How I Calculate the Value of a Stock! [2020]

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Disclaimer:
The information in this video is general information only and should not be taken as constituting professional advice from Hamish Hodder.
Hamish Hodder is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances.
Hamish Hodder is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this video.

[@humbertocabrera4379]

I'm part of the platform already. I was a little bit reluctant to get in at the beginning, but after being using it for 4 months now I can tell others that it is worth it. Hamish goes so deep in the examples that you can get a great understanding in how to evaluate a company. I recommend the platform 100%.

[@HamishHodder]

It's been great working with you!

[@itzikhillel]

I'm using the spreadsheet as explained in a few videos, still not clear to me how to "Estimate" the growth rate, and even on ur facebook video you get a very weird number although you entered real data from the 10K. I am getting super low stock prices, its not difficult to say "well if you would buy this 60$ stock in 20$ you are going to make money. I watched an endless amount of your videos and there is zero explanations on how to do 1 thing from A to Z, I understand you want to promote your community but to be honest, this does not encourage me cus I just not able to make sense of the spreadsheet even though I followed all the steps exactly as you are showing and entering the exact numbers.

[@denimru4637]

I have the same question. Do we use an average of all 4 (Sales, EPS, Equity, FCF) over the last 10 years to get our overall FGR (estimated Future Growth Rate)?

[@alexkodwiw2640]

does perspective make a difference? From a buyers perspective the value of the business should be as low as possible, correct? Its when you are the one selling that you hope for a much higher figure. Correct?

[@littalwabbit]

Could you do a video where you find the data and fill in the template from scratch? Would be a more intuitive way to see the way it's used, and possibly (such as in my case) clear up some question marks.

[@tash5897]

I have been a member of the platform since the very beginning and I can confidently say that my skills and expertise in this area have grown so much. Hamish is so helpful and always available to answer personal questions. The reports are very detailed and the live streams are so informative even if you weren’t able to get on live. I would 100% recommend this platform to anyone who wants to become a better investor. Thanks Hamish for all of your help

[@HamishHodder]

I appreciate the feedback! It's been great working with you :D

[@HONGYI-vr1wb]

why not using free cash flow on the cash flow statement? will that be more accurate without assuming maintainance capex?

[@steffernandes]

Great educational video! In the DCF tab of your spreadsheet, how are you adjusting for a company's leverage when calculating buy price? I'snt the present value of CF4O the enterprise value, not equity value?

[@stoyanminev1714]

Hi, Hamish, I’ve watched almost all of your videos and in the most recent ones you’re beginning to talk more and more about the services you’re selling. I really hope that this channel will not turn to a selling portal or marketplace of your paid services. I mean this good. The channel grew because you weren’t trying to sell us anything, at least until the last couple of months. Instead of advertising your paid services in this video you could have explained for example how the formulas work or what terminal value is by using an example. I hope you understand me right, it’s really a good thought advice from one of your most loyal subscribers.

[@HamishHodder]

Hey Stoyan, thank you so much for the detailed feedback. The past 2 months I have been very involved with my students to improve the learning environment and helping people to the best of my ability, and something I'm learning is that when you focus so much on a particular aspect of your business, it is easy to neglect other aspects. For me this has meant putting KZbin on the back burner, and comments like yours help bring some perspective to what my overall vision is, which is to help as many people as possible, not just those who can afford to work with me closely. My attention to providing value through my youtube content will be improved going into this year and I have a ton of great video ideas that I think will provide lots of value to the viewers. Thanks for watching my videos and supporting the channel, and I look forward to your continued feedback as I make some changes in the future.

[@jordsnel]

How's it Hamish, please explain your calculation of terminal value in the spreadsheet example.

[@HamishHodder]

Yes! future video covering terminal value is coming soon

[@robertochan4001]

Hi Hamish, thank you for the video. I have two questions 1- Why with a growth rate of 9% have a better intrinsic value than 12%? 2- Can you help me to undestand what is the use of the buy price per share, because i've been rewatching the video and still don't understand the concept.

[@hugomeza2910]

Good video! 👍 Can you do a real example on a company using your spreadsheet?

[@HamishHodder]

Yes! Coming out next week :)

[@tkhan6149]

video starts @2:30

[@umeshwijetunga5175]

Hey superb video! I have a question. How do you get the buy price per share? What do you divide it with?

[@vinodthan108]

Hamish, thanks for the update spreadsheet. When I download it to my computer the stock symbol/price is not matching up. Does this only work if online on google docs? (I did download a copy.)

[@HamishHodder]

The formulas only work on Google Sheets. You can download the excel version on my website though: www.hamishhodder.com/spreadsheet

[@surinderhothi3798]

Yes agree 100% really good content, Iam also a.member wish this was available couple of years ago, learning a lot very practical approach thanx hamish

[@TLDWFinance]

Good video. I've been using your spreadsheet and methodology in combination with the principles of Intelligent Investor by Ben Graham and Rule 1 Investing by Phil Town to amazing effect. Thank you again!

[@yubehappy]

Thanks for the video. Can I use the worksheet for ETF like index fund? If yes, what numbers to enter?

[@MehdiSina]

I have predicted this channel after watching your 3rd initial video and you grow this channel rapidly. Weldon on achieving 18K plus sub.

