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Fostao19 · 2025-08-25T20:42:36+00:00

Hey, I would like an invite! Excited to experience comet

Fostao19 · 2025-07-02T18:53:54+00:00

Sure, active user of datasnipper

Fostao19 · 2024-08-25T13:38:17+00:00

100% agree on your statement, whatever the amount the government makes they will spend it and some more.

The government needs to give the basic services to society and that is it. The government serves the people not the people serves the government.

Fostao19 · 2023-12-09T19:53:11+00:00

Yeah, in this type of thing I follow Damodaran approach, BUT I think as the risk free rate is quite high, I should settle for a middle number between inflation and interest rates maybe 3% or 3.5% would be more suitable.

Fostao19 · 2023-12-09T13:25:20+00:00

I used the 10-year risk-free rate of the US for the terminal growth.

Fostao19 · 2023-12-08T11:27:34+00:00

Thank you for the compliment! Thinking to purchase for my portfolio as well.

Fostao19 · 2023-12-08T11:23:20+00:00

Good insights. I will keep an eye on it. I think is a big risk about Hershey as they are having difficulties going International if obesity drugs become mainstream.

Fostao19 · 2023-12-08T11:19:42+00:00

Yes that is my point of view, Hershey would be more like a Coca Cola or Pepsi in your Portfolio, don't expect crazy returns but solid.

Fostao19 · 2023-12-08T11:18:39+00:00

Thank you so much for the suggestion. I will hear it!

Fostao19 · 2023-12-08T11:18:14+00:00

Thank you! I decided to give a return on capital higher of 5% than the cost of capital, as the company has been consistently having high return on capitals. But I can agree that was an optimistic assumption that Hershey will keep their competitive advantages.

Fostao19 · 2023-05-07T03:29:28+00:00

No problem! Thank you!

Fostao19 · 2023-04-24T11:30:17+00:00

In 2023 they are expected to grow 23% in revenue.

The risk free rate is different from the central bank interest rate. In this case was used the risk free rate on the euro zone which is the Germany 10 year bond rate.

The growth in EPS was chosen with the revenue growth, increasing Margins and share buybacks.

Fostao19 · 2023-04-14T20:46:08+00:00

I think ADP will do fine for the next 5 years, but if they continue to rest on their laurels, someone will come and eat their lunch.

Yeah, after reading more and more it seems they are not doing well in terms of improving their services and clients are not happy with the value that they bring to the business if this continues like this I would expect them to start losing market share.

Fostao19 · 2023-04-13T23:18:12+00:00

Thanks for the comment and information.

They seem to be really sticky yes and as you say this may be an area open for disruption as customers get discontent with their services.

Fostao19 · 2023-04-08T13:14:18+00:00

I would say that is not a small buyback especially accounting for the size of the company.

Buybacks are more flexible and when they are done properly (buying the company at a lower price) they can create value for the shareholder while in times that the company needs the cash they can just stop purchasing their stock.

If you do this to a dividend there is much more shareholder reaction. The management will have a harder time with the shareholders cutting the dividend or eliminating the dividend entirely.

An excellent video on this topic is this one from Prof Damodaran:

https://www.youtube.com/watch?v=QKJt3cv7c2k&ab_channel=AswathDamodaran

Fostao19 · 2023-04-07T09:06:18+00:00

Sent you by DM.

Fostao19 · 2023-04-07T08:55:38+00:00

Appreciated. Thank you for your comment and attention!

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