tag:blogger.com,1999:blog-7004453.post113270396522626199..comments2023-09-02T19:53:06.144+05:30Comments on Understanding and applying value investing principles: Concept of variant perceptionRohit Chauhanhttp://www.blogger.com/profile/00356455735241398199noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-7004453.post-71262706862389163282008-06-13T11:40:00.000+05:302008-06-13T11:40:00.000+05:30Hi Rohit,I have been following your blog for quite...Hi Rohit,<BR/><BR/>I have been following your blog for quite sometime now. I just wanted to know if you have written an entry on how you calculate the intrinsic value of a stock. I am an amateur and I wanted to learn. I have downloaded a few of your calculation excel sheets too. Hope my question doesn't sound too stupid.<BR/><BR/>Regards,<BR/>NithinHungryhttps://www.blogger.com/profile/17465469968680163714noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-1132861569930157122005-11-25T01:16:00.000+05:302005-11-25T01:16:00.000+05:30I agree with you that the low moderate growth comp...I agree with you that the low moderate growth company with some kind ( low/high) moat and their valuation assesment. <BR/>And at soem point in the life of these compabnies they do find high ROIC type projects that increases their cash flow and market is caught offgaurd and then there is a rush to overvalue it.<BR/><BR/>Trouble i find is in reconizing these types of company and the period in which their projects are going to give high ROIC than market expectation. knowing this edge can make a good value buy.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-1132856862047429262005-11-24T23:57:00.000+05:302005-11-24T23:57:00.000+05:30yes ...CAP is a term developed by micheal maubouss...yes ...CAP is a term developed by micheal mauboussin. It is the same as the term "economic moat" that buffett uses.<BR/><BR/>what i have seen (strictly my personal view without any data to back it) is that the market typically tends to overvalue companies with high growth but typically tends to undervalue ones with moderate to low growth (but with long CAP). as a result such companies do have a high intrinsic value as they can earn over their cost of capital for long periods of time. in some cases even the intrinsic value keeps growing<BR/><BR/>An added advantage is that such companies due to their moderate growth do not have high operational risk , normally associated with high growth.<BR/><BR/>As as result i tend to prefer such companies as it is easier to project moderate to low growth (which seem to be more sustainable) as long as one can figure out the strenght of the economic moatRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-1132855006965976252005-11-24T23:26:00.000+05:302005-11-24T23:26:00.000+05:30good article. i guess CAP in other words is the ec...good article. i guess CAP in other words is the economic moat that Buffet uses to describe the strength of the business.Anonymousnoreply@blogger.com