How to Find the Intrinsic Value of a Stock!

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★★Analysis Spreadsheet (It's FREE)★★
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How to Calculate the Buy Price of a Stock in 2019! // In this one I explain exactly how you can calculate the fair value or intrinsic value of a stock on the stock market, using the method taught by Phil Town, and used by some of the most successful investors in the world.
I have personally used this stock market strategy to achieve above market average returns over multiple years and I created a free stock analysis spreadsheet that helps beginners easily calculate the buy price of stocks without dealing with difficult mathematics, making it easy to know when to buy a stock.
Below I have linked all the resources discussed in the video:
1. Understanding the Business
Circle of Competence: bit.ly/2DCZFi4
2. Economic Moat
Stock Analysis Videos: bit.ly/2Tyyn1W
3. Management
YSP Ep. 9 Management Integrity: bit.ly/2BodBuP
Young Investors Podcast Ep. 12: bit.ly/2Qisg3i
4. Margin of Safety
YSP Ep. 10 Margin of Safety: bit.ly/2zoDU2H
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Disclaimer: The information & opinions in these videos are strictly for educational & entertainment purposes ONLY. None of the opinions discussed should be taken as financial advice as I am NOT a financial advisor. Please do your own research & consult a financial advisor.

Пікірлер: 421

  • @cherylcuttineau7916
    @cherylcuttineau79164 жыл бұрын

    A+++ from this retired educator! Easy to understand and follow, breaking down components of each subject, and plenty of examples. For those of you who are newbies and overwhelmed, REPETITION is the mother of all learning. Thank you for the freebies, Hammish--sending you massive energy for wealth and success!

  • @keyzerlingii
    @keyzerlingii4 жыл бұрын

    Hey! Ive been reading and doing alot of research on investing in stocks the last 2 years. Your video (and I’m only half way thru) made a bigger impact on my learning than any of those books, podcasts, audio books. Your video and the way you are explaining your process made me able to connect my dots. Now that’s value ! Thank you so much! You are a true inspiration and aspiration on how to share, educate and lead.

  • @HamishHodder

    @HamishHodder

    4 жыл бұрын

    Thanks so much! Glad the videos are proving helpful. If you need further help please send me an email and I will be happy to help: hamish@hamishhodder.com

  • @jv4nderh4m
    @jv4nderh4m5 жыл бұрын

    This is absolutely fantastic! You're bang on with this Hamish!! Great work!

  • @bryanc.6532
    @bryanc.65324 жыл бұрын

    Got 0% knowledge on Stock market and have just started to educate myself on how it works. Great content. T'was a big help. More power Hamish!

  • @giorgostsiolakis6179
    @giorgostsiolakis61794 жыл бұрын

    You make everything sound so simple and understandable man! Thank you! Keep up the good work!

  • @tinnguyen2219
    @tinnguyen22194 жыл бұрын

    Thank you so much for sharing this useful data! Greatly appreciated!

  • @elibrighton
    @elibrighton5 жыл бұрын

    I'm following the channel and using the spreadsheet. Great work Hamish. All these numbers are starting to make sense.

  • @HamishHodder

    @HamishHodder

    5 жыл бұрын

    so great to hear Eli!

  • @TheIcelandicInvestor
    @TheIcelandicInvestor4 жыл бұрын

    Great content Hamish, thanks for the free education😀

  • @conallcannon2492
    @conallcannon24925 жыл бұрын

    Excellent video. Thank you for making it available.

  • @WOLF91
    @WOLF914 жыл бұрын

    I appreciate this. I've been investing for about 3 years, and this is really good and informative video.

  • @jennifergonzalez6431
    @jennifergonzalez64313 жыл бұрын

    I've been looking for videos like this for so long. Thank you so so much

  • @Floatnride
    @Floatnride5 жыл бұрын

    Hamish, I have no idea how I stumbled on your video but it brilliant. You explain things really well. Thank you.