[@TLDWFinance]

I liken Hamish to being to Value Investing what Joseph Carlson is to Dividend Investing. Myself, I'm somewhere in between as I have both types of accounts. Roth IRA is a dividend growth blend: m1.finance/Zz4_PPoNu And my taxable account is principally all about value investing/capital growth: m1.finance/MRtuiRNhZ I can see why Warren Buffett stated 50% growth in a year is absolutely attainable once you know what you're doing and had he not had so many assets under management that's the kind of return he'd be getting. I'm not THAT good, but 45% and 49% respectively is close enough :) To be fair tech is heavily in my circle of competence whereas Buffett has shied away from it until just the last year or two.

[@reubs]

Great video hamish. Can I make a recommendation? You've got to get that intro time down. 2:30 is just too long to get into the meat of the topic. Hope that doesn't come across as harsh, I just believe it would improve the quality!

[@HamishHodder]

Thanks for the feedback!

[@PassiveIncomeTom]

*Great breakdown on this Hamish!* 👍

[@HamishHodder]

Thanks Tom!

[@conayoll]

is the growth for an annual basis, or total growth you expect for the duration of holding?

[@zion415]

What do you eat in the morning?

[@marianadavila323]

Thanks for your efforts Hamish. I would love to see more in depth company valuation examples in 2020

[@HamishHodder]

Lots of that coming this year!

[@marcoheuvel1072]

Hey man, I've been watching a lot of your videos and it's really helped me better understand a lot of different areas. I'm wondering, I've seen this commented before, however haven't been able to find an answer: what are some great websites to find raw data of public companies, so that I can easily find the data I need to fill in the spreadsheet? I've been struggling with this for the past few days.

[@jakebarton891]

Great video Hamish, very good simple way of explaining the process!

[@HamishHodder]

thanks!

[@MrStarSkiKid]

“Thou shall not use excel” ~ are you familiar with Mohnish Pabrai’s view of valuations using simple maths I.e. rule of 72 etc. ? What is your view on this ? Thanks 👍

[@HamishHodder]

I think some people are very quick with those kinds of calculations in their heads, but for many people having a spreadsheet saves time and makes investing more accessible. The 72 rule is a fantastic shortcut once you get fast with mathematics in your head!

[@MrStarSkiKid]

I agree you have to be very experienced to be able to do all the numbers in your head!, I like your spreadsheet though plain&simple

[@compound7269]

Hi Hamish. I currently use your spreadsheets to help me calculate intrinsic values of companies on the NZX and I find it extremely useful! I am now expanding into the ASX however I have realised that there are 1000’s of companies to get through (nzx only has 130 odd). Would you be able to do a video on how you manage to pick which companies you begin to analyse. Circle of competence and stock screeners are what I currently use, however I hate leaving stones unturned, also, how do I get over this personally trait as I feel I spend too much time weeding and not enough time digging. Keep up the quality content. Thanks Tim

[@HamishHodder]

great video idea!

[@numienazir]

Are there other methods to determine a shares intrinsic value? If yes, then are they as reliable as this one. And are different variations of DCF model? And which is more accurate

[@aryanverma834]

Is it necessary to enter money in dollars

[@Zyleok]

In the stock analysis spreadsheet on data input where would I be able to find the 5 year low and high P/E ratio? And could you give me an example of Texas roadhouses 5 year P/E ratio so I can use it as reference to find my own as well?

[@kjsandri7204]

Hey Hamish Just wondering what you think of Phil Town's Rule #1 style of investing, it seems you do your valuations a bit differently compared to his books and how he taught his daughter in 'invested'? Cheers

[@HamishHodder]

I think Phil's stuff is fantastic for getting started. In terms of valuation, I think he has attempted to simplify the process so that it is accessible to the mass market, where as I am more interested in valuing a business in the most raw way possible which is ultimately to find the total amount of cash flows

[@kjsandri7204]

@@HamishHodder Cheers, also, why do you only use long term debt and not all debt when using your spreadsheet?

[@earnmyturns6305]

Dividend reinvestment stocks offer DRIP (dividend reinvestment programs). If the dividend is large, like it is for some REITs, the number of shares added with each and every distribution can be substantial. How do I know if the number of shares is inflating faster than the earnings?

[@thenapoleonlover113]

Video starts at 02:30

[@MrDragonheart007]

Hi Hamish, I m from India. Can ur spreadsheet support our stock exchange to value stocks

[@pedrohenriqueperini4347]

Could you speak about A-REITS? It’s a bit hard to find information about REITS in Australia.

[@Davincis_Curiosita]

Could we please see more valuation coverage on Australian shares?

[@HamishHodder]

sure!

[@11111caca]

im not receiving alerts when release a new video, any help would be appreaciated . cheers

[@HamishHodder]

The best way to get alerts is to make sure you have clicked the Bell Icon next to the subscription button!

[@11111caca]

@@HamishHodder Thanks mate, the bell was on "personalised" not sure what does that mean..maybe a preference I need to set or something. changed to ALL and already got notified about ur latest video, thanks for the reply

[@artemijponomariov3747]

Super valuable info. Thanks a lot for your lessons. No one is really showing how to calculate intrinsic value

[@HamishHodder]

Thanks for watching!

[@aussiefinancialjournal6567]

Awesome Hamish, love the video!

[@gedankentanken1759]

I would be exciting if you provide more videos where you go in dept like you just started on your Plattform . Looking forward for more videos like that.

[@christopherovideo3646]

Just get to the point next time

[@user-dm1ov8py5y]

When to start buying stocks during a recession? How to know when to enter and buy on sale without stock continuing to drop?

[@robwhite7976]

Buying during a drop in the stock market will almost always be beneficial, if you buy the shares below market value, even if the stock continues to fall. The reason being you've bought it below the value, so it should rise back to the market price, or go above this after a while.