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  1. mohammedhashertk

    mohammedhashertk New Member

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    Since a week when I started to learn to find Intrinsic value of a company, there are lots of doubts arising.
    For a complete beginner, how to learn that? There are different methods. Shabbir Sir's video helped me to get some insights but as I dwell further it goes deeper and deeper so many confusions started to arise. So, what's a proven way to find intrinsic value according to Indian market standards?
     
    mohammedhashertk, Mar 21, 2023 at 12:45 AM
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  2. shabbir

    shabbir Administrator Staff Member

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    shabbir, Mar 20, 2023 at 7:33 PM
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  3. shabbir

    shabbir Administrator Staff Member

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    The business analysis of Divis Lab in a 3-step process and understand why the share price of Divis Lab keeps falling.

    Continue reading...
     
    shabbir, Mar 19, 2023 at 12:03 PM
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  4. shabbir

    shabbir Administrator Staff Member

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    shabbir, Mar 19, 2023 at 11:24 AM
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  5. shabbir

    shabbir Administrator Staff Member

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    shabbir, Mar 12, 2023
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  6. shabbir

    shabbir Administrator Staff Member

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    shabbir, Mar 10, 2023
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  7. shabbir

    shabbir Administrator Staff Member

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    Yes.

    It fits every stock. At times we expect good returns when investing in low PE stock but if you are not able to sell it at higher PE and if the company doesn't have profit growth, you will not make much returns from the investment.
     
    shabbir, Mar 6, 2023
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  8. emailsaravanans

    emailsaravanans Active Member

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    Okay. It is purely based on our future expectations on the company growth. When the future growth and future PE are expected to be higher, then we need to look out if the current price is fair using the excel sheet. That gives us the confidence when to invest and what levels.

    Let me know if my understanding is correct. I believe the sheet is more fit for growth stocks right?
     
    emailsaravanans, Mar 6, 2023
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  9. shabbir

    shabbir Administrator Staff Member

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    Yes. If you don't expect the profits of the company to grow inline with your growth expectation, then the PE should expand. If you are investing in a company that is already trading at a fair PE, then you have to rely on profit growth to give you the returns you want.

    If the company is able to do consistent profit growth of 16% and is a midcap/smallcap company at this moment, then in 10 years it will be trading at higher PE multiple for sure. This is how I see the behavior of the market.

    The excel will share based on your inputs. Expect more growth and expect to sell at double the PE from current price and you will see a different picture of fair price. However, when you are doing those kind of predictions, you have to add a lot of margin of safety.
     
    shabbir, Mar 6, 2023
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  10. emailsaravanans

    emailsaravanans Active Member

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    Thanks I understand. Just want more info for educative purpose. Are you saying our expected return should always be less than expected growth?

    I put 16% because their profit growth for last 3 years has been 16%. Also the PE range they are operating is around 22-25 and hence I expect it to sell at 22 PE.

    I am just trying to figure out if the current price level is at fair valuation. But, the excel sheet says otherwise. What parameters that I missed makes STYLAM a fair valuation?
     
    emailsaravanans, Mar 6, 2023
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  11. shabbir

    shabbir Administrator Staff Member

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    I don't expect the price to go down. Also, you may not find some great business at a fair price as well.
     
    shabbir, Mar 5, 2023
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  12. shabbir

    shabbir Administrator Staff Member

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    It means you are expecting a lot less growth that what the market is expecting.

    If you expect a growth of 16% and want a return of 26% and expect PE to sell at 22 then you should be buying it a lot less PE
     
    shabbir, Mar 5, 2023
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  13. emailsaravanans

    emailsaravanans Active Member

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    As usual very good analysis. FMCG products which had Fine Organics as additives (not sure about this spelling) will find it difficult to move out from Fine Organics. This is the real moat for them. For me it looks little technical details. How to find or gather such information?

    Also at the end of the video the fair price looks very less then the current price. The current trend is downside and the management acknowledged it too. If that is the situation, what is the reason for you averaging at the current level?
     
    emailsaravanans, Mar 5, 2023
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  14. emailsaravanans

    emailsaravanans Active Member

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    I did the fair price calculation for Stylamind and it turned out the current price is too high. Could you check why is the stock trading at much higher price?
     
    emailsaravanans, Mar 5, 2023
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  15. shabbir

    shabbir Administrator Staff Member

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    shabbir, Mar 5, 2023
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  16. shabbir

    shabbir Administrator Staff Member

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    Will recommend everyone to watch the video



    And you will see that data is very simple one. You don't need anything more than EPS, growth (future based on past), expected PE ratio which is readily available for sure on screener.
     
    shabbir, Feb 26, 2023
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  17. emailsaravanans

    emailsaravanans Active Member

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    WoW, great session..!

    As usual u made it simple. As per my understanding Dmart (Avenues) is available at its intrinsic value now. I can now apply to stocks in my portfolio now.

    Are these data available automatically as a screener query?
     
    emailsaravanans, Feb 26, 2023
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  18. shabbir

    shabbir Administrator Staff Member

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    shabbir, Feb 26, 2023
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  19. shabbir

    shabbir Administrator Staff Member

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    Calculate the fair price of stocks with an easy-to-use Google sheet with intrinsic value and margin of safety.

    Continue reading...
     
    shabbir, Feb 26, 2023
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  20. shabbir

    shabbir Administrator Staff Member

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    Glad you like it. The point is to make it very simple for everyone to be able to understand and then invest wisely.
     
    shabbir, Feb 20, 2023
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