How to Value a Stock! (7 Ways to Calculate Intrinsic Value)

[@Dividendology]

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[@naZ11911]

Wonderful analysis as always

[@Dividendology]

Thank you!

[@Gurgleskletch]

My favorite stock channel. ❤

[@Dividendology]

Wow, thank you!

[@adamfrank66]

Thank you for this! This is exactly what I hoping to get a video about.

[@Dividendology]

You are so welcome!

[@Islandyield]

Thank you for providing us with such incredible value. It is appreciated immensely!

[@Dividendology]

You are so welcome!

[@rosalieroku3818]

What has always bothered me with DCF valuation is that the terminal value dwarfs all the yearly FCF values. Why not just dispense with the 10 year forward estimates and go right to the Terminal Value assumptions? And there, the choice of Perpetual Growth Rate and Discount Rate have a huge effect on TV, yet the reasoning is not rigorous. I can come up with any valuation you want by just having a different "feeling" about what value is appropriate.

[@XanderDDS]

useful video honestly! well done!

[@Dividendology]

Glad it was helpful!

[@Vocas46LP]

1 question about dividend discount model. and i have seen this question in the comments here aswell. How to calculate DDM if the companys dividend growth is (or will be) higher, than their WACC? what should we put there in that case? just some slightly lower number than WACC? then it won't be accurate or will it be?

[@Dividendology]

Nice question. This method of the DDM won't be accurate if the WACC is higher than growth rate. There are other methods of DDM to account for this. One option is using the 2 step DDM. I talk about it in this video: kzbin.info/www/bejne/bZ3WZouObM2Xp9U

[@janbartos4502]

Hi How do you estimate stocks future growth rate? Do you use analysts estimate, past growth or some fundamental analysis?

[@Dividendology]

You should be using all 3. Anything that give insight into future growth.

[@AnxiousJ]

I am using the reverse discounted cash flow analysis to value a stock, and the growth rate projection is pretty negative. (-20%). Does this mean the stock is not relying on the free cash flow as a value of the stock? New to stocks and just want some clarification!

[@Dividendology]

It depends on a few factors. This doesn't necessarily mean the stock isn't relying on FCF, but rather that the expected future FCF is shrinking, which could significantly lower the intrinsic value of the stock in a DCF model.

[@AnxiousJ]

@ interesting! Thanks for the explanation!

[@SmarkInvesting]

One of my favourite channels. Insightful as always ! Thanks to you I've had the confidence to started making my own content!

[@rssharma9]

Great video. I have a comment: Obviously we cannot wait to purchase the shares of any company based purely valuation. If we did that, we will have to wait a long time (like a market correction) to buy. Thanks.

[@briandempsey9367]

does your Tickerdata cover the London stocks as well as European stocks.

[@Dividendology]

It does! You can see a list of all exchanges covered here: tickerdata.com/exchanges

[@JKFROMDAA]

Is it possible to add stock based comp in the FCF metrics - asking as a tickerdata sub

[@Dividendology]

This is a great idea. We will look into this!

[@PatriciaFerreira-qj9ge]

Excelent information😉👌thanks🙏💲

[@thomaswilson2079]

How do you come to a discount rate of 9% for MSFT? Surely a company with solid, reliable income would receive a lower rate of 7 or 8?

[@muhammetshen7493]

does this spreadsheet calculate auto if enter stock name?

[@Dividendology]

Yes. You just insert a few assumptions.

[@Adrian-cn5rk]

Do companies typically state hoe their companies should be valued in their quarterly/annual reports or is it a trial and error thing where you should try different methods

[@RegularJoeKnife]

Valuation is a guess with data but better than a guess without data.

[@CurtisThiron]

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