This is a post on the intrinsic value of CDW Holding Ltd.
|Changes in Working Capital||-1,523||-2,000||-1,000||-5,000||7,000|
|Total Current Liabilities||35,785||48,000||46,000||37,000||32,000|
|Common Shares Outstanding||469,859||477,942||499,150||503,534||503,534|
These above are the salient factors to do up my model for long term cash flow, book value and equity growth.
You will notice that equity growth rate is around 7.32% p.a, while outstanding shares are declining slightly at 1.72% p.a, leading to a book growth rate of 9.2% p.a
Using my normal simulation model, the range of intrinsic value provides us with a range of price for the share between 0.20-0.29, using a 10.76% discount rate for future cash flow.
At current dividend rates, it is a 10.28% yield, using annual divided of 1.2 US Cents and current share price of 14 Singapore Cents .
Yes, there is concentration risk of one customer, however, this stock to me screams value at current prices and I am likely to purchase a position in the next week or so.