Discounted Cash Flow - How to Value a Stock Using Discounted Cash Flow (DCF) - DCF Calculation

Discounted Cash Flow Calculation
2:13 - When to use Discounted Cash Flow (DCF)
3:33 - Where to Find the Data for Discounted Cash Flow
4:43 - How to Calculate Free Cash Flow
7:17 - Forecast Free Cash Flow
13:17 - Required Rate of Return (WACC)
20:15 - Finding Shares Outstanding
20:53 - Perpetual Growth Rate
21:47 - Calculate Present Value of Free Cash Flow
22:04 - Calculate Terminal Value
23:39 - Calculate Present Value of Forecasted Free Cash Flow & Fair Value of Stock
24:48 - Issues with Discounted Cash Flow Calculation

In this video, we walk through how to perform a discounted cash flow analysis of a company with the ultimate goal of trying to determine what the company’s intrinsic value is. Every investor should have a basic grasp of the discounted cash flow (DCF) technique. We go through the actual discounted cash flow formula and then we walk step by step how to perform the DCF calculation and where to get the information needed to calculate the intrinsic value of a company using DCF. In this example, we analyze Apple’s stock and perform a Discounted cash flow analysis on Apple to see if we can determine what the intrinsic value is.

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DISCLAIMER: I am not a financial advisor. These videos are for educational purposes only. Investing of any kind involves risk. Your investments are solely your responsibility and we do not provide personalized investment advice. It is crucial that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments. Please consult your financial or tax professional prior to making an investment.

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[MichaelJones-qoel]

You summarized an entire semester of classes I took, thank you much

[dussbabasa]

First time I see a DCF video clearly explained, thanks for sharing your knowledge :)

[michaelwang]

I learned both the CAPM and WACC model in my finance class, but I was never taught how to apply them in real life. I got more out of this video than a full year of finance courses. Great job Jimmy, you are amazing!!!

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The video was literally the missing piece to trying to understand this amazing approach to calculating intrinsic value. I cannot thank you enough for the time and effort you put into organizing this!

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[Mannymenhavetried]

Took me 5 times of watching to wrap my head around this but it was still some of the most straightforward explanation on how to do this. Thanks Jimmy.

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[fengnicole]

Finally I found a useful video to value a stock using DCF in a real example.Respect！

[mnstocknews]

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