Intrinsic Value Calculation

If interested, check this calculator I created to estimate the intrinsic value of a company.

https://www.quantmill.io/intrinsic-value-calculator/

The formula is quite simple, discount future Dividends + Book Value using government yield. Itā€™s subjective, therefore shouldnā€™t be used as a single factor when determining what companies to invest in.

*From the 1993, Berkshire Hathaway Letter. *
ā€œIntrinsic value is a present-value estimate of the cash that can be taken out of a business during its remaining lifeā€ . Warren Buffet, Chairman's Letter - 1993

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Thanks @adavid. Very cool stuff.

Iā€™m re-posting some of the other stuff here to some people, so we can build a bigger picture. Weā€™re all learning constantly.

And, of course, thereā€™s no right or wrong or one way to get the intrinsic value. But knowing the fundamentals helps.

Here is Professor Damodaranā€™s free DCF app for iOS - yā€™all should try it:

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Thanks.

The tool also forces me to look at the number of shares of a company in the past. Step 3 and Step 5.

I always avoid companies that are ā€œprinting / issuingā€ too much shares through Warrants and Convertible Debt. We see this a lot with AIM and penny stock companies.