The first method used by KPMG was the DCF (Discounted Cash Flow) approach. I have written about this in the past: http://cgmalaysia.blogspot.com/2011/07/abolish-dcf-models-in-circulars.html As usual, many pages were written about the approach, the key bases and assumptions, although the economic crisis is rather strangely left out of the picture. When KPMG revealed its results (POSH is worth between USD 613 million and USD 894 million), it left out the calculation itself. In other words, the readers couldn’t check anything and that while the whole circular contains 130 pages and the calculation could be presented in one single page. I assume that KPMG has used very high (unrealistic high) growth forecasts for POSH which resulted in the extreme valuation numbers. A hint of KPMG’s growth forecasts can be found here:

## Maybulk/POSH: KPMG's "independent" advice

## Maybulk/POSH: KPMG's "independent" advice

## Maybulk/POSH: KPMG's "independent" advice

The first method used by KPMG was the DCF (Discounted Cash Flow) approach. I have written about this in the past: http://cgmalaysia.blogspot.com/2011/07/abolish-dcf-models-in-circulars.html As usual, many pages were written about the approach, the key bases and assumptions, although the economic crisis is rather strangely left out of the picture. When KPMG revealed its results (POSH is worth between USD 613 million and USD 894 million), it left out the calculation itself. In other words, the readers couldn’t check anything and that while the whole circular contains 130 pages and the calculation could be presented in one single page. I assume that KPMG has used very high (unrealistic high) growth forecasts for POSH which resulted in the extreme valuation numbers. A hint of KPMG’s growth forecasts can be found here:

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