How do I analyze intrinsic value of a stock?
Step 1: Click on “Intrinsic Value Analysis” under Screener tab.
Step 2: Search for the stock you want to analyze.
What is Intrinsic Value Analysis?
Intrinsic value analysis in the stock market refers to the process of determining the true or fair value of a stock based on the underlying fundamentals of a company. It helps investors evaluate whether a stock is overvalued, undervalued, or fairly priced relative to its current market price.
We offer 3 different valuation models:
Discounted Earnings Model
The Discounted Earnings Model is a valuation model used to estimate the intrinsic value of a company with positive earnings. It calculates the EPS every year based on the projected growth rate, discounts that back to present value and then sums up the EPS over a fixed number of years to derive the intrinsic value of the company.
Discounted Cash Flow Model
The Discounted Cash Flow Model is a popular valuation model used on companies with regular free cash flow and is used to estimate the intrinsic value of a company. It calculates the total Free Cash Flow based on the projected growth rate and discounts the back to present value.
Gordon Growth Model
The Gordon Growth Model is a valuation model based on a future series of dividends that grow at a constant rate.
We also have a new section: Peer Analysis which analyses the company alongside its peers. Using one of the valuation models and also the Piotroski F score, we can allow you to easily zero in on selected companies for further analysis.