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Published on 12 March 2021 by **Invest Mindset**

Views: 1,166,567

Duration: 12:43

Views: 1,166,567

Duration: 12:43

How To CALCULATE INTRINSIC VALUE of a STOCK? in HindiTickertape:- https://ttape.in/YZuTGW4MzdbFree Demat Account with Angel Broking: https://tinyurl.com/y8k2v9htUpstox: https://upstox.com/open-demat-account/?f=ZVKZWarren Buffett says the three most important words in investing is "Margin of Safety". But most people don't know how to calculate the intrinsic or the actual value of a stock (shares), or even a fair value so how are they going to use the margin of safety?In this video, I help to find out the real or the actual (intrinsic value) of the stock (share) with the discounted cash flow approach and then I explain it in detail using the Price to Earnings ratio (PE ratio) in simple language using the Golden Rule of Valuation: The Value of any asset is the present value of all the expected future cash flows.Since the stock (share) market is an auction market, so the stocks are not sold at fair price but are put on sale in the auction and every time a stock becomes popular, it becomes extremely overvalued, and hence too risky for beginner investors. This is why, many famous and rich value investors such as Warren Buffett, Charlie Munger, Benjamin Graham, Rakesh Jhunjhunwala and other mutual fund managers do intrinsic value calculation before they look at the stock price for buying.We can find the price of stock easily by doing a simple google search but the intrinsic value is something you need to find yourself by doing some basic calculations. The reality is, finding intrinsic value is easy but you just need to understand some basic concepts, do the analysis and your fundamental research and get a good understanding of compounding, discounting, and cash flows in a business.However, as discussed in the video, the most important task is to identify and understand the quality of stock (business) only then, do you get the confidence to invest more in an undervalued stock and become a true value investor to make money and get rich from stocks.Timestamps: 00:00 Warren Buffett on Most Important Thing in Investing00:08 What is Margin of Safety in Value Investing?01:48 Calculating Intrinsic Value of a Business03:25 Intrinsic Value Simple Formula04:52 Understanding DCF (Discount Cashflow Method of Valuation)07:18 Golden Rule of Valuation07:52 Understanding Price to Earnings (PE Ratio)10:16 Tickertape (Sponsor for the video)10:38 Important Lesson in Investing11:56 OutroIf you liked the video then don't forget to subscribe for more quality videos like these and share it with your friends. :)

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