Thank you so much for the video, i read the book but i was so overwhelmed with all the information. I came across this and have done it twice to companies on my list that i was going to invest in... glad i didnt!
It's a nice formula from Phil Town, but you may miss some opportunities with businesses that have negative book value. I find it useful to use this valuation formula plus other sites like Simply Wall Street and Alpha Spread to come up with an average sticker price.
Awesome, I am sure you will get great investing insights from this book. Phil describes everything in a very easy to understand language, no complicated financial jargon.
Read the book but this easy and clear description helped to settle in the thoughts and showed also the websites where the data can be picked from, Very useful and a quality video. Thanks a lot. Will now see al other videos on the Chanel :)
Thanks for this video. I have watched a few from others. Yours was very well done. I will watch more for you in the future. Is there a reason that you used the TTM of $45.05 rather than the $41.32 from the year 2020? Using 41.32 would give a different answer. I understand we want current numbers but we are using 8 years in the calculation. do you think for safety reasons we should just use the 2020 numbers? I am currently reading his book but find it really helpful to see these calculations done in front of me. Again thanks for taking the time to post this information.
I am really glad that you like my content here. Regarding the calculation, I was just giving an example, I would actually recommend using 2020 numbers. And try to be as conservative as you can so always use lower numbers.
One variable that is a part of the intrinsic value calculation changes every quarter- the EPS for the trailing twelve months. So I'd recommend calculating intrinsic value after every quarterly earnings release.
Hi,are these metrics Future growth rate % and Future P/E available in yahoo finance?could you show me? what is future P/E ,why is it important , which number is good ?Thanks
You don't even have to do this calculation to get the same thing. Much simpler and quicker to just use earnings yield + growth. I find this allows me to do it much quicker in my head. For example, a TTM PE of 20 is an earnings yield of 5%. If you expect earnings to grow at 10% annually, that's a 15% gain for you as an owner
I have watched a few of your videos, loved them. Keep up the awesome work. I stopped making videos, want to focus on investing. I realised making videos in addition to all the investment analysis and reading investing books was becoming a bit too much. Might come back at some point, no plans as yet.
I just subscribed and hit the bell and like button. I was wondering if you can do analysis on verizon (VZ) also what is your opinion of using sites like simply wall to determine valuation
Hi Dennis, thanks for subscribing! I am analysing Buffet's recent moves in my next video. I will cover VZ in that video. Buffett started VZ as a new position recently. Simply wall is OK, their valuations tend to be on the generous side, I like websites that have conservative valuations. For this reason I prefer Morningstar, but you need a premium account for accessing their valuation data.
Hi Alex, I have this method works well for many companies but if the companies have had inconsistent earnings growth it doesn't work accurately. That's why I generally use multiple different ways of calculating intrinsic value. I use this one often: www.buffettsbooks.com/how-to-invest-in-stocks/advanced-course/lesson-35/ This is the discounted cash flow so instead of estimating future earnings, here you will estimate future cash flows and then discount them back.
I read the book and found this video extremely helpful to walk me thru an example using Rule #1 calculators to determine MOS price. Thank you!
Thank you so much for the video, i read the book but i was so overwhelmed with all the information. I came across this and have done it twice to companies on my list that i was going to invest in... glad i didnt!
It's a nice formula from Phil Town, but you may miss some opportunities with businesses that have negative book value. I find it useful to use this valuation formula plus other sites like Simply Wall Street and Alpha Spread to come up with an average sticker price.
Bro no joke I’m reading that book right NOW. On page 87. Love it so far.
Awesome, I am sure you will get great investing insights from this book. Phil describes everything in a very easy to understand language, no complicated financial jargon.
The gratest investing book I ever read... 👍
Read the book but this easy and clear description helped to settle in the thoughts and showed also the websites where the data can be picked from, Very useful and a quality video. Thanks a lot. Will now see al other videos on the Chanel :)
Great review 😂
Great Author 😂❤
Great work. Entire book @ 9.44 mins🙏
Thank you so much for this video. Had a hard time understanding word for word in chapter 9. Needed to see another example
Great work - thanks
Thanks for this video. I have watched a few from others. Yours was very well done. I will watch more for you in the future. Is there a reason that you used the TTM of $45.05 rather than the $41.32 from the year 2020? Using 41.32 would give a different answer.
