TLDR? There are different ways that one can arrive at intrinsic value, depending on their approach. Investors must know which is the most appropriate for the firm under analysis.
(Ps: In this article, I will be using certain technical terms to describe companies, and will be elaborating some of the concepts with explanations in pictorial form)
Hey all, hope you enjoyed our post last week on the efficient market hypothesis. I hope that the article sufficiently conveyed certain ideas about why markets are never going to be perfectly efficient in the short run. Therein, because of the inefficiencies in the market, lies opportunities that are waiting for us to be discovered.
Today, we’re going to be discussing how we can analyse companies that we would like to invest in. We’re going to kick off the stock series with a discussion on intrinsic value.
Let’s begin.