  • @HamishHodder

    @HamishHodder

    5 жыл бұрын

    Thanks for watching James!

  • @sergiveramartinez2685
    @sergiveramartinez26854 жыл бұрын

    This is great!! Keep on doing great videos

  • @TecnoSete
    @TecnoSete5 жыл бұрын

    Awesome video Hamish! Your channel got recommended to me and I just subbed 😄 great content

  • @HamishHodder

    @HamishHodder

    5 жыл бұрын

    Welcome to the team!

  • @TuanTran-sl3lv
    @TuanTran-sl3lv Жыл бұрын

    Thanks for your video Hamish

  • @DowsStockTalk
    @DowsStockTalk4 жыл бұрын

    Excellent content! I will be watching your future videos!

  • @nabacov
    @nabacov3 жыл бұрын

    You have a such a beautiful flow of words.. keep at it ma man.. & thank you

  • @kal2352
    @kal23524 жыл бұрын

    Great concise video with valuable content. Subbed!

  • @billm6610
    @billm66103 жыл бұрын

    Thank you for posting this video. Deep value here that creates a good base for continued learning. I appreciate you!!

  • @thecooperacademy
    @thecooperacademy5 жыл бұрын

    Quality video Hamish!

  • @HamishHodder

    @HamishHodder

    5 жыл бұрын

    Thanks Tristan!

  • @AnonymousAnonymous-zv6ty
    @AnonymousAnonymous-zv6ty4 жыл бұрын

    Thanks indeed. Appreciate!.

  • @E_JB-4513
    @E_JB-45133 жыл бұрын

    Thank you, you explained that extremely well

  • @wadapak7622
    @wadapak76224 жыл бұрын

    Your video is much more valuable than all investing videos i previously watched

  • @HamishHodder

    @HamishHodder

    4 жыл бұрын

    Thank you!

  • @diafaradrame9823
    @diafaradrame98234 жыл бұрын

    This video is awesome, I can’t thank you enough. God bless you Hamish.

  • @sagarkathaley5371
    @sagarkathaley53714 жыл бұрын

    Thanks for sharing awesome information. Great Explanations. Appreciations for your work.

  • @klnbrkr
    @klnbrkr2 жыл бұрын

    Thank you so much Hamish...

  • @syamajsreedhar1747
    @syamajsreedhar17474 жыл бұрын

    I'm been investing for an year now and learn most of the days how is that I missed your videos

  • @josebarba
    @josebarba4 жыл бұрын

    Great video Hamish

  • @vihangchaudhari
    @vihangchaudhari3 жыл бұрын

    This video is simplification Phil Town Rule #1 Investing and The intelligent Investor. Thank you so much.

  • @sep69
    @sep694 жыл бұрын

    Thanks for a very informative video. I've been investing for a few years and wrestling with determining what a good buying price is. Your formulas will sure be a great help. Thanks again ! Subscribed and going to watch your other videos soon.

  • @catherineahonsi4989
    @catherineahonsi49893 жыл бұрын

    Excellent talk

  • @ramseykiven2080
    @ramseykiven20804 жыл бұрын

    Thanks Mister, Made me realized lot of things to consider but at least i learn a lot from this video.

  • @holdencaulfield2538
    @holdencaulfield25383 жыл бұрын

    hey Hamish, this video is gold. Thanks for sharing.

  • @vairammanickam2865
    @vairammanickam28654 жыл бұрын

    Hi, the detailed explanation of calculating the buy price of a stock is very useful for the people who are investing in stock market.

  • @gudvsbad
    @gudvsbad5 жыл бұрын

    Amazing video! Thanks Hamish. You provide a lot of value to us. This video is not just for 2019, but forever and ever...

  • @martinjacobsen6375
    @martinjacobsen63754 жыл бұрын

    Great video, keep it up😊👍🏼

  • @elhusseintawfik6127
    @elhusseintawfik61274 жыл бұрын

    Hi Hamish, thank you for the informative video, I have a question, should I add the dividend yield to the EPS or remove it from the rate of return as you mentioned, would they give different results?

