Comments on: DCF to calculate fair value of share price

By: Shabbir Bhimani

Shabbir Bhimani — Mon, 02 Jan 2012 05:58:56 +0000

Great to see that Brian.

By: Brian Leung

Brian Leung — Mon, 02 Jan 2012 05:49:06 +0000

I expanded the text field to 20 characters. Thanks for the bug report!

Here’s an example stock that I ran my DCF on:
http://stockzoa.com/dcf/LICHSGFIN.BO/MTImNyY1JjMm

I ran it with default values, so “garbage in, garbage out”.

Thanks,
Brian

By: Shabbir Bhimani

Shabbir Bhimani — Sun, 01 Jan 2012 06:47:46 +0000

Really Nice Brian but it does not work for Indian stocks because your field to enter the stock symbol is limited to few characters

By: Brian Leung

Brian Leung — Sat, 31 Dec 2011 18:09:50 +0000

Shabbir,

I wanted to point you to a DCF calculator tool that I built at
http://stockzoa.com/dcf . It automatically pulls free cash flow data from Yahoo! Finance to make quick DCF valuations a piece of cake.

Would love your thoughts on how to improve it and make it more useful for you?

Thanks,
Brian

By: Shabbir Bhimani

Shabbir Bhimani — Mon, 11 Jul 2011 04:43:46 +0000

DCF is mathematical forumla where you input numbers and you get output as fair price.

By: t muscat

t muscat — Mon, 11 Jul 2011 01:02:36 +0000

I would like to know what formula you used to come to a fair value when you have not used the discount rate and future cash flow?
t muscat

By: Shabbir Bhimani

Shabbir Bhimani — Wed, 29 Jun 2011 03:06:55 +0000

The pleasure is all mine Taral.

By: Taral

Taral — Wed, 29 Jun 2011 02:45:52 +0000

Thank u Mr shabbir for your reply.

By: Shabbir Bhimani

Shabbir Bhimani — Wed, 29 Jun 2011 01:22:19 +0000

Taral, I am not an expert about the process of transfer and so would not be able to help on the issue.

By: Taral

Taral — Tue, 28 Jun 2011 20:40:40 +0000

Dear Shabbir.

My question is regarding PPF account. Is it possible for me to transfer my PPF aacount from a bank to a Post Office? If yes than where can i find transfer form online? please advice. Thank you.

By: Shabbir Bhimani

Shabbir Bhimani — Mon, 24 Jan 2011 10:49:42 +0000

Again Ajay, you are doing the mistake of taking too much information which will not help you a single bit. If someone has told you something it should be with a reason. I did that in my book which moving average works why and how and should you use only a moving average or not. Check http://shabbir.in/ucp-book/ where I have the Table of content as well so you can understand what it will cover.

By: Ajay

Ajay — Mon, 24 Jan 2011 10:00:03 +0000

Dear Shabbir,
I want buy any stock MOVING AVERAGES 10,50,200 DAYS MOVING AVERAGES.
Some analyst told above 200 day moving average is healthy for market.
one week or day tradeing purpose which moving averages is good.
simple moving average or exponential moving average is good.
plz suggest me daily intraday tradeing stocks.

By: Shabbir Bhimani

Shabbir Bhimani — Mon, 24 Jan 2011 05:53:48 +0000

Ajay, no matter what stock you choose only DCF should not be a good trigger to buy. It can be one of those many such triggers to be buying into stock.

Compare your numbers with the leader in the market and that can be a good comparision. Say compare it with SBI.

Also I will also suggest you to get my latest ebook ( http://shabbir.in/ucp-book/ ) because that will help you understand what is the right time to buy into stock and why Warren Buffet method of investment did not work for me.

By: Ajay

Ajay — Mon, 24 Jan 2011 05:18:27 +0000

Dear Shabbir,
Thanq for good response.
BANKOFBARODA EPS =83.67.AS PER YOUR CALCULATOR AFTER 3 YEAR THE VALUE 1696.
IT IS RIGHT TIME TO BUY THIS STOCK.

By: Shabbir Bhimani

Shabbir Bhimani — Mon, 24 Jan 2011 04:55:33 +0000

Ajay, any mathematical calculation cannot be general on all sectors and all stocks. For some business 2/3rd can be good option but I will say not all. ITC has been around 170 for last few months and so you can have 2 views of looking at it.

1. It has a good support around 170.
2. It has done nothing beyond 170.

So though numbers are all ok you should also see the stock performance and charts.

I am not a fan of ITC because of their major business in tobacco and Govt intervention into this sector does not allow the stock price to do a lot.