mike.nim

4 Comments

    • Infosys Growing Its Revenues From New Clients [view article]
      What do you think is the abnormal growth rate for INFY and the expectations about the term of the growth rate? I've seen some estimates where a growth rate of 25.5% over a period of 10 years with dep. rate of 4.6%, investment rate of 11.4%, working capital rate of 16.64%, tax of 11% - gives INFY an intrinsic valuation of $96.98/share. Some other assumptions used under this scenario include a beta of 1.155, a WACC of 8.47%, ERP of 3%. Does this means that the recommendation on this stock is a buy?

      And by the way, if the excess growth rate period is reduced to 5 years (instead of 10) the intrinsic valuation comes down to $44.7/share. So what the question really becomes if Infosys would be able to maintain a growth rate of 25% over the next 10 years.       Jun 21 03:40 PM
    • Why is Accenture's Market Cap Less Than Infosys'? [view article]
      Ciba,
      Have you been thinking of going into fiction writing? Oh come on now, you can tell me. If not, then the least you could've done before telling that I'm lying, is to make the effort to go to Reuters and see that the market cap they've listed for Accenture is $24.9B and the market cap I've calculated is $32.1B. If you try to see, the difference is because of shares outstanding; that of 778M. Which, again if you check Reuters, has not been taken from Reuters!

      I've said what I wanted to say - Accenture capitalization is greater than Infosys; contrary to this article. If you still believe what you do... there's nothing more I can do.       Jun 20 03:13 PM
    • Why is Accenture's Market Cap Less Than Infosys'? [view article]
      I'm not arguing over Class X, Class 1 or Class A shares. As an investor, I don't care for that. As an analyst, I don't have time for arguing over what all classes constitute shares outstanding for a company. All I know is when I speak to investor relations and they tell me what the shares outstanding are... and I recheck that number from 3 different financial reporting websites - I know I have the right market cap. Jun 20 02:19 PM
    • Why is Accenture's Market Cap Less Than Infosys'? [view article]
      Guys,

      Different analysts have different valuation parameters for reaching a value. They, almost always, agree on at least the number of shares outstanding. But we've got to realize that different analysts have different estimates and expectations about their inputs.

      According to me, shares outstanding for ACN are 778M and Stock price of $41.2, giving the stock a market cap of $32.1B. For Infosys, a stock price of $49.7 and shares outstanding of 551M - giving the stock a market cap of $27.4B.

      My advice? Don't use Yahoo Finance for this. Try Google Finance (finance.google.com), or Reuters.

      Hope this helps.       Jun 20 01:48 PM
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