35. Warren Buffett DCF Intrinsic Value Calculator
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- Опубліковано 14 бер 2014
- Learn more about Preston’s Intrinsic Value Course that teaches you step-by-step how to calculate the intrinsic value of a stock in 18 exclusive videos: www.theinvestorspodcast.com/p...
Watch my other investing courses:
www.theinvestorspodcast.com/t...
Download Preston's 1 page checklist for finding great stock picks: buffettsbooks.com/checklist
Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location:
www.amazon.com/gp/product/0982...
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Use the intrinsic Value Calculator at:
www.buffettsbooks.com/security...
Value stocks with the Discount Cash Flow Intrinsic Value Calculator
Okay, so I just got done watching all the three courses and I can't thank you enough. These lessons are gold. You're one sublime teacher. Kudos for the great work! Thank you once again!
+Ashish Singh I couldn't have said it better!!! Thank you Prestons Pysh you are making a huge contributions to society!!! Thanks again!!!
Bt how do we calculate intrinsic value as for the base he has taken 10 year federal note we are in india and trade in bse what should we take as a base in india
@@mayankmittal16 you can just google "the 10 year average bond interest rate in India " and I guess now it's around 6 percent
@@imlkr_ thanks buddy and you are right
@@mayankmittal16 cheers!
This is literally life changing, I can't put a price on how good this has been for me - I'll never forget how much knowledge I've learnt from these Preston, so thank you! I wish we could all lobby together and PAY you for this? Would love to be able to donate something to you!
Now its time to go back over the things that haven't quite solidified as pure knowledge yet, and start my journey on the stock market.
Sincerely, Jay Kiriona
Have you made money off of this formula?
Hi Preston! finished the 3 courses! and can't thank you enough for your enlightenment!! also grateful that people like you exist!!
Just completed your courses, thank you Preston for adding massive value
Watched all the 3 videos series without skipping a single ad..because thats what we can do by our side..thank you for your time contributing to us..learned lot of stuff and never ever get into this much of level without you.. salute you again..
Now that I am done with all of these videos I can run through my notes and slap together all the pertinent formulas so I know what to look for in a healthy company (at least for the screening process). This series has been phenomenal!
Had you made money off this formula?
Watched all 3 series and these are gold in UA-cam I have found out. Thanks for this ❤️
Hi Preston, your courses have been gold to me! Thanks so much for the effort you put into them.
Welcome back Mr. Pysh, you have certainly been missed.
@@PrestonPysh Don't you think you should compare intrinsic value to enterprise value/share? Comparing it to market price is misleading.
We all thank you... ....your the most effective, ...the most convenient.. the easiest and most simplistic understanding of financial information given anywhere on the internet around the world.
Thank you and bless yah..
My entire family are learning all your knowledge and you've made financial education FUN!!!!...
you've changed our lives.. very humbling ...and very grateful.
Thank you. From New Zealand..
Had you made money using this formula?
I would love to thank you for these 35 lessons. I have learn so much about how investments work. I am now able to investments intelligently.
Preston all your courses were very helpful and easy to understand! Thank you and congratulations!
Thank you very much for making these videos and providing them to us for free! I just finished Cardiology training and was looking at ways of investing my income. They don't give us any education in financing and I feel your videos gave me a nice background to work from.
Thank you!!!
thank you so much for all your hard work to provide us with free courses that helped me so much. God bless you..
Thanks so much Preston. The entire course was amazing with plenty of eureka moments. I look forward to reading your books now.
I have read buffets books and intelligent investor...but never understood the value concept properly..but after watching all your vedio now i really understand what value investing is...thanks a ton for sharing your knowledge in such an easy way😄😄
Awesome! That was a lot of things to go through. Thank you for sharing your knowledge with us.
Preston thank you very much for taking the time and creating this video series. I am very grateful for having you as my teacher. Your style is straight forward and easy to understand. There is Jewish proverb.." Save one life and you saved the whole humanity." I feel like you have done that more than once... Thank you again for teaching me how to fish... Good luck in everything you do. Happy New Year
Great set of courses, thanks for all the time you've put into it!
Thank you, Preston
These Courses are real Gold 🧡
Thank you for all the work you've put Preston.
Love this stuff Preston. Big fan of the forum on the website too. Top quality stuff.
Hi Preston Pysh, just finish your 3 courses, thanks for the sharing. See u on top
Really appreciate all these lessons.
Just finished watching all of the courses. Thank you for all the knowledge!
Wow thank you for sharing! I'm just through 2/3rds of the Intelligent Investor and his strategies didn't sink in until I finished watching your videos. It's more clear now, thanks for the advise, resources and engaging content, I'm more confident as a first time investor. Can't wait to listen to your podcasts on the way to work!
