How To Estimate Terminal Valuation & Calculate Investment Returns (6 Examples Of Intrinsic Value)

Stock valuation is key for long-term stock market investing returns, in this video we discuss how to estimate terminal values and valuations so that you can calculate the intrinsic value of a company.

0:00 Intrinsic Value
2:09 Terminal Multiple
3:11 Interest Rates
3:58 Stock Market Valuation
5:32 Nominal and Real
6:16 Growth Rates
6:50 Comparing
7:15 Apple Stock
13:15 Microsoft Stock
14:20 Amazon Stock
15:23 Google Stock
16:16 Facebook Stock
17:46 BRK Stock
19:08 Multiple is KEY

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#intrinsicvalue #terminalvalue #terminalmultiple

[Value-Investing]

All that I do, the real links to my content are in the description of the video, I don't give out my Whatsapp number and I don't sell any Cryptocurrency related things! BE CAREFUL OUT THERE!

[gabrieleventuri-finanzaper]

You are the best Sven, no one brings as much value as you do here on YouTube 💪🏻

[gowzican]

Its crazy how much i have learned listening to you, I would consider you the modern Ben Graham. Thank you for everything

[zekevfab]

In addition, if you invest targeting a low terminal P/E value, if the P/E ends up higher than your target, you get a bonus return in addition to your target return. That’s a margin of safety. But if you already assume a P/E of 40 or 50 in 10 years, you are fragile.

[samuilk]

I just started watching your videos. I really like them alot, I need to do more research so I can learn as much as you and become a great value investor.

[ATLJB]

Great information! I just started with stocks in January 2020. I went with the auto invest strategy using M1 Finance. A year later, I have mastered dividend stocks. Now I want to learn growth stocks and this video put a lot in perspective for me. I’m studying contract options. After I saw a guy buy a $500 Tesla stock option that turned into a million! It brought my antennas up.

[TheMelody]

Graham, Templeton, Buffett, Lynch, Fisher, Munger, Carlin, Grantham... Greatest value investors ever lived.

[stefanopalermo]

Hi Sven, thank you for this gems of videos. To be honest I don' think this one hit the target of explaining how exactly to estimate terminal valuations. I would appreciate some deep dive into how to determine terminal valuations when using cashflow, dividends and EPS. I am sure many of your viewers would love that :)
thanks!

[omrikkasl]

hi Sven, wanted to let you know youtube suggested this video to me today,
Great content, thanks!
Also idk if you want to make more of this types of videos but i loved the "tour of life" video you made which was more lifestyle improvement, and would love to see more of that! :)

[nhungdo]

@Sven: Sven "intrinsic value" is solid finance background PLUS sharp practical "consumer insights" :). Thanks heap !

[crepituss]

Happy Valentine's Day, Sven! These valuation videos are great, so thanks! I hope it doesn't get you in trouble with your wife.

[ANDROSTENEDIOL]

Sven thank you very much for your videos.
I'm close to give up on Terminal multiple :)

Can someone please complete the equation ?
Terminal multiple = A * B
Terminal multiple = P/E * Cash Flow
Terminal multiple = P/G * EPS
Terminal multiple = Revenue / Net Income
Terminal multiple = (Cap spending * Net Income) / Gross margin

So what is the equation to calculate Terminal multiple ?
Terminal multiple =

[nomcognom]

These are the useful videos. The ones that give tools for the people to make their own choices and not put money in X, Y, Z because potatoes.

[MakroPoskoci]

11:11 I would be interested in those "boring, emerging markets"... ;-)
Keep up the good work, Sven. Your channel is one of my reference points in the world of investing. I've already learnt so much from you!

[vibranthappyhealthy]

Love your humor :) “not so much for YouTube stocks, but boring emerging markets..” call me boring, but I prefer cheap emerging market stocks. In investing you go where the puck is going to be, not where it is. YouTube interest is a great indicator for where the puck is right now. Keep some content coming for us boring guys, I have no interest in electric vehicles, thank you.

[christophkral]

I would go down with the discount rate if a stock is very stable. Apple I would use a discount rate of 8 % for, Alphabet 5-6 % because it has a very stable business. But still these stocks are overvalued in most cases I calculate.

[DuaneEseo-ulbg]

Thanks for sharing your stock market research excellent explanation.

[sommeliermicheleorbolato]

A great template (a super thanks to Sven) that I started to use since you made it public, and I have to say very useful. More conservative we are as you say better is to protect ourselves.

[Isendir]

Such value!! Thank you for your work! I hope your subscription numbers reach a terminal value worthy of Tesla's :)

[vladrm]

Hi Sven, thank you so much for the explanation and examples, much appreciated!

Could you (or anyone) please explain why is the Intrinsic Value calculated using the Cashflow from year 2029, rather than 2030?