Click below for complete valuation report
http://www.scribd.com/doc/19739503/Satyam-Post-Crisis-Valuation
Don't want to generalize, but felt that Indian investors follow/discuss more technical analysis than any other valuation. May be its quick way to make money and loose money, because no one can predict how market changes its mood.
Discussed with few analysts and their view point about fundamental analysis - most believe one can manipulate growth rates and other parameters to come up with any valuation. Is that really true if one does in a consistent and correct manner? People say one can fiddle with the terminal growth rate to generate any valuation. Well, I don't know how can one slap any terminal growth rate when it is range bound by long term GDP growth rates. Absolutely, projecting 10 year cash flows is a challenging task, and therefore is a more comprehensive approach to valuing companies in a market agnostic manner. Fundamental valuations doesn't change if particular sector gets over/underpriced.
From a retail investor view point, I think fundamental valuation is the most intutive approach. Its easier for a Relationship manager to make a finacial-unsavvy investor understand poor/good fundamentals(low/high excess returns due to low/high margins or high/low cost) than explaining a 14 PE multiple or stock breaking any barrier.
Below is my first link to Satyam fundamental valuation and hope to do more for Indian market.
Summary
Satyam investors have witnessed a massive wipe-out of their wealth, with its market cap nose-diving by 50 % since Dec, 08. Typical of any financial scam ridden company, Satyam stock got punished once its Chairman Mr. Ramalinga Raju jolted the market with the news of billion dollars financial irregularities. The acquisition by Tech-Mahindra infused confidence among investors community, reflected in the 300% stock appreciation since approval by India Law Board. The valuation report conducted the fundamental analysis of Satyam and valued it at Rs. 214.49, with 75% of its value coming from terminal phase.
Click below for complete valuation report
http://www.scribd.com/doc/19739503/Satyam-Post-Crisis-Valuation
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