Thank you dear preston it surely will help us now to be a winner at all times
Hey Preston, I watched your all 3 courses. They are really nice teaching! I learned a lot from these classes. Thanks you very much!
Had you made money using this formula?
@@tonycosta3336 Yea Man!
@@Ray-hx4dz Oh wow so would you recommend this formula or would you recommend a different one? Thanks for answering my question just wanted to know if this formula works thanks
@@tonycosta3336 I would only recommend this DCF method!
@@Ray-hx4dz thanks again for answering seems like people agree this is a good intrinsic value I will definitely use!
Thank you so much, the course helped me alot.
It's been 6 years after you originally put these videos out! I've finally finished going through all of them and it was awesome! I've learnt so much and its been an amazing head start getting all the info from one place so quickly! Thank you so much!
Hi. Have you started upon an investment portfolio based on Preston's videos? I finding myself too risk-averse 😅
Had you made money on this formula?
@@tonycosta3336 I used on Disney last year when markets dipped and I bought some (didn't have much cash on hand) but so far I've made about 40% so far. I'm still learning but these videos were a really good starting off point for me I feel... Plus they are free!
@@Az-jt2zp thanks so this formula works? And hope you continue investing
@@tonycosta3336 well I mean, from my current research and discovery (not as much as most pro value investors) it's just one part, and argueably a small part of it. You could do a DCF analysis on a bad company that's poorly managed with lots of debt it can't service and loose all your money when the company goes into bankruptcy for example
Thank you so much for sharing this useful data! Greatly apprecaited.
Thanks a lot bro
This is great and I watched all your there courses you are able to make things simple and understandable.
I love this, thank you for this video, I’m currently reading your warren Buffett accounting book, excellent stuff!!!
Awesome tutorial. Sir you are a genius.
Preston i appreciate this being for free. Thank you
Thank you for all of this information, I really appreciate it.
thanks sir preston for the video,its easy to understand
Gonna watch all 3 courses again.
Thanks for the valuable lesson sir, ur a good teacher
Thank you for amazing knowledge
Thanks for the great knowledge!
Thanks Preston. This course has been fantastic. Really appreciate you putting the time and effort into creating these videos. I've ordered your book and can't wait to get stuck in. Many thanks, Ben :)
Benjamin Daly could you please name the book!Thanks
Thank you very much! I watched your videos, read your books, saved your website! I will ask my wife do the same thing again. and we are going to head to stock market!
hey so would you like to share how useful this course was and how much money you actually gained by using these techniques
Thank you so much for such clear and good quality content videos :)
Had you ever made money using this formula?
What a great lessons, Thanks you a LOT
Just finished all 3 courses, thanks for all the knowledge
fantastic videos
Massive value, appreciate your hard work in presenting this amazing course to someone who has no idea where to start! Thank you thank you thank you!
Great, the channel is still alive!
Thanks a lot Preston !
Very very very helpful!
It is gold, thank you very much
Thank you all these lessons are of great value. Can you make a lessons on security Analysis?
Thanks a lot.
Preston!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Where have you been? Thanks for the vid! I learn a lot.
it is a great video. cleared my concepts. Thanks from Pakistan
An excellent video. Really good. A great job .
by far you are the best been watching gurus here in the philippines and it's really hard to trust them
This calculator its simply amazing Preston. :)
YOU'RE BACK!! DONT LEAVE US EVER AGAIN D:
Does this formula work?
WHEY!! a new one!!GREAT I'm all excited, cheers Preston!!!!
十分感谢您辛苦更新的视频，无私的分享您的知识，希望有更多的视频，感激。
Best videos ever .. thumbs up if u r watching this videos during codvid 19 pandemic
When do I use this calculator over the other one in course 2? Or should I be using both all of the time?
Thanks
Thanks for this great video series(Y) . Your calculator is excellent and easy to use tool but there's one issue that its not accounting for negative net income percentage as currently we have -1.07% for WMT
Jusk like sir Ben Graham is to sir Warren buffet , u r to me. Thank you for this course.
Hi Great tutorial , in a simplified manner that a lay man like me could understand.
Thanks a ton for this
What about amortization and depreciation? Can you do implement this as well when determining cash flow?
Hi thanks for your video, kindly let me know where i can find this software ?
Hi Pysh, thanks for the all the videos, its been really helpful to me. Also I have question for you, I'm new to investing and while analysing the stocks i have realised that there are a lot of companies that are doing extremely well but when i look at their free cash flow, it's negative year after year and for every year. How do we estimate the worth of such a company and is there a way to calculate the intrinsic value for these companies ? One example is HDFC in the Indian market. Can you please comment on that, would appreciate it. Thanks in advance.
