But the runway period of ours are differently set up.
KLSE:INFOTEC
Intrinsic Earning Value (Discounting ROIC Model)
= EPS×(1÷1.CPI)×(1-(1÷1.CPI)^ROIC)÷(1-(1÷1.CPI))
= 0.0481×(1÷1.03)×(1-(1÷1.03)^26.16)÷(1-(1÷1.03))
= MYR 0.8633839316
MYR 0.8633839316 itself has incorporated a huge MOS.
ROIC is best to be adjusted with Invested Capital by adding the non-productive Idle Cash if any, by this way, adjusted/justified ROIC will be lowered and the runway period will be reduced.
Hi....Can you send me your ASML model?...Tks for all
Hi, I'll DM it to you!
Your concept is very close to mine.
But the runway period of ours are differently set up.
KLSE:INFOTEC
Intrinsic Earning Value (Discounting ROIC Model)
= EPS×(1÷1.CPI)×(1-(1÷1.CPI)^ROIC)÷(1-(1÷1.CPI))
= 0.0481×(1÷1.03)×(1-(1÷1.03)^26.16)÷(1-(1÷1.03))
= MYR 0.8633839316
MYR 0.8633839316 itself has incorporated a huge MOS.
ROIC is best to be adjusted with Invested Capital by adding the non-productive Idle Cash if any, by this way, adjusted/justified ROIC will be lowered and the runway period will be reduced.
Idle Cash has no economical value.
That's a valid argument for adding excess cash actually. On the other hand, excess cash by definition isn't invested capital
I would not outperform the market if I adhere to the academics following the academic folks.
.
My personal definition:
.
Idle Cash
= Non-Productive Excess Cash
.
Excess Cash
= Productive Excess Cash + Non-Productive Excess Cash
= Productive Excess Cash + Idle Cash
.
Justified Invested Capital
= Total Equity + Debts + Idle Cash
.
.
Note:
.
Idle Cash
= Cash & Cash Equivalents - Total Liabilities