  • @RameshP-ds4xt
    @RameshP-ds4xt4 жыл бұрын

    Thanks and good effort

  • @vortac2k9
    @vortac2k93 жыл бұрын

    FANTASTIC WORK. tHANK YOU VERY MUCH

  • @denni-swan
    @denni-swan4 жыл бұрын

    love this video!!

  • @HamishHodder

    @HamishHodder

    4 жыл бұрын

    Thanks Dennis!

  • @chuadventura3482
    @chuadventura34824 жыл бұрын

    The way you describe in this vid is so clear. That has made me more confident to invest in value stock .thank you😻

  • @ducrogers302

    @ducrogers302

    4 жыл бұрын

    have you been able to use the knowledge in this video successfully or unsuccessfully?

  • @Sameer-tl1uq

    @Sameer-tl1uq

    3 жыл бұрын

    Fun

  • @tomnguyen6940
    @tomnguyen69405 жыл бұрын

    Good work! I have been watching your video and series improved over time. Great to have investors like you teaching on KZread.

  • @Imdazedandconfuzed
    @Imdazedandconfuzed5 жыл бұрын

    Great presentation

  • @HamishHodder

    @HamishHodder

    5 жыл бұрын

    Thanks!

  • @naveenperera5818
    @naveenperera58184 жыл бұрын

    Well done mate! Youre killing it

  • @alphabeta01
    @alphabeta015 жыл бұрын

    Great video. Can you include the link to the spreadsheet also. Thanks.

  • @anupriyagupta1329
    @anupriyagupta13293 жыл бұрын

    Wow loved your video I am currently studying masters of finance but want to study trading as well and your videos are just what I need. I am going to binge watch all of them.

  • @peterpayne2219
    @peterpayne22194 жыл бұрын

    Love your videos! Greetings from Japan...

  • @tinnguyen2219

    @tinnguyen2219

    4 жыл бұрын

    Hi Peter, My name is Tin Nguyen , I saw you comment on this video. I love Japanese culture and it awesomeness, would love to connect with you to share and gain knowledge in investment. Would you like to connect?  My email global3xchange@gmail.com Thank you

  • @paulraschella2223
    @paulraschella2223 Жыл бұрын

    Hi Hamish, enjoy your videos immensely….. very informative!!! Just a question, what is the best free stock screener ???

  • @Giezer1984
    @Giezer19845 жыл бұрын

    Hello Hamish, thanks for your very clear videos. They are very useful! I have one question with your video. In your example you use a $8 dollar EPS (ttm), but lately i has gone to $4,36 (ttm) for THOR. Was using the $8 dollar a bit optimistic? Should we better take an average over several years just like the PE ratio?

  • @JosiahPilon
    @JosiahPilon4 жыл бұрын

    Hi, thanks for your video! I'm having a little trouble using your spread sheet. I'm forwarning you that I'm a complete begininner so this might not be a difficult question. But, when I input the eps, stock price, and required rate of return, nothing happens in the manual buyzone calculator box. What do you think? I really want to be able to value a stock and make an intelligent decision if its worth buying.

  • @ShubhamKumar-bo7vj
    @ShubhamKumar-bo7vj4 жыл бұрын

    Hi Hamish Thanks for sharing this useful info Could you pls let me know as to why did not you use DCF approach??

  • @monjurkarim9661
    @monjurkarim96613 жыл бұрын

    simply excellent and probably one of a kind on this type of complex topic which you made so simple. thank you. do you have any video on setting up of technical analysis / chartings etc for better entry and exit signal of stocks?

  • @suhasshirke6809
    @suhasshirke68094 жыл бұрын

    Excellent.

  • @msavindaJani
    @msavindaJani3 жыл бұрын

    Thank you

  • @ZipTrader
    @ZipTrader5 жыл бұрын

    Good Job Hamish. So many people buy into stocks on an emotional basis instead of taking the time to actually calculate and analyze a strategic entry point. Keep it up!

