I know onething that its future looks bright and valued over 200/- but at this time
Always the professional
Earnings Surprise Approach CFA Level 3 - refer note +
Economic Value Addition Concept
Intrinsic NAV Based Valuation
Read more dear friend
You ought 2 be kidding mate.. Earnings Surprise Approach CFA Level 3 -
CLND is trading closer to 200 times its revenue values, 3X NAV and no cash at all
All it has are the ownership of LP + 14 acres property @ Pettah + buying of adjacent building of LP.
But to kick off any proposed plans, money is also needed rite?
Now are we supposed to think that they got a money printing machine added to their list?Intrinsic NAV Based Valuation -
This has no meaning at all imo for a 'no-cash in hand' company since it will either have to sell its assets or issue rights to develop the proposed project thus the NAV will go down and the share price dilutes.Economic Value Addition Concept -
Economic Value Addition (EVA) is the calculation of remaining profits when the costs of a company's capital - both debt and equity - are deducted from operating profit.
In simple terms, EVA is the profit earned by the firm less the cost of financing the firm's capital.
Economic profit is smaller because it reflects the total opportunity costs than usual profits.
The formula for calculating EVA is as follows:
= Net Operating Profit After Taxes (NOPAT) - (Capital * Cost of Capital)
The idea is that value is created when the return on the firm's economic capital employed is greater than the cost of that capital.
more reading: http://www.investopedia.com/articles/fundamental/03/031203.asp
Regarding CLND, to realize the economic profit, it would take years and years.. So one should not be fooled by theories imo.