Monday, December 13, 2010

Meeting # 32

The meeting was to present our valuations of JB HI-FI
We also had some good general conversations about JBHIFI as well. I thought it was a very effective meeting and feel we made some good progress.

  • Roy 
  • Olzhas
  • Paul
  • Jeffery had also kindly send us some documents that I brought along with some valuations he had got from a variety of sources.

I presented my workings to Roy and Olzhaz and they gave me feedback. My workings got so far as calculating a minimum share price and the earnings per share growth rate. The next step is to use these workings and apply the future predicted share price with a return of 10% per year to back calculate a maximum price which takes into account.

Key Learnings from the meeting
  • For the value calculations generally you are better off using EBIT (as it is closer to the actual earning engine of the business - like the free cash flow figure)
  • The calculations seemed fairly close to what we should be doing. 
The calculations can be found on this spreadsheet valuation spreadsheet if you are on the mailing list you should have write access to it. This will be the place for all our calculations  we produce about JBHIFI. 

Next Steps

We plan to continue to deep dive into JBHIFI 
  • Roy will attempt to finish my calculations
  • Olzhas will add some of his own valuation calculations to compare methods
  • Paul will put together a financial definition cheat sheet so we can quickly check financial terms etc
  • Anyone else Please read the spreadsheet and add anything you want in the blank spreadsheets. And have a go at valuing or adding to the analysis on JBHIFI