  • @HamishHodder

    @HamishHodder

    5 жыл бұрын

    Absolutely! Thanks for watching.

  • @ab5526
    @ab55264 жыл бұрын

    Which calculation for the value of intrinsic value is most accurate: 1) DCF(earnings based), 2) DCF (FCF based), 3) projected FCF. Thank you.

  • @zenaku86
    @zenaku864 жыл бұрын

    Hi Hamish, thanks for the informative video. In this video, the formula seems to be similar to Phil Town’s and doesnt appear like the Discounted future cash flow. Is that right? Which one is your preference? Thanks

  • @basilyang3862
    @basilyang38625 жыл бұрын

    really like this spreadsheet and great explanation. Wonder how would you go about valuing companies with negative PE ie most growth companies

  • @egor.okhterov

    @egor.okhterov

    4 жыл бұрын

    If you are a value investor, you stay away from these companies. We are making low risk high reward bets. Negative p/e in the last 10 years in the history of the company immediately rules out that company as an investment for us. That’s only one of the several filters. Actually that’s the easiest and quickest filters. The other filters look at ROIC, which has to be above 20% for the last 10 years and it has to grow or stay flat. Debt is also a filter for us. The video you just watched is also about a filter. That’s a complicated filter, but nonetheless it’s a filter which tells that we skip a company if it’s price is equal or larger than it’s intrinsic value. We strive to buy as few companies as possible. We always try to discourage ourself from buying particular company. We try to buy as few companies as possible in our lifetime. Warren Buffett said we should buy 20 companies for our whole life. We always focus on the downside. When you have exhausted all of your filtering tools in your toolbox, you try to develop a story of how this company may fail in the future. You find all the short sellers, compile their comments into a singe story and then validate it’s sanity. If this story doesn’t look insane, then it might as well happen in the real world. That would mean you should skip that company, despite the fact it passed all the numerical filters.

  • @KamenKr
    @KamenKr4 жыл бұрын

    Great video! Where to find equity chart or how can we find the equity?

  • @basheerjan2462
    @basheerjan24624 жыл бұрын

    Hamish great video. Where can I download the spreadsheet?

  • @ValueInvestment
    @ValueInvestment4 жыл бұрын

    Superb. Thank you. Your explanation of intrinsic value calculation is very good. Will implement it. Thank you for sharing the excel file also. With your permission can I use it in my youyube channel.

  • @pochvillena3591
    @pochvillena35914 жыл бұрын

    Hi Hamish, I just want to ask. I only have the P/E Ratio data for the past 5 years. Can I still put 10 years as my time frame? Or is it better to have it at 5 as well? Thanks! Great video!

  • @stoneybaloney5514
    @stoneybaloney55144 жыл бұрын

    you are the GOAT good sir

  • @RicardoSchillerPinto
    @RicardoSchillerPinto4 жыл бұрын

    Hey Hamish! I'm trying out you spreadsheet v2.2 and when the EPS are negative it may produce negative fair, buy and sell prices, use COTY stock for example. Can the formula be changed to solve this problem, or how do we deal with such situations?

  • @koreenalbertspeer9766
    @koreenalbertspeer97664 жыл бұрын

    Hi, a very detailed explanation for laymen, mind I know what is your rationale to multiply the PE ratio (at 6:24) to obtain the future price, is that something have to do with the Peter Lynch chart method which earning somehow have some correlation with the market price?

  • @mea05key
    @mea05key5 жыл бұрын

    Superb

  • @learadory7516
    @learadory75165 жыл бұрын

    Excellent video. Will email you as I need the link also.

