By: La Papillion I promised Cheng I'll do a valuation of Kingsmen, so that he can compare with his method of using FCF as a basis for the numerical intrinsic value. I did not undertake a check on the figures he passed on the the spreadsheet, so all the figures are taken from it. A few things to point out: 1. I do not know the business of Kingsmen Creatives as intimately as him, as such, I'm approaching it with the curiosity of a quant. I'm just interested to see how the figures tally. Since I'm did not do a comprehensive research on Kingsmen, the figures I put into my calculation might be a case of GIGO - garbage in garbage out. DO NOT use the figures as an anchor for the intrinsic value, without doing more extensive research yourself. 2. All my calculations are based on the following assumptions: a. I assume that the diluted EPS for FY08 is 7 cts. While 1H08 EPS is 2.85 cts, it possible to reach this full year EPS of 7 cts because Cheng mentioned that the second half is the stronger half of the financial year. Read more...