Arvin Setiawan asked 2 years ago
Hi AQ team (Victor/Adam/Rusmin), I hope you are doing well.
I am a little bit confused on how to source the correct number of # of diluted outstanding share of a company, specifically on non-US company who has present in US market as OTC or ADR. Example: LVMUY.
The reason I would like to know this is add discounted cash flow analysis on top of your recommended analysis, which require accurate number of diluted share in the market.
I hope you can help elaborate a bit more on how OTC and ADR works, and how it relates to volume of company shares.
Thank you in advance.
1 Answers
Victor Chng Staff answered 1 year ago
Hi Arvin,
LVMH is listed on the Euro exchange, while LVMUY is an ADR (American Depositary Receipt) listed in the U.S. It has a different share count but reflects the same market capitalisation as LVMH in Euros. When analysing a company like this, it’s best to start with the original company’s financials. Use the share count of LVMH to assess its valuation, then consider buying LVMUY, as the market cap remains equivalent. To find the exact share count, refer to LVMH's latest annual report, where it lists the outstanding shares. Please see the details below.
https://hosting.fluidbook.com/LVMH/2023interactiveannualreport/en/data/LVMH_2023-Annual-Report.pdf. - Page 162 of PDF
Alternatively, you can go to ROIC.ai and search for LVMH and get the number of shares there. Please see below:
https://www.roic.ai/quote/LVMHF
LVMH is listed on the Euro exchange, while LVMUY is an ADR (American Depositary Receipt) listed in the U.S. It has a different share count but reflects the same market capitalisation as LVMH in Euros. When analysing a company like this, it’s best to start with the original company’s financials. Use the share count of LVMH to assess its valuation, then consider buying LVMUY, as the market cap remains equivalent. To find the exact share count, refer to LVMH's latest annual report, where it lists the outstanding shares. Please see the details below.
https://hosting.fluidbook.com/LVMH/2023interactiveannualreport/en/data/LVMH_2023-Annual-Report.pdf. - Page 162 of PDF
Alternatively, you can go to ROIC.ai and search for LVMH and get the number of shares there. Please see below:
https://www.roic.ai/quote/LVMHF
Arvin Setiawan
replied 1 year ago Thanks for the reply Victor.
Let me try to dig deeper on this suggestion.
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