HDTutorial
EN

Playback starts YouTube’s embedded player (privacy-enhanced mode).

How to Find the Intrinsic Value of a Stock (Quickly)

4,595 views October 8, 2020 19:08

Watch on YouTube
ChannelStock Compounder - Brad Kaellner

Description from the creator

How to find the intrinsic value of a stock // In this video I use what I've learned from @PhilTownRule1Investing and @HamishHodder to quickly calculate the fair value of a stock, and what I'd be happy to pay at a 50% margin of safety. We only need 3 inputs... Earnings per share (TTM), earnings growth rate for the next 10 years, and future Price to earnings (P/E) ratio. I'll be using Facebook (FB) stock and Google (GOOG) stock as examples to see how their current price compares to intrinsic value.

Here is the link to my spreadsheet: docs.google.com/spreadsheets/d/1yDaAr6ZmHyHeNdl…

Here is the growth rate calculator that I use to determine equity growth rate: moneychimp.com/calculator/discount_rate_calcula…

For equity growth... Enter (earliest year equity / shares outstanding) in Present Value. Enter (most recent year equity / shares outstanding) in Future Value. Enter number of years between them in Years. Use the compound annual growth rate as your earnings growth rate, assuming it's also a reasonable rate for the next 10 years.

Do you use this method for determining intrinsic value of a stock? Let us know in the comments!

About this tutorial

Stock Compounder - Brad Kaellner published this 19:08 video tutorial on October 8, 2020. It has been watched 4,595 times on YouTube.

Category
Education
Duration
19:08
Published
October 8, 2020
Views
4,595
Likes
125

Tags

Share

This tutorial in other languages