The Intrinsic Value Puzzle: Components and Case Studies

What is the 'Intrinsic Value' of a Stock? What are its components? How do they affect the way the company's Stock is likely to behave? We will attempt to answer these seemingly daunting questions in simple terms and with relevant, real world examples.

D-Mart Valuation: The 100 P/E Conundrum

Avenue Supermarts Limited, or D-Mart as it is better recognized, is a curious case. The stock trades on the Indian markets at a staggering P/E of 118. Although absolute P/E levels are nowhere near indicative of undervaluation or overvaluation of a stock, we still have to ask, how much is too much? Today, we will attempt to answer that question.

HDFC AMC IPO Valuation: Speed Demon

'Mutual Funds Sahi Hai' says a famous Indian TV advertisement. While the slogan is used and abused several times over, the sentiment seems to ring true with many Indians. We know for a fact that only 2-3% of India invests in Equities directly or in Mutual Funds. However, the general trend is that the number of people investing in these modern savings schemes have increased drastically. So, it would be an understatement to say that HDFC AMC filed for an IPO at the most opportune of times. With HDFC AMC's IPO opening today (25-07-2018), I wanted to register my thoughts on the company and its Valuation before I could be accused of hindsight bias from the Listing Price.

Shemaroo Entertainment Valuation: The Netflix of Bollywood?

Gone are the days when Indian families rented out VCDs/DVDs on a quite Sunday afternoon and sat down to watch a movie with samosas and hot chai. Every day, more and more set of eyes are turning towards the internet. That online content making and distribution is an emerging macro trend in India is undeniable. Shemaroo Entertainment is a niche player in such a niche industry. Does the market under-appreciate its merits or does it overshoot its possibilities? Let's explore these questions further.

Eicher Motors Valuation: Valuing the Indian Dream

We all know the feeling.. the thrill of kick-starting a Royal Enfield motorbike and hearing the *dug dug dug* sound emerge from the rear. Over the years, Royal Enfield has almost become a household name. It's become a dream every Indian aspires towards and every family is proud to have. But what is the Value of that dream?

Numbers and Narratives: A Simple Discounted Cash Flow (DCF) Model for Equity Valuation

I still remember the day I got into Equity Valuation. It was a drowsy Saturday afternoon and I was browsing through YouTube videos on Finance. I had been feeling quite annoyed with myself, because I was not making use of my free-time productively. You can imagine how difficult that must have been.