(Small Caps that pass the 'One Rupee' test - equitymaster.com -)

Can anyone elaborate how he got that figure (Rs 133.3) as the intrinsic value of the business?

ROE of the business is 20%.

That means Rs 100 invested in this business will generate Rs 20 dividend every year..

Opportunity cost of capital is 15%. In other words, investors who invest in such businesses expect a minimum return of 15% per year.

If the business gives 33% excess return (20%) over the minimum expectation (15%), its intrinsic value is higher by 33% too.

That is how this article gets the figure of Rs 133.3.

There is no single definition of "intrinsic value" and different sources give different explanations of "intrinsic value".

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Oh, he was basically using the DCF cash flow analysis to calculate the intrinsic value.
According to the Gordon Growth Model, (DCF Analysis: Coming Up With A Fair Value | Investopedia)

Terminal Value = Final Projected Year Cash Flow X (1+Long-Term Cash Flow Growth Rate)/(Discount Rate – Long-Term Cash Flow Growth Rate)

Terminal Value = 20 X (1+0)/(0.15 - 0)

Terminal Value = 133.3.

Alternate simpler formula would be,
Stock Value (P) = D/ (K-G)
Where:
D = Expected dividend per share one year from now
k = Required rate of return for equity investor
G = Growth rate in dividends (in perpetuity)

(http://www.investopedia.com/terms/g/...#axzz1sK3yKed6)

Stock Value (P) = 20/(0.15 - 0)
Stock Value (P) = 133.3