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

To: Graham Osborn who wrote (58249)	10/22/2016 3:41:18 PM
From: E_K_S	Read Replies (1) \| Respond to of 78751

It would be interesting to see what EKS's GN calculation is for this one (Syntel, Inc. (SYNT)) Look's like $6.28/share; $29.45/share when I use the Morningstar Financials If you adjust BV=$15.00/share and use next year earnings of $2.57/share. The GN value is $29.49/share or about 37% undervalued. =sqrt(22.5(F14F23)) = F14 = BV and F23 = annual earnings The spreadsheet pulls info from Yahoo Finance. That shows BV= -2.62/share! I do not recall ever seeing a negative BV number a Yahoo Finance. Debt is 26% of market cap. Mot really a rising BV over last five years But FCF looks good, but after 2013 it dropped off like BV 1997: Syntel becomes a publicly traded company in August, as the stock begins trading on NASDAQ as SYNT; 3.45 million shares were floated in its IPO; [9] Syntel opens offices in London and Singapore; revenues pass the $100 million mark. It looks like the company did a few secondary offerings; 3mln 12/2006; 2.6mln in 9/2010; 6.25mln 9/2015 which may account for the drop off in BV/share & FCF/share. I am not exactly sure but based on the charts above, there was some drop off from 2013/2014 period, perhaps an asset sale. Also, Yahoo Finance BV may/could be in error as the chart above shows a $13.80/share BV in 2015. There were several capital expenditures in new facilities: 2008: Syntel breaks ground on its Chennai technology campus and records more than $400 million in revenues. 2013 - Syntel Expands Global Delivery Capacity With Development Center in the Philippines -------------------------------------------------------------- Therefore, Yahoo Finance numbers are suspect. I got better numbers from Morningstar. That's why I originally passed on this one. Your valuations are only as good as your data-set. Maybe another reason to re-work the GN spread sheet and map Morningstar data rather than Yahoo data. Below is from the Morningstar link EKS