Tuesday, March 31, 2009

My Valuation Criteria

A lot of global blue chips (not financials) are turning up in my screen that fits my criteria of, even after normalising earnings & FCF with an appropriate capitalisation rate :-
1) EV/FCF of 10%.
2) P/B under 1
3) P/S ratio under 0.7
4) Discounted FCF with MOS of 20% at least.
6) Dividend Yield of > 5%
7) Strong B/S

Case in point, Arcelor-Mittal... Something is wrong somewhere.. maybe I missed it...

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