How to Calculate the Intrinsic Value of a Stock in 2023 (Full Example)

So from there do you divide it by the number of shares outstanding to get the individual share price? So based on this example, the intrinsic share price is about $38 per share before MOS?

How do you translate the intrinsic value to a share price? You divide it by outstanding shares?

The best video I watched on DCF analysis. Clear, crisp, short and complete... nothing more to say. Its ULTIMATE! From here I took 22001 million as the shares outstanding as of 2016 and calculated the share price and got the range as 37.54 - 51.27$ (with hidden treassures included). By considering 30% margin of safety got this price range as 26.26 - 35.91 $. Thank you!

Does somebody have a great excel spreadsheet for this?

whats the difference between a 15% growth rate and a 15% annual return. How is growth rate related to returns?

Why we use cash flow instead of eps, can some one tell me

Such a helpful video but i think you may have made some notation errors at the terminal value part, the values should have been 1.377 Trillion instead of 1,377.02 Trillion

how do you calculate this if the company has no free cash flow?(looking at Shake Shack)

Bro in calculation of terminal value the answer would be $1337.0B instead of $1337.02T🤔

How did you get apple price? To free cashflow as 10?

Why will we sell it at 10 times free cashflow?

the links here aren't working for me.

nice

Thank you so much ur incredibly smart and helpful

Great video mate. Thanks

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i am so confused in the last part. when you have the 580 - 790 evaluation, why does that matter in relation to the market cap of 2016? isn't that 580 - 790 the calculated intrinsic value projection for 2026?

I’m so lost 😂😂 I need a book

Best way to invest.
Dont need the money now 😅, I can wait .
Thanks for the content always well received.

Mind that the table should say $1.377.02T with period, not a comma. Otherwise $1,377.02T means $1.37702 quadrillion

I think you should also subtract any outstanding debt when adding value of cash and investments at the end

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Your finance flow is epic. 💈

Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.

Thanks for a clear explanation & demo! It's rare to find videos or guides which put this together in a simple manner.

@New Money, a question: How would you estimate the value of an ETF? Would you need to check e.g. the top-10 or top-50% of holdings of a fund to understand if the fund is over or undervalued currently, or is there a more straightforward way?

hi, great video, thank you for sharing your knowledge with us. I have only one question, which might sound silly but I don`t get it. To calculate a 15% discount you divide the amount by 1.15 and I am used to calculating it by multiplying the amount by the percentage and them subtract that from the original amount, fer example: 15% of 50,000 is 7,500; 50,000-7,500=42,500. while you did 50,000/1.15=43,478 and we get different answers.

Would not be smarter to use some sthocastic process

this is good for businesses which do not change, but the reason companies such as apple increased it's value is because they innovated and created massive growth that would have been difficult to predict if you didn't know they were going to enter the smartphone market for example

If the stock is overvalued like 20-50% but still has good fundamentals. Is it better just to keep the stock or sell it and wait for a small correction and buy it back?

Following this DCF model, Apple price today would be $84 not $176

As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?

I'm very new to this whole field and I'm a little confused. Okay I understand that the intrinsic value we got in this example was $826B-$1.13B, but how do we apply that numerical value to actual stocks. How to I convert that value into one share to know if a stock is being overpriced

This is gold!!

Instead of adding cash & cash equivalents to the intrinsic value firstly calculated, I would add net debt ( cash & cash equivalents minus short & long term debt).

What's your opinion on that?

thank you for your video, verry helpfull

As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?

How would you calculate the intrinsic value if the free cash flow is negative?

Yoooo amazing content! Had seen your other video (from 3 yrs ago) about intrinsic value and I have honestly found it super useful. This one adds the cash to the business' intrinsic value which is something I didn't know as well.

However, the valuation of the company should only be proceeded when you believe it has great fundamentals, and fully understand its business model, right? Thanks for the video dude ;)

I have just one doubt. How did you actually calculate the terminal value multiplier?

15%=0.15 NOT 1.15

I’m having a really hard time understanding this… How do we apply this method to evaluating the price of a stock we’re buying? And are Graham’s and Lynch’s valuation methods totally different from DCF?

One of my favorite videos

Hi Brandon. I have to say that this explanation is the clearest and easiest to follow I've seen. Cheers mate