How To Calculate Intrinsic Value (Full Example)

could you explain the multiples part as im still not sure how do i find multiples of a stock do i google it or is there a formula

Calculating the Intrinsic Value or DCF is way too time consuming for the average retail investor. I've found metrics such a EV/EBIT, ROE and Debt/Mcap to be just as useful and come to conclusion of a company in seconds.

how did he get 6% for the 5-10 year growth?

Looking at WEB the cashflow growth rates are N/A. How do you calculate it when it reads NA?

Where is the spreadsheet wanted to download

Great video

Literally what i needed to learn even more! Thank you!

Is there a way to download and edit this excel table please?

thank you i was trying to find an error in my spreadsheet and thanks your XML i can find it and understand the reason i was wrong, great video

Super video! Where did found that multiple of 20 used on Terminal Value cell? (Cell M6)

so is the price that comes out the price i should buy at

i just don’t know how you got the terminal value

How did you get Present Value (yearly)?

Thanks a lot, Mr Cooper. it was very useful.

gurufocus requires a membership now so I cant use it. How else can i still calculate ?

what is that cash flow multiplier ?
apple Current cash flow multiplier is 26.9 so i'll choose 20.
Where did that 26.9 come from ?

Thanks for the video. How come you don't count in or mention a margin of safety? I see other investors and experts recommending and praising a solid margin of safety after calculating the intrinsic value, to give a buffer if you're wrong about the futute?

How do you all determine your appropriate discount rate?

My p0rtfolio is plummeting significantly, I’ve lost about $320k within a few months and I'm not confident about picking st0cks anymore. Are there really no other options for me to gain from the stock market?

Great and practical instructions. I have a question though. What if the free cashflow in Column TTM is negative? Many thanks,

Hey, where is the spreadsheet you mention? I cannot find it. Not certain how you came up with the figures you came up with on row 7 (B7 through K7)

How did you determine "the Present Value (Stock)"

I’d recommend taking the numbers from the video and searching “dcf calculator”. Try out a bunch of them until one spits out the correct answer, then book mark it and use it, much quicker. Also, Warren Buffet said he uses the discount rate as an opportunity cost calculation, and uses the long term treasury bond rate for it. You then take the calculator answer , and divide it by the share price of the business you’re looking at to see what your total return would be over the time period you used.

No. Warren Buffett bought Apple much higher prices than USD 50.

Nice video but I like using the PPS or BVPS.

Really enjoyed the video! How did you arrive at 8 and 6% for growth rates in the future? Also, where do you get the cashflow multiple?

Test

Why is the present value of the terminal value calculated using 11 periods (years)? Shouldn't it be 10 years?

I just watched your video and I'm all out of free searches on gurufocus :/

Is there a formula that does what the spreadsheet does?

Your calculation of the intrinsic value overlooks essential determinants of the actual value... the way you calculate it, you are definitely too high and that means you are living dangerously. Plus, this guru thing is more expensive than free alternatives... save yourself the product placements

Why are you not using a terminal growth rate % instead of a selling multiple..

I feel investors should focus on under-the-radar stocks, considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises plummeting stocks that were once revered. I don't know where to go here out of devastation.

Don’t tell anyone to do this for nividia. That stock should be 450/share but is growing like crazy

unable to understand why you took 1.08 and 1.06 ?

I've tried to use it, however it's "view only" document. Is it just me ?

This video ison point i was able to confri. This method watching a warren bufet interview THIS IS REALLY GREAT STUFF MATE 🔥🔥🔥

You can't estimate future cash flows just by looking at past cash flows. You have to know more about the business to estimate future cash flows. Things change all the time.

Where does the 6% growth from 5-10 yrs come from?

You are expressing FCF as a dollar figure. Everywhere I look, FCF is expressed as a percentage. How do we turn that percentage into a dollar figure like you have here. Or vice versa. Assuming I don't have access to the website you pulled this FCF figure from??

Why are you choosing 10 years? Does the fair value change if you choose 20 or 30 years?

And in case we don't have your spread sheet, what's the formula for intrinsic value?

99 percent of Warren Buffett's thinking about possible investments "often" revolves around qualitative measures, not quantitative. Qualitative measures are important, but they are the easiest part for Warren.

There are a lot I say to cook up time to be motivated ❤❤🎉🎉

Very helpful video and s/sheet! thanks

FRIENDS, THINK CAREFULLY! At the end of 10 years the future value of one share is shown to be $219; that's all you can sell The present value is shown to be $77, so buy at any lower price. Ask how can the present value of 10 years of future Cash Flow safely increase the buy price to anything under $126? That requires the price to be $350 for success. Most calculations reduce the $77 Buy Price by a safety factor to somewhat less than $77. Would Warren Buffett really buy at $219? Is this really his method?