Saturday, November 22, 2014

Intrinsic Value - The Mother Of All Cheat Sheet

Intrinsic Value
If you are adopting Value Investing strategy, I am sure you are aware of the importance of calculating the Intrinsic Value of the company of your interest. This is to enable you to identify those under-valued company to invest and release when it is deemed over-valued. 

Many of the newbies are intimidated by the "complexity" in calculating the Intrinsic Value (especially finance is not our forte, like myself). Fret not! Recently, I've chanced upon a 15 minutes video from The Fifth Person explaining the Intrinsic Value in layman term and how to calculate it. 

Most importantly, they came up with a wonderful cheat sheet (download-able freely) to derive the Intrinsic Value in a snap. Of course, there are still two components which you need to select i.e. the Growth Rate and Inflation Rate before you can get the magic number, i.e. a factor that you can multiply it with the EPS (Earning Per Share) and obtain the Intrinsic Value right away.    

If you are still new and hazy about what the hack is Intrinsic Value, check out their video here (you can download the cheat sheet via this link too).

The Fifth Person has been churning out some great stuff recently, check my my earlier post here on their FREE book entitled "16 Asian Growth Stocks That Made Up 1,813.6% in ROI". I've received the physical book the next day of my registration and I will write my review in subsequent post. Stay tuned!


Note : This is NOT a promotional post, it is purely for sharing!

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