How To Calculate Intrinsic Value (AMZN Stock Example + Excel Template)

Many wonder what is intrinsic value or how to calculate intrinsic value. Well, this video will define intrinsic value, explain the key factors you need to calculate the intrinsic value of a stock, give you a great intrinsic value excel template you can use and discuss it all on a Amazon stock intrinsic value calculation.

0:00 Intrinsic Value
0:45 Intrinsic Value Definition
1:27 Key Elements
1:58 Earnings
5:38 Growth
6:24 Certainty
7:41 Discount Rate
9:08 Intrinsic Value Formula
10:13 AMZN Stock Intrinsic Value

The formula to calculate intrinsic value is the discounted present value of future cash flows.
To apply the intrinsic value formula you need to understand its main components which are the cash flows or earnings, the future growth rate, the probability and the discount rate.
Here is the intrinsic value formula:
This intrinsic value calculation video is part of my free stock market investing course - check it out for more content like this:

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#intrinsicvalue #stocks #warrenbuffett

[scottscriticalmass]

I hope people realize and appreciate the level of education they're getting from you Sven. Cheers to you!

[marcoaraujo]

You just moved your channel a notch above the competition.

[mcthomps]

In case it helps anyone else, I copied the spreadsheet to google sheets and then used the googlefiance operations =googlefinance(A4, "eps") where A4 is the ticker symbol. I then found a list of the russel 1000 and copied it into column A. I used Sven's operations and then had it compare the price today =googlefinance(A4, "price") with the green cell in Sven's spreadsheet (present value sum) then made another column where it divides that cell by the price today. You can do conditional formating in google sheets (under the format tab) and make it color the cell green if it is over 100%. Googlesheets will update each time you open it and run the operations, then you can scroll through and see if anything is showing up as green.

[matthewng]

Been following you for a year now and I have to say that the content you provide is hands down the best. Thanks Sven!

[michaldanco]

Damn this is amazing. You are doing this stuff for free. You need a patreon. Thank you for doing this for us.

[mrsdbrc]

For this video I have been waiting 2.5 years druze moj... I have put mean while my own spreadsheet... I can send it to you...

[MoteroCatolico]

This is the best value investing channel. I work as an analyst for a Investment Bank and get value here

[tjampman]

Hi Sven I am a new follower thanks for all the work you put in. However there is something I don't understand.
In the example you seem to be using :EPS but the input cell is labeled cash flow! How can that be interchangeable?
Would you not need a different multiple for basing your calculation between EPS and Free Cash Flow?
- I don't understand how you can just type in seemingly random values and get a uniform output!
I have even seen you inputting the dividend (from your example of Unilever)

In case you see this post and you feel like giving a thorough reply, I would love a video where you go through the same company using different input values (EPS, FCF, dividend, ETC) and then explain why a certain method is best and why the results are different and how use the result,
Or maybe you already made a video like that, Then I would appreciate anyone reading this much post a link.

[overnightgrowth]

Exactly what I’ve been looking for lately. Getting more into the actual numbers of understanding value investing.

[ernestoperez]

Fantastic video introducing the aspects and factors of a DCF model. I believe the discount rate is the most challenging aspect of a DCF model. Cost of equity or WACC may be used if you are doing FCFE or FCFF. May you do a video about discount rates and real methods used in the industry and by some of the best valuation thinkers out there?

[MrGrindub]

This is crazy value you're giving here, thank you. Merry Christmas

[Xeldid]

Hi Sven, after trying to learn about the stock market for a year now, I have to say you are providing a great value and information. Greatly appreciated :)

[sa]

I have watched a lot of videos on how to calculate the intrinsic value of a scrip. None as well as explained by Sven. I feel confident for the first time about using this approach....

[herotiramisu]

Someone who is actually specialized in the field sharing knowledge to the green.... he is for real !

[jomii]

This video has a tremendous intrinsic value! Thank you for all your work, it's really teaching me how to explore the world of investing.

[kevinhernandezmonzalvo]

Thank you very much for this method, this will definitely help me to improve my investments! If we do this fundamental analysis every time before buying stocks, our long term yields would improve considerably and consistently

[anthonygagnon]

OMG thanks Sven I was just reading your book and I was confused on the insintric value part and I was thinking in my head I wish he made a video on this, YES!

[Investobooks]

Thanks for all the value delivered over the years, for sure hard work to prepair, really helpful!

[ZanasRadzys]

How does probability work and what does "Part" mean?

[fergspotato]

Amazing video as always! The only YouTube channel i found so far with substance. Puno hvala!