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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Oblomov who wrote (33383)	2/1/2009 12:14:07 PM
From: Jurgis Bekepuris	Respond to of 78673

I agree with your observations regarding GSK debt. It needs to be taken into account. For me, LLY and NVO are still both too expensive to buy. So I will probably get some JNJ. :) I use couple valuation methods: ROE/ROIC based extrapolation of earnings to the future and then calculating rate of return; inverse P/E or earnings yield adjusted for cash/debt; net-net current assets or net cash. I use the same methods for all industries. I avoid low margin, high debt, low ROE companies though. And net-nets are usually a totally separate category, although now there are some OK ROE companies that are becoming net nets. Hope this helps.