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 …