How to Calculate Intrinsic Value (Apple Stock Example)
Today we break down how to calculate the intrinsic value of a stock the way Warren Buffett does it using Apple stock as our example. The discounted present value of future cash (DCF calculation) method is the gold standard for valuation.
This AAPL Stock Analysis was done at the end of September 2020.
In this video, you will learn about: (1) estimating the growth of future earnings, (2) calculating the present value of those future earnings, (3) calculating the present value of those earnings and totaling it up to find the sum of the present value of all the future earnings - in other words, the intrinsic value. Then (4) I show you the IRR formula and how it can be used instead so that you're calculating for the discount rate rather than your annual rate of return rather than the present value.
👍 Please like the video 👍
❤️ Support the Channel: https://www.youtube.com/channel/UC8hyOJoF1gS_uGUL5uQqRhg/join
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💰Start investing now: https://richardlinks.com/M1-Finance
🇨🇦 Best Canadian brokerage: https://richardlinks.com/Questrade
📊 Stock Screener I use: https://richardlinks.com/GuruFocus
📈 Stock Screeners that are good and have free versions:
➜ https://richardlinks.com/TIKR
➜ https://richardlinks.com/Finviz
📚 Best Investing Books:
➜ https://richardlinks.com/Little-Book-That-Beats-The-Market
➜ https://richardlinks.com/The-Outsiders
➜ https://richardlinks.com/100-Baggers
➜ https://richardlinks.com/Complete-Investor
➜ https://richardlinks.com/Richard-Wiser-Happier
➜ https://richardlinks.com/Dhandho-Investor
➜ https://richardlinks.com/Tao-Of-Charlie-Munger
➜ https://richardlinks.com/Complete-Financial-History-of-Berkshire
🙋♂️ Watch Next to Keep Learning (YouTube Playlist):
➜ https://www.youtube.com/watch?v=R98EpiTtzI0&list=PLu59mM1CZTBs6BlQGueRfTv47cqB_4cm-
WATCH NEXT:
How Stock INVESTING works (not trading or speculating)
https://www.youtube.com/watch?v=R98EpiTtzI0&list=PLu59mM1CZTBsSpc9RolmuC9xUsKxFedhX
Timing the Market | When to Invest and When to Wait (Big Surprise in Here)
https://www.youtube.com/watch?v=BsJqV0MthUg&list=PLu59mM1CZTBsSpc9RolmuC9xUsKxFedhX
Stock Investing for Beginners (easiest way for most people)
https://www.youtube.com/watch?v=n9BVsvlGUC0&list=PLu59mM1CZTBsSpc9RolmuC9xUsKxFedhX
How to Become a Billionaire (or just get filthy rich)
https://www.youtube.com/watch?v=gepm_ywcmKI&list=PLu59mM1CZTBsSpc9RolmuC9xUsKxFedhX
Exactly When to Sell a Stock
https://www.youtube.com/watch?v=hdcQu2qbF38&list=PLu59mM1CZTBsSpc9RolmuC9xUsKxFedhX
"Investing" in Non-productive assets (Pokemon Cards, Bitcoin, etc.)
https://www.youtube.com/watch?v=nSTqxID7Hrk&list=PLu59mM1CZTBsSpc9RolmuC9xUsKxFedhX
Why Stocks Go Up and Down
https://www.youtube.com/watch?v=h93RCtKFk0I&list=PLu59mM1CZTBsSpc9RolmuC9xUsKxFedhX
TIMESTAMPS
00:00 How Warren Buffett Calculates Intrinsic Value
00:29 Apple stock Example
05:53 Discount Rate and Present Value
08:56 Changing growth estimates
10:24 Net Present Value and the IRR Formula
16:11 The value of a stock re-cap
18:37 Buffett Clip Talking on intrinsic value
20:30 Charlie Munger Talking on using a formula
22:34 Buffett and Munger on how many years to go out
Special thanks to my incredibly beautiful, smart, and creative girlfriend, Stephanie, for her editing wizardry and creative insights and ideas. Although you do not see her speaking to you in the videos, believe me, she has poured her heart and soul into making this video and the videos on this channel. It's been a 50/50 effort. I don't want to even imagine what these videos would look like without her hard work and creative insights. Thank you.
Disclaimer:
These youtube videos and content are for entertainment purposes only. If stocks or companies are mentioned, Richard may have an ownership interest in them -- DO NOT make buying or selling decisions based on Richard’s videos. All information contained herein should not be construed as anything other than an opinion for entertainment purposes only. Information being provided may be outdated or inaccurate; it is your responsibility to verify all information.
No financial advice is being given nor is any other advice of any kind. You should consult with a qualified professional where appropriate and before any action is taken on this video. No liability or damages shall take place because of this video and/or content.
There is no express or implied representations or warranty with respect to the accuracy or completeness of the content of the videos, including any content, description, links, or resources shared, including those by third parties. Furthermore, all parties specifically disclaim any and all express or implied warranties of merchantability or fitness for a particular purpose. By watching this and all related videos, you agree to be bound by this disclaimer.
