SR050321
2022-04-26

Intrinsic value formula [Surprised] 

I tried to find out how to calculate Intrinsic value of a company, but it is too complicated, attached the pictures of some formulas [Smile] 

Buffett follows the Benjamin Graham school of value investing. Value investors look for securities with prices that are unjustifiably low based on their intrinsic worth. There isn't a universally accepted way to determine intrinsic worth, but it's most often estimated by analyzing a company's fundamentals. I am not him, i can never understand how he do it,however i trust Warren Buffett abilities and admire him, i bought $Berkshire Hathaway(BRK.B)$and will hold it forever. [Cool] 

Add more when there is opportunity [Happy] 

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Comments

  • trevor_t3
    2022-04-28
    trevor_t3
    I think it is important to know how to calculate intrinsic value if you are picking stocks. For me, I only focus on PS or PE methods. Impossible for me to master all, so I just focus on these two.
    • SR050321: 
      I check PB EPS PE dividend yield, but the event asked why not easy to follow Warren Buffett ? Click n join the event 😊
  • HH浩
    2022-04-28
    HH浩
    It is the cash received by shareholders in their hand that count. Berkshire never pay dividend, how to calculate its intrinsic value? Same theory goes to Gold. It’s a store of value against inflation
    • SR050321: 
      Thank you [Happy][Grin]
    • SR050321: 
      Berkshire is the investment vehicle so the event asked why not easy to follow WB ? This is the reason why difficult coz no one formula suit for all to justify intrinsic value of the company. 😊
    • HH浩ReplySR050321: 
      Well said
  • Wayneqq
    2022-04-27
    Wayneqq
    There are many methods to calculate intrinsic values.. no one size fits all.. but this is only one aspect.. There are other more inportant criteria like moat and management of thr company
    • WayneqqReplySR050321: 
      [Strong]
    • SR050321ReplyWayneqq: 
      [ShakeHands] thank you [Smile]
    • WayneqqReplySR050321: 
      Yeah.. the game is rigged against retail investors.. Size matters..
    • WayneqqReplySR050321: 
      Very true.. for retail investors.. we need a bit of luck too becos we dun have an array of analysts to help us sieve through all the companies out there to find the gem..
    • SR050321ReplyWayneqq: 
      You are right sure have analyst etc and for big investor once news of holding out, ppl will follow, more demand drive the price up, the richer will get richer 😅
  • angstg
    2022-04-30
    angstg
    Intrinsic Value is just one out of many elements to use when picking stocks to invest as well as guidance on entry point. It cannot be the only element to use.
    • SR050321: 
      You are right, the article for event why not easy to follow WB steps, so i point out on this, of course this is not the only element, you may click the link n join the event 😊
  • tickletigger
    2022-04-28
    tickletigger
    interesting! would be keen to understand which kind of investments are suitable in applying the formula !
    • SR050321: 
      [Happy] i think no easy to apply coz not easy to guess annual growth rate of dividend
  • Oldhead
    2022-04-28
    Oldhead
    Calculate intrinsic value is too theoretical because of the validity of the assumptions made.
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