tag:blogger.com,1999:blog-7004453.post42669386977306892..comments2023-09-02T19:53:06.144+05:30Comments on Understanding and applying value investing principles: Valuation - reverse engineering the stock priceRohit Chauhanhttp://www.blogger.com/profile/00356455735241398199noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-7004453.post-30815720659268030502008-02-20T22:07:00.000+05:302008-02-20T22:07:00.000+05:30Hi anonymousyes ..you are right ..the numbers for ...Hi anonymous<BR/><BR/>yes ..you are right ..the numbers for crisil are from icicidirect and not the consolidated numbers.<BR/><BR/>i have provided the two companies as an example only and not to indicate that CRISIL has lower potential. It definitely has higher potential than a novartis.<BR/><BR/>however one key point is how much the stock price discounts the potential, which is the main point of the post. higher the PE higher the future discounted by the market. So if you have do well in the stock, then you have to belive that the company will do better than implied by the stock price.<BR/><BR/>so you are perfectly right that crisil could grow faster than novartis. i am not sure that would automatically make the stock a better option at current prices though. <BR/><BR/>regards<BR/>rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-8711062593357824452008-02-20T09:43:00.000+05:302008-02-20T09:43:00.000+05:30I think your estimate of crisil has come from quer...I think your estimate of crisil has come from query rather than actual looking into the numbers. The consolidated PE for Crisil is around 24 times one year forward..which is not really expensive considering the potential that the company has.. Novartis is simply not launching new products..exisiting products losing market share..not woth touching with a bargepole..Given a choice between the two CRISIL is any day better than Novartis...Different people different views.:-)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-8685571714047722132008-01-25T08:39:00.000+05:302008-01-25T08:39:00.000+05:30i dont think the book is available online. you hav...i dont think the book is available online. you have to buy it<BR/><BR/>regards<BR/>rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-77079386800342821102008-01-24T12:19:00.000+05:302008-01-24T12:19:00.000+05:30Hi Rohit,do u have the link for the book expectati...Hi Rohit,<BR/><BR/>do u have the link for the book expectations investing....or we have to buy it.<BR/><BR/>HarshAnonymousnoreply@blogger.com