Saturday, June 15, 2013

Implied Discount Rate for Boilermech Holdings Berhad?

I have done a model to evaluate the implied discount rate as indicated by the target price set by RHB together with my own assumptions.

I am not sure if either I am too conservative or RHB is too optimistic on the valuation RM1.70 as I am getting very low implied discount rates derived from the 2 methods.

You are welcome to give any comments. :) 

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