At Valuecruncher we have just completed our most recent review of NZX companies in our dataset. This involves a review of the assumptions we are using in the valuations. We use consensus analyst estimates as t
he basis of our assumptions. For example – consensus analyst estimates of revenues for New Zealand’s largest listed company Telecom New Zealand ($TEL.NZ). Valuecruncher uses these numbers and our own assessments of other valuation assumptions such as the discount rate and terminal growth rate.
At Valuecruncher we then pull all of these variables together and place a valuation on the shares of the companies in our data-set and provide a recommendation. You can either simply look at our valuations – or for all the experts out there, you can change the assumptions we have used and modify the valuation. Modified valuations can be saved and shared.
With the completion of our monthly review of the companies on the NZX (New Zealand stock exchange) we decided to outline what we at Valuecruncher see as the most undervalued (the best buys).
We should note that you can always find a list of the Valuecruncher buy recommendations for the NZX from the most undervalued using our filters. The following list highlights the top five buys based on the latest review of the valuation assumptions.
Valuecruncher’s Top Five Buys On The NZX – June 2009
Rakon ($RAK.NZ) is a New Zealand-based designer and manufacturer of high-performance frequency control technology. Valuecruncher currently values $RAK.NZ at NZ$1.87 – 24% above the current share price.
Those are our top five buys for June 2009. You can also always find a list of the Valuecruncher sell recommendations for the NZX from most overvalued up using our filters.