Stock - Target & Entry Price

About Stock - Target & Entry Price

𝐓𝐡𝐢𝐧𝐤 𝐃𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐭 & 𝐆𝐨

𝑰𝒏𝒕𝒓𝒊𝒏𝒔𝒊𝒄 𝒗𝒂𝒍𝒖𝒆 is a core concept of value investors seeking to uncover hidden investment opportunities. To 𝐜𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐞 𝐢𝐧𝐭𝐫𝐢𝐧𝐬𝐢𝐜 𝐯𝐚𝐥𝐮𝐞, you need to have a strong understanding of 𝒇𝒖𝒏𝒅𝒂𝒎𝒆𝒏𝒕𝒂𝒍 𝒂𝒏𝒂𝒍𝒚𝒔𝒊𝒔. Intrinsic value helps determine the value of an asset, an investment, or a company. Intrinsic value provides the amount of 𝒑𝒓𝒐𝒇𝒊𝒕 that exists in an options contract.

In this app various method available for calculating Intrinsic value:

𝐏𝐫𝐞𝐯𝐢𝐨𝐮𝐬 𝟏𝟎 𝐲𝐞𝐚𝐫 𝐆𝐫𝐨𝐰𝐭𝐡 is previous 10 years (EPS, Dividend per Share, Property & Plant Equipment) growth positive?

𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 𝐀𝐩𝐩𝐫𝐨𝐚𝐜𝐡 𝐈𝐧𝐢𝐭𝐢𝐚𝐥 Strong Financial Position, Earnings Stability, Dividend Record, Earnings Growth, Moderate P/E Ratio, Moderate P/B Ratio & Margin of Safety.

𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 𝐀𝐩𝐩𝐫𝐨𝐚𝐜𝐡 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 Earnings Yield, Dividend Yield, Return on Invested Capital & Return on Equity.

𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐑𝐚𝐭𝐢𝐨 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 Calculate financial ratio growth & 6-year average value compare to the current value.

𝐂𝐨𝐦𝐩𝐚𝐫𝐚𝐛𝐥𝐞 𝐂𝐨𝐦𝐩𝐚𝐧𝐲 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 Compare company according to EV/Sale, EV/EBITDA, EV/EBIT & Market Cap/Earnings.

𝐁𝐚𝐥𝐚𝐧𝐜𝐞 𝐒𝐡𝐞𝐞𝐭 𝐑𝐞𝐬𝐮𝐥𝐭 According Share capital, Reserves & Debt.

𝐏𝐄 - 𝐄𝐏𝐒 𝐌𝐨𝐝𝐞𝐥 PE Ratio is less than twice of the last three years average EPS growth rate.

𝐏𝐁 - 𝐑𝐎𝐄 𝐌𝐨𝐝𝐞𝐥 Return on Equity is improving to reach the desired figure within the next few years.

𝐅𝐨𝐫𝐰𝐚𝐫𝐝 𝐏𝐄 𝐑𝐚𝐭𝐢𝐨 Forward < Current = Under Valued, Forward = Current = Fair Valued & Forward > Current = Over Valued.

𝐄𝐕 / 𝐄𝐁𝐈𝐓𝐃𝐀 𝐌𝐨𝐝𝐞𝐥 Just like the P/E ratio (price-to-earnings), the lower the EV/EBITDA, the cheaper the valuation for a company. Although the P/E ratio is typically used as the go-to-valuation tool, there are benefits to using the P/E ratio along with the EV/EBITDA. Companies that have both low valuations using P/E and EV/EBITDA and solid dividend growth.

𝐏𝐄𝐆 𝐑𝐚𝐭𝐢𝐨 The PEG ratio enhances the P/E ratio by adding in expected earnings growth into the calculation. The PEG ratio is considered to be an indicator of a stock's true value, and similar to the P/E ratio, a lower PEG may indicate that a stock is undervalued. The PEG for a given company may differ significantly from one reported source to another, depending on which growth estimate is used in the calculation, such as one-year or three-year projected growth.

𝐈𝐧𝐭𝐫𝐢𝐧𝐬𝐢𝐜 𝐕𝐚𝐥𝐮𝐞 𝐅𝐨𝐫𝐦𝐮𝐥𝐚 Intrinsic value refers to some fundamental, objective value contained in an object, asset, or financial contract. If the market price is below that value it may be a good buy, and if above a good sale.

𝐁𝐞𝐧𝐣𝐚𝐦𝐢𝐧 𝐆𝐫𝐚𝐡𝐚𝐦 𝐈𝐧𝐭𝐫𝐢𝐧𝐬𝐢𝐜 𝐕𝐚𝐥𝐮𝐞 Benjamin Graham was an influential investor whose research in securities laid the groundwork for in-depth fundamental valuation used in stock analysis today by all market participants. His famous book, The Intelligent Investor, has gained recognition as the foundational work in value investing.

𝐃𝐢𝐬𝐜𝐨𝐮𝐧𝐭𝐞𝐝 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰(𝐃𝐂𝐅) 𝐌𝐨𝐝𝐞𝐥 Discounted cash flow (DCF) helps determine the value of an investment based on its future cash flows.

𝐌𝐮𝐥𝐭𝐢𝐬𝐭𝐚𝐠𝐞 𝐃𝐢𝐯𝐢𝐝𝐞𝐧𝐝 𝐃𝐢𝐬𝐜𝐨𝐮𝐧𝐭 𝐌𝐨𝐝𝐞𝐥 The multistage dividend discount model is an equity valuation model that builds on the Gordon growth model by applying varying growth rates to the calculation.

𝐃𝐢𝐯𝐢𝐝𝐞𝐧𝐝 𝐃𝐢𝐬𝐜𝐨𝐮𝐧𝐭 𝐌𝐨𝐝𝐞𝐥 DDM is a quantitative method used for predicting the price of a company's stock based on the theory that its present-day price is worth the sum of all of its future dividend payments when discounted back to their present value.

𝐏𝐚𝐫𝐚𝐠 𝐏𝐚𝐫𝐢𝐤𝐡 𝐈𝐧𝐭𝐫𝐢𝐧𝐬𝐢𝐜 𝐕𝐚𝐥𝐮𝐞 "Parag Parikh - Value Investing And Behavioral Finance"

𝐆𝐞𝐧𝐞𝐫𝐚𝐭𝐞 𝐑𝐞𝐬𝐮𝐥𝐭 𝐏𝐃𝐅 & 𝐒𝐡𝐚𝐫𝐞.