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EP16 (Part 2) Business Intrinsic Value Calculation

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Manage episode 211114538 series 2297027
Content provided by Jun Kim, CFA, Jun Kim, and CFA. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Jun Kim, CFA, Jun Kim, and CFA or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.
Followed by EP15 that covered three main valuation approaches (ratio-based, asset-based, and acquisition-based), this episode covers a Discount Cash Flow (DCF) approach to derive an intrinsic value of a company. In this episode, I discuss three important questions for the DCF approach and show you how you can estimate the intrinsic value by using a 2-stage DCF analysis. Estimate the first year normalized future cash flow after excluding unexpected items Determine the first stage growth rate depending on the characteristics of the business Calculate a terminal value by assuming that the company is mature Use an appropriate discount rate (either 30 yr Treasury bond rate or other approaches such as WACC) Additionally, I cover how you can include conservatism as a value investor in three different places (cash flow projection, discount rate, and margin of safety). DCF tool available on: https://www.gurufocus.com/ Podcast website: https://valueinvestpodcast.com/ Donate: https://valueinvestpodcast.com/donate/
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91 episodes

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Archived series ("Inactive feed" status)

When? This feed was archived on November 24, 2022 15:48 (1+ y ago). Last successful fetch was on August 01, 2022 21:45 (1+ y ago)

Why? Inactive feed status. Our servers were unable to retrieve a valid podcast feed for a sustained period.

What now? You might be able to find a more up-to-date version using the search function. This series will no longer be checked for updates. If you believe this to be in error, please check if the publisher's feed link below is valid and contact support to request the feed be restored or if you have any other concerns about this.

Manage episode 211114538 series 2297027
Content provided by Jun Kim, CFA, Jun Kim, and CFA. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Jun Kim, CFA, Jun Kim, and CFA or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.
Followed by EP15 that covered three main valuation approaches (ratio-based, asset-based, and acquisition-based), this episode covers a Discount Cash Flow (DCF) approach to derive an intrinsic value of a company. In this episode, I discuss three important questions for the DCF approach and show you how you can estimate the intrinsic value by using a 2-stage DCF analysis. Estimate the first year normalized future cash flow after excluding unexpected items Determine the first stage growth rate depending on the characteristics of the business Calculate a terminal value by assuming that the company is mature Use an appropriate discount rate (either 30 yr Treasury bond rate or other approaches such as WACC) Additionally, I cover how you can include conservatism as a value investor in three different places (cash flow projection, discount rate, and margin of safety). DCF tool available on: https://www.gurufocus.com/ Podcast website: https://valueinvestpodcast.com/ Donate: https://valueinvestpodcast.com/donate/
  continue reading

91 episodes

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