check out this link. It’s an aussie based value investing asset management company. They have lots of good stuff and analysis.

http://www.intelligentinvestor.com.au/articles/Telstra-TLS/Telstra-structural-separation-coverage.cfm?articleID=1020426

Average P/e ratio for SP500 At March Low = 15
Major Bear Market Lows For SP500 = 7-9
Average P/e ration for SP500 Now = 20

P/e ratio of ASX All Ords At March Low = 8

DCF = $5.33 At 4% forever growth. And a DR of 11%

Telstra looks cheap, not ridiculously cheap.

And The CEO that was horrible is gone

Profit this year was up 9% and revenue up 3%

What you could try is to normalize the past 5 years of Telstra earnings and then using that number in the calculation.

I don’t think Telstra could be that undervalued considering how many people follow it.

Telstra:
Assumptions Annual Profit Growth Rate of 8% (Last Year it increased 10% so its realistic)

Intrinsic Value =( .33 * (8.5+16) * 4.4 ) divided by 5.2 (5.5 being current AAA 10 yr corporate bonds) (4.4 yield of average AAA bonds – Im not sure on the exact yield but id guess it would be higher then 5.2 but ill leave it at 4.4)
Intrinsic Value = 6.84 Per Share

Risks : The Company might be split Refer to http://www.theaustralian.news.com.au/business/story/0,28124,26189909-36418,00.html

Under Valued = >1
Over Valued = <1

6.84 / 3.16 (last traded price)
= 2.16

Therefore Telstra Is Undervalued enormously, however The Debt TO Equity Ratio is 139% which is ridiculous and I don’t understand that situation. Where 30% is usually acceptable.

Telstra has been battered and bruised by the media, and the government and with a solid yield of 9.5% and its profit growth last year was 10% looks like a steal

- Tyler

WDC is too complicated for me to quickly view and offer my opinion. You’ll have to go through the report, analyse the assets, look at cash flow, look at occupancy % and other metrics important to real estate and figure out whether the market cap is above or below your calculation.

Also try and get historical real estate prices. How does the current cost per sqm compare with a more normal scenario.

Australia was the first to raise interest rates so maybe things are looking good back there.

if possible can you work out one company for me, its intrinsic value.
Name: Westfield
Ticker: WDC

Im thinking of selling my bank shares (CBA,WBC),

For CBA the yield has gone from 12% at the last bottom (march) to 6%. and the P/E has gone from sommething like 9 to 16.

For WBC yield has gone from 9% for 4.5% and P/E has gone from 8 to 12

Before the Crash yields were 4-6% and P/E was 30

im not sure which bank is more valuable as wbc has a low p/e but a low yield aswell compared to CBA.

Only 15? woah keep up the questions and thirst for knowledge and by the time you reach 18, you’ll probably be a genius in the stock market.

NNWC is a very simply calculation and concept. It’s just simple addition and subtraction.
Follow the instructions in the following link to know how.
http://www.oldschoolvalue.com/valuation-methods/ben-graham-net-net-deep-value-stocks/

The only piece of information you will need are the annual or quarterly reports for the companies you are interested in.
With the ASX, companies don’t publicly file every single report so you may have to ring the company directly and ask them to send it to you.

Im relatively new to investing. im 15 years of age. i have an account on etrade.com.au but i dont think i can trade on the us exchanges. i am absolutely enthrawled in the biography ” The making of an american capitalist” and in buffet. Is there anyway i can learn how to implement the NNWC formula if i dont know how to do it, is there a way i can learn.

I have shares on the ASX currently and gold shares