Following up on my previous valuation post on Sembcorp Industries, some readers have expressed their concerns regarding the much lower intrinsic value I have estimated for SCI using the DCF valuation model as compared to the other analysts' estimates, who were mostly targetting the stock at $5+ to $6. In the previous post, I mentioned that one of the reason is due to the much higher CAPEX i have put in the assumption over the next 5 years, which is substantially higher than what other analyst put in. Since I was discussing this with Kyith the other night, I thought it could be useful to explain in greater details why I did that and how things are going to change should the assumption was tweaked a little. This is going to be somewhat a lengthy post, but if you can stay on until the end, I promise that it will help you in understanding valuation ......