The Logic Way of Deciding a DESIRED Clean MOS Factor (N Years Back)
Since Cash is devalued year by year in its buying power, I would like to impose on the Intrinsic Value by a DESIRED Clean MOS Factor (N Years Back).
.
Definition:
Entry Price < DESIRED Clean MOS Factor (N Years Back) × Intrinsic Value
.
Formula:
DESIRED Clean MOS Factor (N Years Back)
= Inverse of (Clean Discount Factor)^N
= 1 ÷ (Clean Discount Factor)^N
.
For instance :
DESIRED Clean MOS Factor (3 Years Back)
= 1 ÷ (Clean Discount Factor)³
.
(A)
PDD
Clean Discount Factor
= 1.048982349
∴
DESIRED Clean MOS Factor (3 Years Back)
= 1 ÷ (Clean Discount Factor)³
= 1÷1.048982349^3
= 0.866354147
∴
Entry Price < 0.866354147× (Intrinsic Value)
.
(B)
Sea Limited
Clean Discount Factor
= 1.0782521015
∴
DESIRED Clean MOS Factor (3 Years Back)
= 1 ÷ (Clean Discount Factor)³
= 1÷1.0782521015^3
= 0.7976990232
∴
Entry Price < 0.7976990232(Intrinsic Value)