How to Value a Stock - Picking the Best Valuation Method for Each Company

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  • čas přidán 29. 05. 2024
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    In this video, we walk through some different ways to value a stock and try to show what companies are best valued using the different methods.
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Komentáře • 155

  • @xXxIMMORTALxXx
    @xXxIMMORTALxXx Před 3 lety +82

    My gosh you're the greatest investing teacher of all!!! Why did I just come across your videos!!?? Those CZcamsrs out there only give general guidance on how to invest in stocks but you're the only one I found by far who actually gets into the meat of how to value companies. I've just started out on this investing journey. I took intro to accounting and finance class but yet I'm still wondering what ratios I should use to value stocks. You've laid it all out very nicely. Thanks a lot! I already subscribed to your channel. You've just got yourself a new subscriber from Thailand :)

  • @arjunraj4399
    @arjunraj4399 Před 3 lety +4

    People doesn't know the real value of this channel.
    It worths more than billion subscribers

  • @bilalelkaouini5159
    @bilalelkaouini5159 Před 2 lety +1

    Best CZcamsr on stock. So simple is that no doubt about that. He explain everything to know. So I will check every video of you.

  • @marcmini8137
    @marcmini8137 Před 3 lety +4

    wow brother one of the best on youtube! i remember watching you a year or 2 ago when u had 15k subscribers now ur over 100k! its amazing to watch good for u!

  • @jesbensommichael8397
    @jesbensommichael8397 Před rokem +54

    Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking the bold steps we need in other to reach our goals.

    • @raychristopher7797
      @raychristopher7797 Před rokem

      I think it's not always about fear, Sometimes realistic factors discourage people from reaching their goals in life. For instance, I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value

    • @jesbensommichael8397
      @jesbensommichael8397 Před rokem

      @@raychristopher7797 This is the problem! Most times people with little or no knowledge of the stock market try investing by themselves. It once happened to me, then I learned my lesson and contacted a US-based finance consultant by name MARTHA ALONSO HARA and everything changed. I started enjoying huge returns from my investment.

    • @raychristopher7797
      @raychristopher7797 Před rokem

      @@jesbensommichael8397 Oh, that sounds good but how do I reach out to MARTHA ALONSO HARA

    • @jesbensommichael8397
      @jesbensommichael8397 Před rokem

      @@raychristopher7797 Look up her name on the webpage

    • @raychristopher7797
      @raychristopher7797 Před rokem

      @@jesbensommichael8397 Okay, thank you. I just found her website very impressive and dropped a message for her.,. I hope she replies to me

  • @pandabossanna
    @pandabossanna Před 3 lety +61

    Absolutely brilliant! More people need to see this.

    • @LearntoInvest
      @LearntoInvest  Před 3 lety +7

      Hey, I was just checking out some of your videos, very interesting. I've got an idea for a collaboration video. Let me know if your interested 👍🙂

    • @pandabossanna
      @pandabossanna Před 3 lety +2

      Learn to Invest hey! Not sure if you saw my reply on my video but I’m definitely interested :)

    • @LearntoInvest
      @LearntoInvest  Před 3 lety +2

      @@pandabossanna I'm sending you a message on Instagram

  • @Steven-wq8tx
    @Steven-wq8tx Před 3 lety +6

    I’ve been passive investing for nearly a year now and I’m slowly trying to learn how to valuate companies so this video is pure gold for me. Thanks so much! I’m definitely going to be checking out more of your videos

  • @johanrosario2915
    @johanrosario2915 Před 3 lety +11

    Realy realy THANK YOU Jimmy... This helps A LOT, and the fact that your giving this for free, is amazing. Wishing you all the best!

  • @ETS186
    @ETS186 Před 3 lety +17

    Jimmy, I don't know how Google/YT determine how your videos can monetize the ads shown, but I make sure I let ads on your videos to run all the way through to support your channel. Keep doing what you do. Much love from Indonesia!

    • @LearntoInvest
      @LearntoInvest  Před 3 lety +3

      Much appreciated 👍🙂 thanks for the support!!!

