Value Investing on Stocks

[Theko]

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[QUOTE=makie;9983850]You can start by doing some research about fundamental analysis basics. Some of the very basic and very useful infos are EPS (Earnings-per-share) ratio and P/E (price per earnings ratio). There are actually a lot of methods to use in FA but those are are by far among the most popular.

Some of the things that I read in financial statements:

1.) Earnings growth. Consistent ba for the past years?
2.) Debt to Equity ratio. Basis if the company is financing either through debt or equity. Kung debt, I stay away.
3.) EPS and P/E ratio.
4.) Dividends. Though not really that important in comparison to value appreciation, at least it helps. Some companies are not just consistent, dagko pa gyud ug hatag.
5.) Company profile. Dakong factor pud ni. If reputable ang mga nagdala sa company, it will most likely go up

Debt financing, up to a certain point is good. It gives tax savings. You should stay away from companies who have management that avoid these advantages.

Dividends are very useful when valuing companies, IMO. When a company has been constantly giving out dividends, you can use the dividend discount model to value the company.

[Theko]

I find solving for intrinsic value difficult. Could anyone teach me how using Graham's formula?

Some problems I encountered:

1.) Since I am more comfortable with the revised formula rather than the formula presented in his old books, it is difficult for me to solve for the average yield of AAA bonds. In his book he used 4.4, but in Philippine setting, what should I use, or where can i get the figures to compute?

2.) How do I solve for growth rate?

3.) To solve for trailing EPS, I find the average of the quartely EPS in the FS in one year. Is this right?

anyone?

anyone?

[nodols3]

I find solving for intrinsic value difficult. Could anyone teach me how using Graham's formula?

Some problems I encountered:

1.) Since I am more comfortable with the revised formula rather than the formula presented in his old books, it is difficult for me to solve for the average yield of AAA bonds. In his book he used 4.4, but in Philippine setting, what should I use, or where can i get the figures to compute?

2.) How do I solve for growth rate?

3.) To solve for trailing EPS, I find the average of the quartely EPS in the FS in one year. Is this right?

anyone?

Actually bro, parehas ta ug mga pangutana...
Maybe naa uban dinhi ganahan mo share sa ilang nahibaloan?

[eumir]

You can start by doing some research about fundamental analysis basics. Some of the very basic and very useful infos are EPS (Earnings-per-share) ratio and P/E (price per earnings ratio). There are actually a lot of methods to use in FA but those are are by far among the most popular.

Some of the things that I read in financial statements:

1.) Earnings growth. Consistent ba for the past years?
2.) Debt to Equity ratio. Basis if the company is financing either through debt or equity. Kung debt, I stay away.
3.) EPS and P/E ratio.
4.) Dividends. Though not really that important in comparison to value appreciation, at least it helps. Some companies are not just consistent, dagko pa gyud ug hatag.
5.) Company profile. Dakong factor pud ni. If reputable ang mga nagdala sa company, it will most likely go up

.

bro ask lang ko, unsay figure sa EPS ug P/E ratio nga acceptable sa imo to decide nga mo BUY ka ana nga stock? thanks.

[arclops]

bro ask lang ko, unsay figure sa EPS ug P/E ratio nga acceptable sa imo to decide nga mo BUY ka ana nga stock? thanks.

My take,

EPS - I don't stick to a specific number or ratio as long as it's increasing for the last 5years(at least) and I use it to compute P/E which I think is more important. So it's a variable that depends on share price. Example, if the stock currently has an EPS of 20 then the share price is 1000, then for me it's not a good stock. For a share price of 1000 I will come up with an EPS of at least 67. So the only 2 things I consider for EPS are its growth and its use in computing the P/E.

P/E - I stick to 15 or lower


Disclaimer: I do not recommend these values to anybody. This is just my personal preference based on research and study.

[MoD]

unsay mga stocks inyo gi tanaw run for value investing??

im looking at DMC, EDC, and AP..

[MoD]

i have a book regarding "value investing for steady growth"

"The more the price falls, the more money you spend to buy a lot of the cheap shares. The more price rises, the MORE shares you SELL to take profit off the table"

*importante regular ka mubutang ug money... EIP is also value investing ryt??

anyways.. kung unsay strategy na maayo and comfortable ta.. adto ta.. if we are comfortable with Long term Hold. adto ta.. kung comfortable ta sa value investing.. adto ta.. importante we can make money on it...

for example.. Mr. Bo Sanchez.. mu baligya pud cla stocks if ni abot na ila TP.. and what i know long term hold pud na cla...

[Theko]

unsay mga stocks inyo gi tanaw run for value investing??

im looking at DMC, EDC, and AP..

Im comfortable holding AP and SMPH. Im looking to switching to SMDC if I like the numbers because small cap pa xa. SMC ra jud ang major flaw sa akung portfolio. Pure speculation, and weak financials on the count of too much acquisitions.

Pwd ko mangutana asa ka palit sa libro bai?

[arclops]

i have a book regarding "value investing for steady growth"

"The more the price falls, the more money you spend to buy a lot of the cheap shares. The more price rises, the MORE shares you SELL to take profit off the table"

*importante regular ka mubutang ug money... EIP is also value investing ryt??

anyways.. kung unsay strategy na maayo and comfortable ta.. adto ta.. if we are comfortable with Long term Hold. adto ta.. kung comfortable ta sa value investing.. adto ta.. importante we can make money on it...

for example.. Mr. Bo Sanchez.. mu baligya pud cla stocks if ni abot na ila TP.. and what i know long term hold pud na cla...

I prefer to buy GREAT companies because they are currently UNDERVALUED rather than buy companies because they are CHEAP...

Just my 2 cents...

[redhorse1L]

LPZ P/E = 2.3

If based lang ana, then LPZ is a screaming BUY for investors.. hehehe