#WarrenBuffett #IntrinsicValue #ValueInvesting
Видео How to Calculate Intrinsic Value (Apple Stock Example) канала Richard Hopkins
This AAPL Stock Analysis was done at the end of September 2020.
In this video, you will learn about: (1) estimating the growth of future earnings, (2) calculating the present value of those future earnings, (3) calculating the present value of those earnings and totaling it up to find the sum of the present value of all the future earnings - in other words, the intrinsic value. Then (4) I show you the IRR formula and how it can be used instead so that you're calculating for the discount rate rather than your annual rate of return rather than the present value.
👍 Please like the video 👍
❤️ Support the Channel: https://www.youtube.com/channel/UC8hyOJoF1gS_uGUL5uQqRhg/join
➡️ JOIN OUR MASTERMIND FACEBOOK GROUP: https://www.facebook.com/groups/intelligentstockinvestors
💰Start investing now: https://richardlinks.com/M1-Finance
🇨🇦 Best Canadian brokerage: https://richardlinks.com/Questrade
📊 Stock Screener I use: https://richardlinks.com/GuruFocus
📈 Stock Screeners that are good and have free versions:
➜ https://richardlinks.com/TIKR
➜ https://richardlinks.com/Finviz
📚 Best Investing Books:
➜ https://richardlinks.com/Little-Book-That-Beats-The-Market
➜ https://richardlinks.com/The-Outsiders
➜ https://richardlinks.com/100-Baggers
➜ https://richardlinks.com/Complete-Investor
➜ https://richardlinks.com/Richard-Wiser-Happier
➜ https://richardlinks.com/Dhandho-Investor
➜ https://richardlinks.com/Tao-Of-Charlie-Munger
➜ https://richardlinks.com/Complete-Financial-History-of-Berkshire
🙋♂️ Watch Next to Keep Learning (YouTube Playlist):
➜ https://www.youtube.com/watch?v=R98EpiTtzI0&list=PLu59mM1CZTBs6BlQGueRfTv47cqB_4cm-
WATCH NEXT:
How Stock INVESTING works (not trading or speculating)
https://www.youtube.com/watch?v=R98EpiTtzI0&list=PLu59mM1CZTBsSpc9RolmuC9xUsKxFedhX
Timing the Market | When to Invest and When to Wait (Big Surprise in Here)
https://www.youtube.com/watch?v=BsJqV0MthUg&list=PLu59mM1CZTBsSpc9RolmuC9xUsKxFedhX
Stock Investing for Beginners (easiest way for most people)
https://www.youtube.com/watch?v=n9BVsvlGUC0&list=PLu59mM1CZTBsSpc9RolmuC9xUsKxFedhX
How to Become a Billionaire (or just get filthy rich)
https://www.youtube.com/watch?v=gepm_ywcmKI&list=PLu59mM1CZTBsSpc9RolmuC9xUsKxFedhX
Exactly When to Sell a Stock
https://www.youtube.com/watch?v=hdcQu2qbF38&list=PLu59mM1CZTBsSpc9RolmuC9xUsKxFedhX
"Investing" in Non-productive assets (Pokemon Cards, Bitcoin, etc.)
https://www.youtube.com/watch?v=nSTqxID7Hrk&list=PLu59mM1CZTBsSpc9RolmuC9xUsKxFedhX
Why Stocks Go Up and Down
https://www.youtube.com/watch?v=h93RCtKFk0I&list=PLu59mM1CZTBsSpc9RolmuC9xUsKxFedhX
TIMESTAMPS
00:00 How Warren Buffett Calculates Intrinsic Value
00:29 Apple stock Example
05:53 Discount Rate and Present Value
08:56 Changing growth estimates
10:24 Net Present Value and the IRR Formula
16:11 The value of a stock re-cap
18:37 Buffett Clip Talking on intrinsic value
20:30 Charlie Munger Talking on using a formula
22:34 Buffett and Munger on how many years to go out
Special thanks to my incredibly beautiful, smart, and creative girlfriend, Stephanie, for her editing wizardry and creative insights and ideas. Although you do not see her speaking to you in the videos, believe me, she has poured her heart and soul into making this video and the videos on this channel. It's been a 50/50 effort. I don't want to even imagine what these videos would look like without her hard work and creative insights. Thank you.
Disclaimer:
These youtube videos and content are for entertainment purposes only. If stocks or companies are mentioned, Richard may have an ownership interest in them -- DO NOT make buying or selling decisions based on Richard’s videos. All information contained herein should not be construed as anything other than an opinion for entertainment purposes only. Information being provided may be outdated or inaccurate; it is your responsibility to verify all information.
No financial advice is being given nor is any other advice of any kind. You should consult with a qualified professional where appropriate and before any action is taken on this video. No liability or damages shall take place because of this video and/or content.
There is no express or implied representations or warranty with respect to the accuracy or completeness of the content of the videos, including any content, description, links, or resources shared, including those by third parties. Furthermore, all parties specifically disclaim any and all express or implied warranties of merchantability or fitness for a particular purpose. By watching this and all related videos, you agree to be bound by this disclaimer.
#WarrenBuffett #IntrinsicValue #ValueInvesting
Видео How to Calculate Intrinsic Value (Apple Stock Example) канала Richard Hopkins
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