Latest Emerging Market Viewpoints
From Matt Linsey and the North of South Capital team
We
have written a number of times in the past regarding our investment process which has a clear focus on value. Our definition of value is relative and
we believe that measuring value only in an absolute sense is dangerous. A low price earnings ratio or high dividend yield in isolation provides only
a partial indication of a company’s worth. Stocks are a very long duration instrument – the typical analyst forecast period of 2-3 years usually only
accounts for less than 10% of the value of the business. Therefore, it is imperative to have a robust process in determining the cost of capital which
is used to discount and value the future cash flows.
