What Is The Correct Discount Rate To Use to Determine NPV of a Stock (Part 3 of 3) | FAST Graphs
What is the correct discount rate to use?
In this video, Chuck Carnevale, Co-Founder of FAST Graphs, a.k.a. Mr. Valuation will go over what is the correct discount rate to use to determine NPV of a stock. One of the most widely accepted methods for valuing a business in today’s world of modern finance is the discounted cash flow analysis. To calculate valuation, you must rely on mathematical formulas, however, the challenge with utilizing mathematical formulas to determine the net present value of a future stream of income is in determining the proper inputs.
Here is a link to Part 1
• How To Calculate the I...
Here is a link to Part 2
• Predicting Future Valu...
Time Codes:
0:00 - Introduction by Chuck Carnevale
14:44 - Global Payments Inc (GPN)
17:41 - Cencora Inc (COR)
18:41 - Ameriprise Financial Inc (AMP)
19:33 - Elevance Health Inc (ELV)
20:28 - Amdocs Ltd (DOX)
21:08 - Johnson & Johnson (JNJ)
22:31 - Closing Remarks by Chuck
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Disclaimer: FAST Graphs is a tool designed to reveal and present information related to financial data and investment metrics. It is not intended to provide specific advice or recommendations. Instead, it offers a comprehensive view of relevant data, empowering users to make informed decisions based on their own analysis. It's your first step to a more comprehensive research and due diligence process. In short, it is a tool to think with. The opinions in this video are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned.
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Пікірлер: 14
Dear Chuck … I am one of your FG subscribers… I don’t live in the US. I have been learning from your tutorials and really want to thank you for it. You are helping build my investments and you have no idea who I am !! 😂. What a world we live in?! but God Bless the USA and the SP500
I have found the B rated junk bond average rate 10yr yields to do the best job for determining the NPV of large caps and the B- rate for lower quality equities.
What discount rate should be used for MPW?
The only one of the 6 that you seemed to say was currently overvalued was COR. What was the other one?
@FASTgraphs
3 ай бұрын
COR is the only overvalued one where price is above the orange line-easy to see. AMP fully valued.
Great video Chuck! What are your thoughts on PayPal currently?
@user-nx8bg7nt7w
3 ай бұрын
I sold paypal to buy block (SQ) a few months ago. As a younger investor I have a longer outlook and prefer block. Worth a look!
great video, thank you! what are your thoughts on Pfizer?
@FASTgraphs
3 ай бұрын
In value high quality strong expected growth great yield.
I wish I found you before i invested in $MOMO 😂
Why did Global Payments not raise the dividend when earnings are growing so well?
@FASTgraphs
3 ай бұрын
That sounds like a question for their investor services department
@resipsaloquitur1775
3 ай бұрын
Maybe they have better uses for the capital? What's their ROIC are they deploying capital for growth? Are they paying down variable-rate debt (rates are high) or buying back their own bonds at lower prices than issued? Are they buying back stock at reasonable or undervalued prices? Dividend, technically speaking, is the last thing a company should use its capital for (i.e. if it has no better uses for it).
@chuckdiezel7652
3 ай бұрын
They are reinvesting internally at good rates. GPN not known for dividend prowess