Using a different approach, we used a 15-year discounted DPU modal with no terminal value. The DPU growth rate is estimated at 3.07% and we opt for a discount rate of 2.75% which is approximately the Singapore Savings Bond (SSB) long term interest rate. Based on this, we derive an intrinsic value of $1.144. Similarly, investors should invest only at a price below $1.144 so that there is a comfortable safety margin. aking the lower of the 2 estimated value of MLT’s share price, we think that investors should be conservative and invest only when the share price trades below $1.12 with a comfortable margin-of-safety. At time of writing, the share price is currently trading at $1.195.
Using a different approach, we used a 15-year discounted DPU modal with no terminal value. The DPU growth rate is estimated at 3.07% and we opt for a discount rate of 2.75% which is approximately the Singapore Savings Bond (SSB) long term interest rate. Based on this, we derive an intrinsic value of $1.144. Similarly, investors should invest only at a price below $1.144 so that there is a comfortable safety margin. aking the lower of the 2 estimated value of MLT’s share price, we think that investors should be conservative and invest only when the share price trades below $1.12 with a comfortable margin-of-safety. At time of writing, the share price is currently trading at $1.195.
Reply to @akwl88 : Thanks for re-posting the analysis from the article.
Let me know if you have any feedback or comments. Happy to hear where we can improve on the analysis.