  • @dellman828
    @dellman8282 жыл бұрын

    Hey Hamish, great video, I have two questions, is this formula work for financial companies? Also, what would be the best intrinsic value method, DCF this method and other methods? Thanks

  • @APC-pm2on
    @APC-pm2on4 жыл бұрын

    Nice video 👍

  • @wonghongyun1661
    @wonghongyun16614 жыл бұрын

    hi, first of all really thanks for your free spreadsheet. However, i met some issues that what component would u consider as maintenance of capital expenditure. PPE, Intangibles and?? ( i am using 2020 version 3.0)

  • @couchpotato684
    @couchpotato6842 жыл бұрын

    Thaanks.

  • @holisticeducator9039
    @holisticeducator90395 жыл бұрын

    Hamish, thanks for being so forthcoming. Each time someone shares their understandings, as you have, we all take steps forward. MUCH APPRECIATED. Okay, I have a question/request. I'm interested in Prem Watsa's (Canadian Guru Investor that Phil Town speaks about) recent purchase of the Bank of Nova Scotia -- ticker BNS.TO. I've tried to evaluate it but am stumbling because of the reams of confusing financials connected to this institution's year end reports (and quarterlies, for that matter). I recognize that I should push this one aside into a "too hard" pile, however, I still want to understand how to evaluate banks. Can you help? Many thanks for your clarity and attention to detail.

  • @imonvirus7860
    @imonvirus78605 жыл бұрын

    excellent video for an investor like us.......by the way, spreadsheet link is not working...help me

  • @RS12257
    @RS122575 жыл бұрын

    Hi Hamish, You are doing great on your detailed videos! I have a question regarding the spreadsheet: Do you manually key in all the stock details or do you have an automated way to input the values in the data input tab?

  • @HamishHodder

    @HamishHodder

    5 жыл бұрын

    I just copy and paste them directly from quickfs.net most of the time

  • @caseymarsh3261
    @caseymarsh32614 жыл бұрын

    How would you suggest we find Sales, EPS, equity and FCF without using quickfs? specifically for nzx and asx? thanks for great video

  • @Ignotusist
    @Ignotusist4 жыл бұрын

    Great video thx. In my opinion you should reduce the required rate of return on your example by 3% because the dividend payout ration is round 50%.

  • @TheRealCzechmark
    @TheRealCzechmark4 жыл бұрын

    Liking the spreadsheet. I am having trouble though when the EPS or FCF is negative and is not imputing the data. How can I fix that?

  • @easytorememberuser
    @easytorememberuser4 жыл бұрын

    Also we can read Ben Graham's 'Intelligent Investor' book from the 1940's which covers all of these points in more detail.

  • @lungambhele160
    @lungambhele1605 жыл бұрын

    the link to the spreadsheet is not working? Great simple video

  • @richleong9029
    @richleong90295 жыл бұрын

    Can you please resend the link to the Stock Analysis Spreadsheet thanks

  • @bhaveshbhavsar260
    @bhaveshbhavsar2602 жыл бұрын

    Hi Hamish, The video was very informative. But I couldn't found Buyzone calculator sheet on File. Please advise me how can I access it.

  • @prabukrishnamurthy3490
    @prabukrishnamurthy34905 жыл бұрын

    this video deserves infinite likes. thank you.

  • @HamishHodder

    @HamishHodder

    5 жыл бұрын

    you are a legend ✌🏻 thanks for watching

  • @HaiTran-fi1uc

    @HaiTran-fi1uc

    5 жыл бұрын

    @@HamishHodder Can you send me the spreadsheet to my email @ t.hai46@yahoo.com? Also what do you think of sites like Simply wall st. They also have an analysis on thor industries and are also stating that it is undervalued same as yours.

  • @daledog16
    @daledog164 жыл бұрын

    Great video I was trying to use this worksheet for a negative EPS but was having some difficulties but this PRTY stock has a -5.57 EPS with a current stock price of .6611. There is lots of talk for a push up on value but we don’t know. It’s risky since chapter 11 is in sight but not chapter 7 yet so there is a chance of recovery

  • @gmo709
    @gmo7094 жыл бұрын

    Ok, subscribed. It is obvious that you enjoy what you do. I like it. You may be the next Peter Lynch or Warren Buffet.