  • @aritrabhattacharjee3949
    @aritrabhattacharjee3949 Před 3 lety +4

    Very Well Done. Cleared many doubts that I had. I actually made my investing xls sheet based on your videos. This one will help refine things even further. Thanks !!!

  • @henrymichal8522
    @henrymichal8522 Před 3 lety +6

    Hi Jimmy, I always find your videos interesting and informative. You'd make a great teacher of finance. Thanks again.

  • @christianh.riiser2807
    @christianh.riiser2807 Před 3 lety +5

    Excellent video - an understandable overview and methodology of the challenging task of valuing a company - haven't seen this done before - thumbs up Jimmy 😀

  • @randomloverboy
    @randomloverboy Před 3 lety

    I’ve been looking for this video for so long!!! Yes, a lot of those systems don’t work for all so I never know when to use the right one! This should’ve went viral!

  • @danraes5661
    @danraes5661 Před 3 lety +2

    This channel is insanely underrated. Amazing content guys. You are truly providing quality education.

  • @Merritt_Life
    @Merritt_Life Před 3 lety +3

    really like the video! will have to use it in my portfolio!

  • @georgehadley7863
    @georgehadley7863 Před 3 lety +3

    Great video, well done in explaining stock valuation methods in an easy and understandable format.

  • @Adrian-cn5rk
    @Adrian-cn5rk Před 2 lety

    I was looking for this bit of info. and no channel has done this, at least none I've come across so... THANK YOU!

  • @thatotherguy4245
    @thatotherguy4245 Před 3 lety +2

    Excellent video, thanks for posting...definitely a better explanation than what I got in my MBA classes

  • @learningfinance4807
    @learningfinance4807 Před 3 lety +13

    Very well explained summary of a finance course.
    Better than many professors i had at university 😉
    I don’t like to use multiples in this very moment though.. I prefer DFCF

  • @adamhajdawood1044
    @adamhajdawood1044 Před 3 lety +2

    Findaly a video explains it all, as always great contant your channel brings in a lot of value keep it up Jimmy ^^ thanks

  • @SpeedandSplendor
    @SpeedandSplendor Před 3 lety +3

    Great overview .. good place to start for fundamentals. Thanks for putting this together :)

  • @David.Marquez
    @David.Marquez Před 3 lety +8

    Truly awesome content Jimmy, It's crazy how much I can learn in an almost 13 minute video.

  • @TJI604
    @TJI604 Před 3 lety +5

    How on earth do you not have 2-3 times more subscribers, Jimmy? Keep up your great videos!

  • @sarud4562
    @sarud4562 Před 3 lety +3

    Yes I was waiting for this video Thanks Jimmy

  • @laroniverse4310
    @laroniverse4310 Před 3 lety

    This is absolutely informative. Everything in a nutshell. I hope you make one video of each model and dive deeper for better understanding. Thank you so much.

  • @jakemanley1457
    @jakemanley1457 Před 3 lety +1

    Amazing video as always keep them coming! You have taught me so many great things and you organize thoughts so well! Thanks

  • @Baromem
    @Baromem Před 3 lety +2

    This channel is amazing, thank you for the knowledge!

  • @heshamk4824
    @heshamk4824 Před 3 lety +2

    Amazing Video , I can use that .
    Thanks Jimmy

  • @moniquefox5830
    @moniquefox5830 Před 2 lety +1

    A guy at Savings and Investing for Beginners gave me the link to you. I watched 2 so far. Good stuff. 😀😁😀😁

  • @Dj-uy1kp
    @Dj-uy1kp Před 3 lety

    I love your videos dude, you're the best!!

  • @akhilbisht798
    @akhilbisht798 Před 3 lety +2

    You are brilliant learning more from you ...

  • @jacobbrooks3957
    @jacobbrooks3957 Před 2 lety

    This is a fantastic video for making sure you don’t become too reliant on any one valuation module. Thanks.

