A Letter to My Fundamental Scorecard Website Subscribers
Dear Subscribers of Fundamental Scorecard,
Thank you for continuing to subscribe to us. The database has been updated.
How have you been? As the 3rd quarter draws to a close, this year seems to give us a peak towards a pre-crisis market.
Having a long-term mindset, we try our best to understand Mr Market while holding our core investing principles firm.
This resulted me in changing The Ultimate Scorecard once again (without change name). As I have stated previously, I removed the dividend scorecard portion and expanded on the valuation portion.
Currently, the expanded valuation portion acts as a separate calculation of the valuation of the company based on the free cash flow it generated.
It is called Estimated Valuation.
It is an estimation of the value of the company based on
1. 0% growth; and
2. a series of discount rate ranging from 15% to 30%; and
3. The last 5 years of free cash flow it generated
There is a second check on the valuation based on Graham Method. However, this is for the defensive investor whom looks for positive net profit and positive equity in a company.
Even if Graham Method is unable to produce a value due to the company reporting losses or having negative equity, the Estimated Valuation of the scorecard may still inform the user to buy the company at the current share price due to the series of free cash flow it has generated over the last 5 years.
Another way you could use the Estimated Valuation portion is to find a share price where you may sell the company. Furthermore, do also note that many S-Chips and RTO companies may passed the Estimated Valuation of the scorecard. Please ENSURE you knew what the company is doing prior to investing in it.
Do note that this section is meant to be read separately from the value scorecard portion. Both portions could indicate different results, but each portion is just an indication that the company maybe undervalued at the current share price.
The best company is always one that passes both portions.
Once again, thank you for subscribing.
If you have any question, feel free to email or contact us!
Regards,
TUB
If you are interested to know more about The Ultimate Scorecard or Full Analysis, do visit the Fundamental Scorecard website for more information!
We have also released the Moat Scorecard with InvestingNote. Do take a look!
Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.
Thank you for continuing to subscribe to us. The database has been updated.
How have you been? As the 3rd quarter draws to a close, this year seems to give us a peak towards a pre-crisis market.
Having a long-term mindset, we try our best to understand Mr Market while holding our core investing principles firm.
This resulted me in changing The Ultimate Scorecard once again (without change name). As I have stated previously, I removed the dividend scorecard portion and expanded on the valuation portion.
Currently, the expanded valuation portion acts as a separate calculation of the valuation of the company based on the free cash flow it generated.
It is called Estimated Valuation.
It is an estimation of the value of the company based on
1. 0% growth; and
2. a series of discount rate ranging from 15% to 30%; and
3. The last 5 years of free cash flow it generated
There is a second check on the valuation based on Graham Method. However, this is for the defensive investor whom looks for positive net profit and positive equity in a company.
Even if Graham Method is unable to produce a value due to the company reporting losses or having negative equity, the Estimated Valuation of the scorecard may still inform the user to buy the company at the current share price due to the series of free cash flow it has generated over the last 5 years.
Another way you could use the Estimated Valuation portion is to find a share price where you may sell the company. Furthermore, do also note that many S-Chips and RTO companies may passed the Estimated Valuation of the scorecard. Please ENSURE you knew what the company is doing prior to investing in it.
An extract of a Estimated Valuation |
The best company is always one that passes both portions.
Once again, thank you for subscribing.
If you have any question, feel free to email or contact us!
Regards,
TUB
If you are interested to know more about The Ultimate Scorecard or Full Analysis, do visit the Fundamental Scorecard website for more information!
We have also released the Moat Scorecard with InvestingNote. Do take a look!
Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.
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