Value Investing Financial Engineers Killed the Art of Investing |
- Financial Engineers Killed the Art of Investing
- Calculating FCF with Consolidated financial statement
- The Father of Portfolio Theory Bets on Rebuilding
- Do options have higher expected returns than stocks on a broad market index?
- Black box investments and tactical speculative investments
- Value of Samsung Electronics
| Financial Engineers Killed the Art of Investing Posted: 03 Feb 2018 02:01 PM PST |
| Calculating FCF with Consolidated financial statement Posted: 04 Feb 2018 04:24 AM PST Hello, I am practicing calculating free cash flow of a company using this formula from Investopedia. FCF = EBIT (1-tax rate) + (depreciation) + (amortization) - (change in net working capital) - (capital expenditure). However, I have a question regarding how this equation is apply to a consolidated statement. Specifically this company The question is that: In the consolidated income statement, the company has the profit of 70,719 but 14,635 of that belongs to non-controlling interest. So, should I be using 70,719 as my starting point still or should I use 56,084 = 70,719 - 14,635 ? And how do I adjust for the fact that 14,635 belong to other people ? ps. The number 56,084 make sense to me at first, but the cash flow statement is also consolidated. Thus, value such as depreciation and amortization are consolidated. Thank you very much for your time [link] [comments]  |
| The Father of Portfolio Theory Bets on Rebuilding Posted: 03 Feb 2018 07:32 AM PST |
| Do options have higher expected returns than stocks on a broad market index? Posted: 03 Feb 2018 09:14 AM PST I've been trying to find some research about whether or not the expected return of a strategy that buys options on the SP500, or other broad market index, has higher returns than being long the index over time. Theoretically options should have higher returns, but I'm wondering if anyone has seen some data? Thanks [link] [comments]  |
| Black box investments and tactical speculative investments Posted: 03 Feb 2018 07:57 AM PST Certain companies are inherently difficult to value/understand. I find the GE conglomerate as one of those companies. While it may seem attractive due to sharp decline in share price, it is difficult to decide on its fundamentals. Do you hold a percentage in your portfolio for which you are more speculative vs fundamentally driven? [link] [comments]  |
| Posted: 03 Feb 2018 06:18 AM PST Although it's not listed in the US i presumed that all of you know this company and i think it's worth to take a look. because it's cheap. -CE (Consumer Electronics) : Manufacturing part for Home Appliances such as TV, Refrigerator, Washing Machine and so on. Samsung has no.1 market share in the US. -IM (IT & Mobile Communications) : Manufacturing part for Smartphones and network equipments. Samsung has worldwide no.1 market share. -DS (Device Solutions) : Manufacturing part for semiconductors(Memory, System LSI, Foundry) and display Samsung has taken top market share from intel last year and it's first time in history. In conclusion, their Market Cap is only 343,908 Billions KRW while their EBIT (ttm) is about 53,645 Billions KRW. and their net debt is -57,471 Billions KRW therefore their EV/EBIT is 5.33 (they have more long term investments of 13,000 Billions KRW but didn't included in this calculation.) futhermore they're repurchasing their shares everyday and they've announced that they'll payback half of future free cash flow to shareholders by dividend and/or share repurchase. finally korean interest rate is nearly same with the US. any thoughts on it? i'd like to hear if anyone can argue it isn't cheap. [link] [comments]  |
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