  • @FunanShi1
    @FunanShi1 Před 3 lety

    Very informative! One thing to note that the first two tries to calculate the "intrinsic value" of a business, i.e what the business is really worth, but multiples don't get you that, it is a tool to compare two companies

  • @olganazarov9048
    @olganazarov9048 Před 3 lety +2

    Love your videos.. watch them all 👍

  • @AllNighterHeider
    @AllNighterHeider Před 3 lety

    My friend, your channel is under valued. I don't know how this video slipped under my LTI radar. Great content, you really are one of the best. I'll be sharing more of your videos.

  • @nafizhaq4554
    @nafizhaq4554 Před 3 lety +1

    Guy you deserve more applaud than your current user subscriber base 👍 keep up the good work

  • @oz1161
    @oz1161 Před 3 lety +3

    Awesome video!

  • @6toolbaseball
    @6toolbaseball Před 3 lety +1

    Jimmy is better than all my MBA classes hahah

  • @khamady
    @khamady Před 3 lety +2

    Awesome summary Jimmy! Well done.
    Question: can you please define terminal value & how does it impact valuation method like DCF? Much appreciated mate!

  • @darxcide7375
    @darxcide7375 Před 3 lety +2

    Currently using this on my investment banking internship lol thanks Jimmy 😁👍

  • @jklfghjkl
    @jklfghjkl Před 3 lety +1

    Thank you. Knowing the basic must be a requirement before investing to a company. Thank you very much. God bless 🇨🇦

  • @charlesburry7898
    @charlesburry7898 Před 3 lety +1

    Damn ! I love this channel ; I feel like I'm in school ; I keep taking notes

  • @thomasa9685
    @thomasa9685 Před 3 lety +6

    Helpful video! You mentioned dividend evaluations for Reit and ETF. Can you make a video going over DCF for ETF's?

  •  Před 3 lety +2

    Respect Jimmy, awesome job mate

  • @AndrewLetendre
    @AndrewLetendre Před 3 lety +11

    Findaly, another video!

  • @corybeyer1
    @corybeyer1 Před 3 lety +1

    Great video!!

  • @cricbuzz1123
    @cricbuzz1123 Před 3 lety +5

    It would be great if you can make videos analyzing companines based on their current data for each of these models. It will help illustrate the points best way. Thanks again for a wonderful video

  • @SaulGoodman1108
    @SaulGoodman1108 Před 2 lety

    Thank you Jimmy, really appreciate this video.

  • @user-dg3km3ke1j
    @user-dg3km3ke1j Před 3 lety

    Thanks for sharing! Brilliant!

  • @WOLF91
    @WOLF91 Před 2 lety

    Thanks man. Really valuable info

  • @isaaccryer4640
    @isaaccryer4640 Před 3 lety +2

    Great video thank you

  • @helloelloh
    @helloelloh Před 3 lety +1

    Jimmy you’re absolutely the best ⭐️👏🏼

  • @8inuplp182
    @8inuplp182 Před 3 lety +1

    Yep, he understood very well KMI, OXY, IBM, and airlines companies.

  • @jacobli2297
    @jacobli2297 Před 3 lety +1

    Awesome video as always Jimmy, it might be an interesting video to look into Macy’s

  • @Rhino11111111
    @Rhino11111111 Před 3 lety +2

    I just use the Benjamin graham formula. Buy at 50% discount value then sell half at 0. Rinse and repeat. It’s worked so well for me.

    • @TheGrandMgM
      @TheGrandMgM Před 3 lety +1

      Is that the eps*(pe+2g) ? Also how long was the average time to get back to fair value? Thanks

  • @divad6202
    @divad6202 Před 3 lety +1

    It findily resonates with me. Thank you!

  • @tgymartin
    @tgymartin Před 2 lety

    best video ever! thanks for sharing

  • @vasyazor4890
    @vasyazor4890 Před rokem +1

    You're an awesome teacher, Sir! Thanks for your efforts. Your channel is undervalued i general (huge Marign of Safety :P)

  • @masonterwilliger3115
    @masonterwilliger3115 Před 2 lety

    Wow we are blessed to have you

  • @hagerjewelry1224
    @hagerjewelry1224 Před 3 lety +2

    great video!!!!!!!!!!!!!!

