Calculate the Intrinsic Value of a Stock in 2024 (Full Meta Stock Example)

Intrinsic value is one of the key concepts to value investing. We calculate this figure as it represents the "true value" of a stock, without the market noise. The philosophy of calculating intrinsic value revolves around the belief a stock's price is a function of the future cash it provides to its shareholders. We can simply take Meta's projected free cash flow (cash flow from operating activities less maintenance capital expenditures), and discount it back to the present value at a prescribed discount rate. Once we subtract their net debt, and apply a margin of safety, we're left with our view of Meta's true value. Comparing this to the market capitalisation of Meta, we can see whether the market agrees or disagrees with our analysis. If our intrinsic value is less than the market capitalisation, this isn;t a good investment. If the opposite applies, we might have a good opportunity to invest at a good price.
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► 0:00 Intro
► 0:24 Intro to Intrinsic Value
► 2:09 Spreadsheet Calculations
► 9:52 Outro
Disclaimer:
I am not a financial adviser. This video is for education and entertainment purposes only. Seek professional help before making any investment decision.
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[@EddieHJJJ]

Cheers Brent. Well explained and good video!

[@BrentColeman]

Glad you enjoyed it!

[@UltimatePokeGamer7]

How did you get the 2.5B outstanding shares figures from the highlighted block? 8:28

[@BrentColeman]

Heya! Adding the Class A (2,211M) and B (0.350M) shares outstanding from Meta's 2023 Annual Report, page 89

[@Tony_jade]

excellent video!

[@BrentColeman]

Thanks! Appreciate it!

[@PowerboatTraining]

Hey mate, how about doing some investigative financial journalism? I bet your channel would blow up cause NZ sure is lacking in quality journalism and some good niches being taken by influencers.👍

[@BrentColeman]

Heya! Please let me know any areas you think could be interesting to explore! Problem in NZ I'd expect is mostly saying "we're getting ripped off" lol

[@PowerboatTraining]

Maybe ask why no more trains use the Whangarei / Auckland track. @@BrentColeman

[@PowerboatTraining]

@@BrentColeman Maybe look into Fuel prices, because they are being manipulated perhaps also what NZ consequences of Marsden point closing - explain we now have potholes because low grade bitumen import etc. Even how we are being screwed by electricity prices. How about how much is being extorted by council contractors, or anything like that really. No financial journalists interested in keeping companies that are extorting us honest. I reckon theres a nice there for someone smart and diligent

[@kaumallose6198]

Hi thanks for youe video. Is there any way to get that spreadsheet?

[@Dee-nb4cg]

Great video

[@BrentColeman]

Glad you enjoyed it!

[@vidya014]

Can the growth rate support the P/E?

[@ronniehughes782]

Promo'SM