How to estimate intrinsic value
Back in February 2011 my estimation Woolworths' intrinsic value put it at $23.36. At the time the company traded for $26.42, a 13% premium. Six months later, the thesis was proved right as the company fell to $23.50 in October.
In this video, I revisit Woolworths to find its new intrinsic value with one large change in mind - low interest rates. In doing so, I share the steps I use when estimating the intrinsic value of a stocks further discussed in my book Value.able.
Watch the video below to find out more:
Not already a Livewire member?
Sign up today to get free access to investment ideas and strategies from Australia’s leading investors.
Never miss an update
Enjoy this wire? Hit the ‘like’ button to let us know.
Stay up to date with my current content by
following me below and you’ll be notified every time I post a wire
Roger Montgomery founded Montgomery Investment Management in 2010. Roger has more than three decades of experience in investing, financial markets and analysis. Roger also authored the best-selling investment book, Value.able.
3 topics
1 stock mentioned
Comments
Comments
Sign In or Join Free to comment
most popular
Equities
The 7 zombie companies lurking on the ASX 300
Livewire Markets
Equities
18 stocks backed by a fund that returned 42% in 12 months
Livewire Markets