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:
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