I understand we want current numbers but we are using 8 years in the calculation. do you think for safety reasons we should just use the 2020 numbers?
I am currently reading his book but find it really helpful to see these calculations done in front of me.
Again thanks for taking the time to post this information.
I am really glad that you like my content here. Regarding the calculation, I was just giving an example, I would actually recommend using 2020 numbers. And try to be as conservative as you can so always use lower numbers.
Ive read the book, but im having trouble locating the big five numbers… do you have a video on that?
Great content. Keep up the good honest work. Looking forward to more such videos from you.
Thanks Pranav! Please stay tuned more to come
Gr8 work
How frequently should you calculate the intrinsic value ? I think it's annually but would appreciate your input
One variable that is a part of the intrinsic value calculation changes every quarter- the EPS for the trailing twelve months. So I'd recommend calculating intrinsic value after every quarterly earnings release.
Thanks!!! Really helped!
Hi, why overdiversify damage the returs?
Hi,are these metrics Future growth rate % and Future P/E available in yahoo finance?could you show me? what is future P/E ,why is it important , which number is good ?Thanks
You don't even have to do this calculation to get the same thing. Much simpler and quicker to just use earnings yield + growth. I find this allows me to do it much quicker in my head.
For example, a TTM PE of 20 is an earnings yield of 5%. If you expect earnings to grow at 10% annually, that's a 15% gain for you as an owner
is the metric PE (FWD) the same as future PE ?
Great job bro👍🏽
what does BVPS show? where can i find it in yahoo finance?
Hi, I did not find something like equity growth rate in yahoo finance, could you show me?txx
how to calculate future growth rate in yahoo finance?txx
looks like this facebook trade didnt work out. Is that correct?
Any rethought on the fb valuation you did?😅
Great video. We love Phil Town and his methods of calculating intrinsic value. We just came across your channel, are you still making videos?
I have watched a few of your videos, loved them. Keep up the awesome work. I stopped making videos, want to focus on investing. I realised making videos in addition to all the investment analysis and reading investing books was becoming a bit too much. Might come back at some point, no plans as yet.
Thanks@@investinguntangled1968 We'll keep our eye out for your new videos if you decide to bring the channel back!
Is this method called Discounted Cash Flow method ?
What are other methods to calculate intrinsic value of a stock ?
I just subscribed and hit the bell and like button. I was wondering if you can do analysis on verizon (VZ) also what is your opinion of using sites like simply wall to determine valuation
Hi Dennis, thanks for subscribing! I am analysing Buffet's recent moves in my next video. I will cover VZ in that video. Buffett started VZ as a new position recently.
Simply wall is OK, their valuations tend to be on the generous side, I like websites that have conservative valuations. For this reason I prefer Morningstar, but you need a premium account for accessing their valuation data.
great stuff. can you please do regular portfolio updates?
Hi Mitesh, I haven't done a portfolio video yet but will do it soon. Thanks for the suggestion.
When you calculate the equity the growth time was longer than 8 years, no?
Not sure if I do something wrong but AAPL sticker price comes to 23 and F to negative if calculated using this method?
Hi Alex, I have this method works well for many companies but if the companies have had inconsistent earnings growth it doesn't work accurately. That's why I generally use multiple different ways of calculating intrinsic value. I use this one often: www.buffettsbooks.com/how-to-invest-in-stocks/advanced-course/lesson-35/
This is the discounted cash flow so instead of estimating future earnings, here you will estimate future cash flows and then discount them back.
Morningstar doesn’t offer me a key ratio drop down?
ruclips.net/video/QR5nVGClD1I/видео.html
Unable to use the Margin of Safety toolbox. Looks like one needs to subscribe to use the toolbox.
Huge loss if you bought at 250
He don't go to gym?