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?
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Calculate Intrinsic Value of Stock - Google Sheet
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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?shabbir likes this. -
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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?shabbir likes this. -
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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 PEemailsaravanans likes this. -
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? -
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?
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Business Analysis of Fine Organics
https://www.youtube.com/watch?v=57-kwAtmh5I -
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. -
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? -
Calculate Fair Price of Stocks with Google Sheet
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Calculate the fair price of stocks with an easy-to-use Google sheet with intrinsic value and margin of safety.
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