How do we calculate intrinsic value of stock security

Question

danielle · Answer

It is the PV of expected cash flow . to know in detail how to compute it you need to spend a whole course working on it.

anonymous · Answer

Thanks Danielle
Is there a link to some good internet links which explains swiftly and easily, the wareen buffet way

danielle · Answer

he discounts certainty cash flow (the cash flow that the firm will get for sure) using the risk free rate. Check amazon. there are many books about Warren Buffet

anonymous · Answer

Read all the books by Marry buffet. Never got a clear calculations on intrinsic value

anonymous · Answer

it is most difficult process, you need to have lot of genuine information of the stock. It is all about project the company's growth, it's risk. etc. you will analyze it discount cash flow method. then you will analyze the industry.

anonymous · Answer

in practical most of analyst follow relative valuation approach to value the intrinsic value of stock

anonymous · Answer

go to the site of stock exchange collect the data of particular industry as well as the company

anonymous · Answer

and u can calculate it

anonymous · Answer

@anshuca it is not that easy as you said.

anonymous · Answer

can u explain me why plz

anonymous · Answer

I understand what you all are hinting is very subjective and judgemental getting a intrinsic value , similar to forward PE. We need not be accurate of the result or value, what we want to discuss is the method to arrive on a number rather than accurate number