Replies to post #147864 on Sino Agro Food Inc (fka SIAF)

[ValueInvestor01]

If you use a P/E of 12 it's worth roughly the same. It's up to you

What makes you think it is worth "P/E of 12"? Why not 20, 10, 5 or 1 or even lower? Where do you get that number from?


And how does that article helps valuing a company? You can say that the investment cost for TRW is $141,999,564, but is it actually what its real value? Not necessary, that's what you paid for that business, but its real value will come from its future earnings. It doesn't matter if you paid $1 Million or $1 Billion for that company to operate, but if they have both the same future earnings, they are worth the same. My point is, investment cost does not equal value. All you might get are tons of useless assets that does not benefit the company. I am not concluding that TRW has a lot of it, but that's not how you value a company. If that's the case, this stock is no brainer worth $20+ which is not and people are not that dumb.