  • @138vivek
    @138vivek4 жыл бұрын

    What did you mean by equity growth? Gareth I’m retained earnings or the growth in stock price

  • @tiagomonteiro5246
    @tiagomonteiro52465 жыл бұрын

    Great job as usually!! You'll have a bright future young man!! :)

  • @HamishHodder

    @HamishHodder

    5 жыл бұрын

    Thanks Tiago!

  • @ks-gv5yj
    @ks-gv5yj3 жыл бұрын

    Hi Hamish, thanks for the advise, this is very concise and appreciated. I can't find the 'BUY ZONE' tab in the spreadsheet, do you have a direct link to it? Thanks again and keep up the good work... :)

  • @DragoneSteez

    @DragoneSteez

    2 жыл бұрын

    Use version 2.2 (old version)

  • @djstr0b3
    @djstr0b35 жыл бұрын

    Awesome video mate! Would you be able to share the spreadsheet in a different way? I cannot download it

  • @djstr0b3

    @djstr0b3

    5 жыл бұрын

    got it :)

  • @petershaw9717
    @petershaw97173 жыл бұрын

    Hello Hamish. Where do I get the 15-20 year financial data you use in your spreadsheet?

  • @leanneli3874
    @leanneli38744 жыл бұрын

    Hi Hamish, could you update the spreadsheet? The version 3 doesn't have the Buy zone calc tab. Also for MAINTENANCE CAPEX, do we use Net PPE value? Is there a single website where we could get all these data for each company?

  • @velislavivanov983
    @velislavivanov9834 жыл бұрын

    I know there are no certain things with the market, but when you show an example with specific company and 1 year later the stock is down almost 30%, you're starting to doubt the method a bit. But it looks logic + there is no rule, that once you buy at this price the market would only go up. Let's see what happens in the long run, but for now, I'll pass on that ;)

  • @kambizkhosrowshahi1763
    @kambizkhosrowshahi17634 жыл бұрын

    Hi, to calculate the future price, why not use free-cash-flow per share instead of eps; and p/fcf instead of p/e? Thanks!

  • @corneliussolomon639
    @corneliussolomon6395 жыл бұрын

    the link to your spreadsheet is not working. please be so kind and send another link that work.

  • @Tito_2202
    @Tito_22024 жыл бұрын

    How does this compare to dcf/intrinsic value equation? More notably the ben Graham update equation.

  • @rafael123loek
    @rafael123loek4 жыл бұрын

    Very well explained, thank you! I just don't know where people get all the date. I know, I could go to the company's website and download every single year-end financial statement, but that would be a hassle. Is there any way to get something like a spreadsheet of historical data of stocks? It's great to know how to calculate fair value and intrinsic value, but I need to know what numbers to put in.

  • @HamishHodder

    @HamishHodder

    4 жыл бұрын

    Check out some of my other videos on intrinsic value!

  • @diyreef
    @diyreef4 жыл бұрын

    Great Video, thanks for sharing Hamish. I ran the numbers using today's TTM EPS and the story looks very different. Would love to see a follow up on this and hear your thoughts on what has changed.

  • @coffeeandbeyond7416
    @coffeeandbeyond74164 жыл бұрын

    Thanks, well today the stock is acctualy around 45$, what can you say about it, how should someone act today?

  • @pjroska2054
    @pjroska20544 жыл бұрын

    I cant even imagine that this is free 🤯

  • @jbjergh

    @jbjergh

    4 жыл бұрын

    It is great. But same concept as available in Rule#1 investor.

  • @jacknathapat591
    @jacknathapat5913 жыл бұрын

    Do you sell that Excel program? Where can I buy it?

  • @Heatranoveryou
    @Heatranoveryou4 жыл бұрын

    Holy shit this spreadsheet is insane.