Many assumptions made with 'intrinsic value' such as the interest rate to use (for discounting) and you are also trying to project 10 years of earnings growth in the future. These can greatly affect the value you come up with.
a must see video, for every beginners investors. 1,put on your watchlist, only wide moat stocks, growing in the past 15% a year. 2, define it's intrinsic value and update it every 6 moths. 3, buy that's stocks when undervalued by - 30% or more. repeat the process 20,30 years and you will be very rich
spot on example...i chose intc instead of nvda :) i ended up averaging down and closing the position at a small loss. Now i understood things are cheap for a reason most of the time
Thank you Mr. Adam for another wonderful video. By the way, I am currently learning how to trade effectively. While using the trading app, I've come across a feature called a "trailing stop" order which functions similarly to a cut-loss order but without a fixed position. I would greatly appreciate your insights on which type of cut-loss order is more efficient. Thank you in advance for your valuable guidance. ❤❤❤
Formulae says as such - If its not Working (3 Month) then get out and redeploy your Cash. Also means if at a Loss - then also redeploy. Losses can grow!
This might be the best video in terms of explaining how to value a company. Great video! Thanks, Adam! The guys from Everything money could learn a thing or two from you about how to explain these things!!! 🙌🏼
We all know that the growth rates and discount rates used can have a significant impact on the resulting calculation of the Intrinsic Value. I noticed that you have used 6.6% as the discount rate for META. Compared to the current 10 year treasury rate of 4.5%, the total equity risk premium of META is only 2.1% which seems quite low. Since META's Beta is 1.2, that means you consider that the current market risk premium for all Stocks is only 1.75% compared to the historical premium of 5.7%. If you use the higher historical Risk Premium of 5.7%, your discount rate would increase to 11.34%. Under this higher discount rate, what would the intrinsic value for META be? Would it still be undervalued?
Hi Adam, thank you for the video. I'm little confused here. Meta's long term debt as of 3/31/2024 is $18,387 millions and the total debt is $37,633 millions according to the Yahoo Finance. It seems to me you did not add the short term debt to your calculation? If so, what is the amount of the short term debt of Meta. Also what is the reason you did not input $37,633 millions as the total debt.
Market highs can sometimes be followed by corrections, but predicting the timing and extent of it is challenging. I've heard some analysts talk about a 'massive' correction. It makes me wonder if it's time to adjust my €1M portfolios or maybe even consider some defensive investments.
all true but the reality is that in stock picking, to BUY LOW (first step of the process), you need to buy when there is panic in the market, and that takes BALLS of steel. That's why this game of investing "buy low sell high" is a 90% mental game, 10% technical skills (and you only showed the latter in this video). If it were just technical, than everybody would be successful in stock picking.
I agree with you about the meme stocks and how they are lousy companies, but I would add that a meme rally could alter the intrinsic value if the company sells shares at a high price. They can then pay off debt and try to find new ways to reinvent themselves but if the meme rally never happens then it will likely go bankrupt due to debt. I have mainly great companies but with a little extra cash am buying shares of companies that could have a short squeeze since those can be 10 baggers
Hi Adam, How about Lululemon? It was undervalue now base on valuation. ROE, ROIC vs WACC also keep years impove. However due to recent the CPO leave and market post alot negative news about Lulu and Management gv soft forecast cause it share slump from almost $500 to $300. Any opinion or advise for this company? 😉 Thanks in advance
Mr Adam may i know the intrinsic value of Nvidia after it's latest 1st Q 2024 excellent performance yesterday should I hold or should I sell after its price appreciated to USD1037?
This year is clearly going to be more difficult. Reflecting on the past twelve months, my financial decisions proved to be expensive, due to my excessive concern over my portfolio. I battled to decide whether to invest more or become a homeowner. Finally, I decided to sell my investments, only to discover that the house I bought needed more modifications than imagined. It is becoming increasingly unclear how much longer I can navigate these circumstances.
Regarding the in-the-money META covered calls, you can roll them out to another expiration date so you don't have the shares called away. Just an idea if you want to keep the low cost basis of your META shares. Thanks.
Load the Dips using patience for Larger Long-term Gains. FSRN.. Fisker.. Ocean Suv EVs Increasing deliveries and dealerships.. Polestar.... Lillium Evtol Jets...Vev . Vicinity Motors ..Lev..Lion Electric... Tata Motors and more. Thumbs Up video/ comments. Thanks
What would META's intrinsic value be if the calculation is based on 10 yrs worth of earnings? Assuming you only want to hold the shares for only 10 years?
hi Adam, great way to analysis a share May I know it can be applied to the crypto market? it would be great if you can share the calcutalor for crypto also.