  • @abnc799
    @abnc799 Před 3 lety +5

    What a legend

  • @seriesclips8227
    @seriesclips8227 Před 3 lety +1

    Great video jimmy imsightful as always ! I think a video in wells fargo would be super interesting or video in the position of bank stocks right now
    Keep up the good work !

  • @sdsd6258
    @sdsd6258 Před 3 lety +4

    Keep up the good work :)

  • @mountgimmie
    @mountgimmie Před 3 lety

    This is a very useful video.

  • @razvan62
    @razvan62 Před rokem

    Thanks!

  • @andrewconroy9588
    @andrewconroy9588 Před 3 lety

    Your videos are really amazing and thank you for sharing the knowledge. When you get time would you be able to upload videos for the Asset and Value Multiples models please?

  • @ahmedxh
    @ahmedxh Před 3 lety +1

    Would you explain excess return valuation for banks as it makes since the most for financial institutions? You will be the first on CZcams

  • @user-wb6gh5tg6w
    @user-wb6gh5tg6w Před 3 měsíci

    I appreciate your approach to teaching.. To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough, we just need to hold onto our hopes and wait to see how things turn out because market movements are almost always unpredictable. In my portfolio, I'm noticing more red than green.

  • @rhess2989
    @rhess2989 Před 3 lety +2

    I have learned so much from your vids I`m getting much better gains now and have changed much of my investments the last few months. Knowledge +Timing=$$ Your a great teacher. Thanks and keep `em coming!

  • @sagig72
    @sagig72 Před 3 lety +3

    Fantastic video Jimmy!

  • @marcusseuser5984
    @marcusseuser5984 Před 3 lety +2

    Great Video Jimmy, as always!! Have you ever considered valuing a SaaS business, especially one that is not profitable, such as Coupa or Blue Prism with methods like Rule of 40. I think this could be very interesting.

  • @stephenhall4115
    @stephenhall4115 Před 3 lety

    Great videos.

  • @red149
    @red149 Před 3 lety +5

    Jimmy, these are all good valuation methods when you have a sound currency . In an environment where Fed magically pulls 3T$ out of the hat we don’t have a reference. It becomes a moving target !

  • @salmanhaidr
    @salmanhaidr Před 3 lety +1

    A very very underrated video, such contents in India gains 10 million views.

  • @Darrentime
    @Darrentime Před 3 lety

    thanks!

  • @ShiloTal
    @ShiloTal Před 3 lety +4

    Once again, great video. Would love to see BRK.A and BRK.B analysis.

  • @alexanderpike1641
    @alexanderpike1641 Před 3 lety

    Hey Jimmy, do you think a Dividend Discount Model valuation would be good for a company like AT&T? Or for a company with a high payout ratio (besides REITs)?
    Great video as always!

  • @ceejaydeesoozaa
    @ceejaydeesoozaa Před 3 lety +2

    how many polo rl shirts do u own jim. thihis is my 2nd vid. amazing content

  • @paulocruz676
    @paulocruz676 Před 3 lety +2

    First of all, congratulations. You have amazing videos and you explain it very well.
    Even for me who is a beginner in investments and don't speak English as mother language.
    Due to that, I'd like to kindly ask you to keep subtitles like your previous videos.
    And one question: asset models valuation is based on deep value investing from Benjamin Graham?
    I couldn't get that one very well...I'd like to confirm.

    • @Squintillions
      @Squintillions Před 3 lety +1

      Paulo Cruz - you should be able to turn subtitles on in the settings. If you watch a video soon after it is posted, sometimes the subtitles are not available yet. They are there now.

  • @dujunzhai2198
    @dujunzhai2198 Před 3 lety +1

    very good

  • @operationcenterbravo
    @operationcenterbravo Před 3 lety

    I love the metric PEG ratio.

  • @srikanth9450
    @srikanth9450 Před 2 lety

    This video is really streaming at a huge discount/under valued. I hope it will stream at a fair value once it reaches at least 1 million views. Can I request you to put up a video on sum of parts and NPV/NAV valuation methods?

  • @jorgesa4244
    @jorgesa4244 Před 2 lety

    Hi Jimmy, for the valuation using multiples, you pick a multiple (ev/ebitda or p/e or another) but you multiply that multiple by which number? How do you choose that number?

