With the launch of our new interactive analyst reports we complete a monthly review of the approximately 750 valuations in our data-set.  This involves a review of the assumptions we are using in the valuations. We use consensus analyst estimates as the 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 - March 2009

Number 1

Michael Hill International ($MHI.NZ) is a New Zealand-based jewelry retailer and manufacturer.  Valuecruncher currently values $MHI.NZ at NZ$0.71 - 39% above the current share price.

Valuecruncher Interactive Analyst Report For $MHI.NZ

Number 2

Sky Network Television ($SKT.NZ) is a provider of pay and free-to-air television services in New Zealand.  Valuecruncher currently values $SKT.NZ at NZ$5.06 - 33% above the current share price.

Valuecruncher Interactive Analyst Report For $SKT.NZ

Number 3

Hallenstein Glasson Holdings ($HLG.NZ) is a NZX-listed clothing retailer.  Valuecruncher currently values $HLG.NZ at NZ$2.49 - 26% above the current share price.

Valuecruncher Interactive Analyst Report For $HLG.NZ

Number 4

Air New Zealand ($AIR.NZ) is an international and domestic airline based in New Zealand.  Valuecruncher currently values $AIR.NZ at NZ$1.11 - 24% above the current share price.

Valuecruncher Interactive Analyst Report For $AIR.NZ

Number 5

Methven ($MVN.NZ) is a New Zealand company that designs and supplies taps and shower-ware.  Valuecruncher currently values $MVN.NZ at NZ$1.27 - 18% above the current share price.

Valuecruncher Interactive Analyst Report For $MVN.NZ

Those are our top five buys for March 2009.  You can also always find a list of the Valuecruncher sell recommendations for the NZX from most overvalued up using our filters.

Disclosure: None

It is the beginning of a new year. Here in New Zealand an annual tradition is the media reporting of brokers views of the top stocks for the coming year. Here is one of the lists. We were not invited to participate this year - maybe next year. We decided to put out our list of our most undervalued and most overvalued NZX stocks - based on valuations done on the Valuecruncher blog. Unlike the lists in the media - our list includes our assumptions.

Valuecruncher Five Most Undervalued (Cheap)

1. Air New Zealand - +34.78%

2. Michael Hill - +31.34%

3. Sky TV - +31.22%

4. Nuplex - +26.19%

5. Rakon - +24.00%

Valuecruncher Five Most Overvalued (Expensive)

1. Mainfreight - -8.84%

2. Auckland International Airport - -7.65%

3. Fletcher Building - -7.29%

4. F&P Healthcare - -6.45%

5. Steel & Tube - -5.56%

Our valuations have been completed since early October 2008. The percentage over or under valuation was based on the share price at the time the valuation was completed. The Valuecruncher interactive model allows you to play with our assumptions. If you disagree with our analysis - change our assumptions and tell us what you think.

Comparing our list with the traditional brokers. Four of the six brokers list Sky TV - which is one of our picks as most undervalued. But also three of the six list F&P Healthcare - while we have it as one of our most overvalued.

We will revisit these valuations as the year progresses.

Disclosure: None