Hello Preston. at 16:22 mark what is the calculation behind finding the 7376% annual return?
Nice vid. Curious as to why no cash/cash equivalents or total debt taken into account for calculation?
you are great teacher
we can do this for BV, choose a short term growth and then choose a growth perpetual. Since we will see BV in cash only in the end, we discount it only one time. This is ofcourse if we have no dividents.
Hi Preston,
Very NIce video. There are a some doubts What should I enter In point 6(Shares Outstanding) if i have for example 2.31 crore and 42.41 lacks in shares Outstanding?
Hello, I know I am a little late to the party (four years later), I just finished watching all the videos and loved them. The only thing I struggle with is really where to start in order to conduct my analysis... so many things to look for. Does anyone figured out a good way to assemble all these formulas in a practical order ?
Hi, May i know the background calculation behind this DCF calculator. Really appreciate.
preston which calculator is more precise?
Hey Preston, is there no more "Input Ticket" option on the DCF calculator?
Thank you for these three courses, they have helped loads. Question for you Preston if you dont mind, why do we use the whole FCF as the owners earnings? Should we not separate growth capex and maintenance capex? Then subtract operating cash flow - maintenance capex (instead of whole cap spending) to give us the FCF. Thanks for your great work.
how?
Whats the calculation you do to find out the intrinsic value per share of the company after inserting the shares outstanding?
This whole course if pure Gold, thank you so much. I have assessed many companies, using all the tools and fundamentals that you have taught us, I found the following stock as an interesting option PRU Prudential Financial, using the first calculator I got a 16% yearly over the next 10 years, I used that value using the DCF calculator, and I use only data from 2011 until 2019 due to COVID-19 impact, according to the DCF calculator this company may yield a 37.69% annual return, is my assessment accurate? or I am missing something that could lead to this high return.
Regards,
deep down from my heart , Thank you Sir
Rather than net income, i think it makes sense to use the book value per share of the initial period to the final period and then add all the dividend payouts in that period on top of the difference of the book values to get the total amount of growth that we've seen after operating expenses is taken into account.
Thank you very much, Preston! Courses are really nice. However, I found a mistake in the last #35 lesson. The sum of DFCF is not right and it is not in the current calculator on the website, too. Maybe I am confusing something, but I summarised DFCF couple of times and it always shows a little bit different number on the website. If I am wrong, can you tell me why the Sum of DFCF is not accurate. P.S. I wanted to ask a question on the forum, but I have not found any options to start a discussion over there. Thank you for the attention
Please may I ask? On which website one can find an efficient, free way to find a company's past book value per share stats over the past 10 year period.
Any help would be great. Thank you😊
Hie Preston! Lesson 1, there is a part you mentioned that after Buffet has bought stocks of a company. Later he gets money month in month out from every profit of the goods sold, are you able to explain to me what you meant there, Thanks!
Sorry but I wanna ask you about the info that you take from morgingstar you did take the financial earnings not the owners earning right ?
The web resources that I have found say that free cash flow is different than Owners Earnings. Depending on the type of company, they can be very different. So if I can calculate both owners earnings and free cash flow, which should I use?
I thought in a DCF investment calculation the discount rate was using something more concrete like the WACC for the company under inspection.
Hey Preston, for the company I'm researching the average growth rate calculated was negative..I received an error when I tried to continue, so I just kept it at the default 3%..can you explain what to do in a circumstance like this? I just want to make sure that what's being input into the calculator is correct. Thanks!
I hope you see this question = ) Given a company has negative income the present year the calculation will only calculate with positive numbers as I see it. What should one do ? = )
Hi Preston,
Can we not enter owner's earning per unit instead of what you do in DCF calculater?
How'd you get the DPCF calculation. I keep getting a different number. It's doing my head.
will this calculator be also valid for other currencies.
Try an alternative simple way:
Settings:
Owner's earnings per share based.
DCF year is proportional to CROIC. CROIC = 20%, means 20 years.
Growth = 0 and Discounted Rate = 0 because they are taken care of by CROIC.
I used the calculator and this is what it said, The intrinsic value per share is $48.17 at a 10.00% annual discount rate
Based on the cash flows you have forecasted and a market price of $58.73, this company may yield a 8.78% annual return. I would like to know if this is a good number.
When evaluating AAPL data, DCF model calculator gave the intrinsic value of $645, whereas the book value based calculator only $145. In both cases prospected time period was 10 years.
I get that intrinsic value is highly subjective, but what about such a huge difference?
What benefits for using the Book Value Intrinsic Value calculation