I'll look into it for you sathyath although it is not one I use myself and will do a calculation after the end of year report is released.
The reason why this formula is currently unsuitable to value RQL (whether you believe in the accuracy of the formula or not) is that RQL currently retains 100% of profits, this will likely change in the future. Also, with the recent acquisition of DSA the end profit and equity per share figures are currently unclear so I'll wait until I see the report and use the figures from that rather than guess.
Roger's intrinsic value formula does not attach any value to exceptional management (which RQL has,) the company's growth prospects which are very subjective, whether or not a company has a competitive advantage and whether the company operates within an industry which is easily accessible or difficult to break into.
All of the above considerations I used to come up with my value.
ZMan, the company is growing so quickly at the moment I rate the chances of a dividend at nil, all available cash will be reinvested into the business.
RQL Price at posting:
67.0¢ Sentiment: Buy Disclosure: Held
