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

To: Spekulatius who wrote (48864)	7/24/2012 11:11:08 AM
From: waver99	Read Replies (1) \| Respond to of 78748

Thanks Clown, Paul for the replies. Checking the corn price charts, I notice that corn is already at multi-year highs, am not sure how much higher it will go. Based on my calculation, and taking into account a 10% increase in corn prices, i.e. a $50mil hit to pre-tax earnings, SFD EV/EBIT would be 7.06, Earnings power value = $35 per share at 20% increase in corn prices, EV/EBIT would be 7.62. Earnings power value = $33 per share This implies a significant margin of safety, though I am not sure if my calculations are 100% accurate. P.S. Enterprise value I calculated at roughly 4.75 billion P.P.S. EPV is a concept I learnt reading Applied Value Investing, and hope to get your thoughts on the valutation models explained Cheers, XC