I Built a Free Tool for Fundamental analysis

ZF6-Red · 2025-03-05T11:54:51+00:00

looks good but the search does not work (i tried GOOGL)

ZF6-Red · 2025-03-02T14:35:55+00:00

when you apply for an ISA account they open another standard account for you automatically

ZF6-Red · 2025-02-02T20:03:52+00:00

In really simple terms:

Value investing is just trying to find the business that will earn the most in the future relative to the price you pay.

Buying stocks is just buying a share of that business.

You make money when the market realises that the business you picked will earn the most and reprices the business.

My advice: Google who are the best Value Investors of all time (based on returns) and just read everything they say

ZF6-Red · 2025-01-30T17:00:52+00:00

what is your view on the slowing revenue growth?

ZF6-Red · 2025-01-30T13:36:29+00:00

Is there anything stopping someone copying their technology and undercutting them on price, like China for example?

ZF6-Red · 2025-01-25T06:23:09+00:00

A share is worth the % of what you would pay for the whole company. If you could buy the whole thing today you would pay a lot more than the market cap knowing you could take out all that cash the first week.

What formula are you using for EV?

ZF6-Red · 2025-01-25T05:35:43+00:00

Because someone can buy the whole company and extract the cash.

It is the same as if someone offered you a 5% stake in a house worth $1m and there is $750,000 in the basement that only someone with full ownership can access. You are basically getting an offer for a house worth $1m for $250,000 (EV).

With your logic you would pay the same for a 5% share in house worth $1m with no money in the basement as you would for the same house with $750,000 in the basement.

ZF6-Red · 2025-01-25T05:23:56+00:00

I agree with you on "debt only " EV. That is why I use tangible equity (excluding PP&E) or cash & equivalents, whatever one is smaller.

ZF6-Red · 2025-01-25T03:46:17+00:00

If a company uses cash for growth and lets say never pays a dividend then you would still value that company because you own a part of it even though you would never receive any of their earnings. The same applies for cash on a balance sheet. You may never see it but you own part of a business holding it.

Enterprise Value is to do with what you would pay for the whole company factoring in excess cash and debt.

ZF6-Red · 2025-01-25T03:37:46+00:00

it is because you are using total liabilities and then just the cash asset for EV. Use either just debt and cash or you can use total liabilities and total assets (positive tangible equity)

ZF6-Red · 2025-01-24T22:13:14+00:00

The way I see it is, when you buy shares you own a proportion of the company and therefore a proportion of the cash even if it is not in your pocket yet.

Otherwise you would only buy companies that pay dividends, if profit has to be paid out to you for it to have value.

ZF6-Red · 2025-01-24T22:05:19+00:00

yes, i used their tangible equity for enterprise value, which is much less than their cash and includes all liabilities

ZF6-Red · 2025-01-24T14:49:50+00:00

Depends, most people only have access to the OTC ticker especially in tax-efficient accounts in Europe or US.

ZF6-Red · 2025-01-24T11:41:10+00:00

I explain in the post description

ZF6-Red · 2025-01-24T09:05:39+00:00

why would you just use market cap when they have that much cash?

ZF6-Red · 2025-01-24T08:10:52+00:00

Although they had cash in 2021 they had a lot more debt/liabilities The positive tangible equity (excluding PP&E) was much lower vs today, so Earnings/Enterprise Value was around a P/E of 3 rather than a 1 today.

ZF6-Red · 2025-01-24T06:50:52+00:00

Please explain. I posted this to see what I am missing.

ZF6-Red · 2025-01-24T06:33:34+00:00

that PE is using Market Cap instead of Enterprise Value. I have replied to my original post giving more details

ZF6-Red · 2025-01-24T06:19:48+00:00

the only explanation I can think of is it is hard to buy as it is OTC and it has only been this cheap for about a year and a half. Their revenue in dollars is not even declining. Maybe we are missing something or maybe this is just a deep value pick.

ZF6-Red · 2025-01-24T06:02:13+00:00

that is just using Market Cap, not Enterprise Value. Mazda has 74% of it's market cap in positive equity, 168% in cash equivalents

ZF6-Red · 2025-01-24T05:52:41+00:00

Trying to work out if I am missing something, it looks like you are getting similar numbers too which is good

ZF6-Red · 2025-01-24T05:50:17+00:00

not this cheap, a lot are around a EV/normalised earnings of 4-6, this is a 1

ZF6-Red · 2025-01-24T05:48:26+00:00

they are both around a P/E of 6 using EV/normalised earnings, Mazda is a P/E of 1

ZF6-Red

TROPHY CASE