Replies to post #56521 on Sino Agro Food Inc (fka SIAF)

[RealDutch]

I know of a Fortune-100 that used a 18% project CF discount factor

My method also reflects an 18% discount factor (and I did use 150M shares, not 130M).

Perhaps not a coincidence, since I used PEG.

[RealDutch]

I would be tempted to use a discount factor somewhere between 20-30% for SIAF considering various factors (China, corporate governance, limited access to financing, trading on a crappy list etc)

Duh, are you suggesting that the Zhongshan government doesn't have the cash? :-)

SIAF doesn't need funding for this.

[NYKnuckleballer]

I know of a Fortune-100 that used a 18% project CF discount factor for Argentina a couple of years ago

Do you know over how long of a time period?

The problem with using a single discount figure over a double digit time period is that the ending years basically have no value. Using a 30% discount factor basically makes a $5.9B income stream worth less than $1B.