Mar 14, 2024 11:24 am

» LankaLAW Forum : Sri Lanka’s #1 Discussion Platform for Legal Questions and Answers
by blindhog Thu Mar 14, 2024 9:14 am

» Sri Lanka poised to benefit from demand surge for ‘non-China origin’ graphite
by samaritan Wed Mar 13, 2024 1:31 pm

LISTED COMPANIES

Submit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)



CHRONICLE™ YouTube

Disclaimer
FINANCIAL CHRONICLE™ Disclaimer

The information contained in this FINANCIAL CHRONICLE™ have been submitted by third parties directly without any verification by us. The information available in this forum is not researched or purported to be complete description of the subject matter referred to herein. We do not under any circumstances whatsoever guarantee the accuracy and completeness information contained herein. FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not in any way be responsible or liable for loss or damage which any person or party may sustain or incur by relying on the contents of this report and acting directly or indirectly in any manner whatsoever. Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility, FINANCIAL CHRONICLE™ blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. The information on this website is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.

Further the writers and users shall not induce or attempt to induce another person to trade in securities using this platform (a) by making or publishing any statement or by making any forecast that he knows to be misleading, false or deceptive; (b) by any dishonest concealment of material facts; (c) by the reckless making or publishing, dishonestly or otherwise of any statement or forecast that is misleading, false or deceptive; or (d) by recording or storing in, or by means of, any mechanical, electronic or other device, information that he knows to be false or misleading in a material particular. Any action writers and users take in respect of (a),(b),(c) and (d) above shall be their own responsibility, FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental violation of securities laws of any country, damages or loss arising out of the use of this information.


AI Live Chat

You are not connected. Please login or register

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

+5
sanju351
speculater
Redbulls
Arena
VISA
9 posters

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