  • @javierjp8549
    @javierjp8549 Před 3 lety +1

    Nice chap, please take my like

  • @CrypticTranscendence
    @CrypticTranscendence Před 3 lety +2

    Hi Jimmy, love your videos. Couple of questions as someone who is new to finance:
    1. What do you mean when you say that the FCF in financial companies are skewed relative to other companies, and how does said skewed FCF throw off the DCF method?
    2. Why wouldn't the DCF method work for non-blue chip companies that aren't financial companies?

    • @investor9482
      @investor9482 Před 3 lety

      For question 2, I would assume it’s because non-blue chip companies are mainly growth companies and usually either don’t have positive free cash flow or a very hard to calculate FCF. They have less analysts and thus less future FCF estimates and a higher likelihood of the estimates being far off from what really happens. Basically, they are a completely different type of equity class to value.

  • @Smart_Investing
    @Smart_Investing Před 3 lety +1

    My channel is dedicated to evaluating stocks using P/E ratios and other financial data. I use free cash flow instead of DCF. I didnt think you could use DCF as fair value ...nice video!

  • @skywalker2840
    @skywalker2840 Před 3 lety

    What is the best way to value energy stocks and utility stocks?

  • @naderjavanmardi7868
    @naderjavanmardi7868 Před 3 lety +2

    Seriously do you think that Tesla stock buyers at this price levels watch/know valuation methods? Good job Jimmy.

    • @Dimitris_1987
      @Dimitris_1987 Před 3 lety +1

      I was researching Tesla for months back in 2019. I understood their leading abilities, their business model, their scale capabilities etc, but I couldn't be able to value them as they were unprofitable back then. Then Jimmy posts a video and discusses about the EV/EBITDA metric of Tesla. It was 20 at 200$. It was the click for me to buy. I got in at 219$, sold three weeks ago at 1398$. I'm super bullish on Tesla as a company, I understand where they can go and what they can do, but the current price is not justified by logic. I keep it in my radar and I will definitely buy if it drops below 600.

    • @investor9482
      @investor9482 Před 3 lety

      This comment caught me off guard 😂

    • @investor9482
      @investor9482 Před 3 lety

      Dimitris honestly I was way off on Tesla. I thought the fair value would be around 700 within the next 3 years. But then again I wasn’t factoring in the “story”, short squeeze, retail “investors” (speculators) etc. Just a cold cut view on fundamentals and potential

    • @Dimitris_1987
      @Dimitris_1987 Před 3 lety

      @@investor9482 Totally agree. I was saying some days: "These bloody bastards will make me sell!" And they did eventually. It was a good lesson learnt by the market about short squeezes, retail investors, bubbles etc.Back then when I entered everyone was saying the opposite, that the company will go bust. Every kid behind a laptop buys fractional shares of Tesla right now, when even kids start buying shares you have to sell.

  • @r4riaz
    @r4riaz Před 3 lety

    Great content. But theoretical. It would really help to understand each method by evaluating a stock, without which it is just like book reading. Hope this will help for your future videos.

  • @LivingInGB
    @LivingInGB Před 3 lety +1

    I have that same shirt on right now

  • @trenholmelodge1820
    @trenholmelodge1820 Před rokem

    Major problem is where do you obtain the info for the DCF data in the future.

  • @MX4551
    @MX4551 Před rokem

    Very good video! Which Method would be most appropriate to value Health Care stocks for e.g. AbbVie, Pfizer, Bristol-Myers Squibb,... Thanks (Community)!

  • @jabrealsouthjersey
    @jabrealsouthjersey Před 2 lety

    It would be really helpful if while you was explaining how to value a stock that you used a company (like you did with how to read an income statement and used Nike as the example company) while you was teaching the different ways to do that.

  • @pwells10
    @pwells10 Před rokem

    9:07 I am curious if your TSLA evaluation was accurate

  • @anothermatt618
    @anothermatt618 Před 3 lety

    I would like to request a CZcams video doing an example with a company using asset based models. I see in descriptions links to others discussed in this video but not that one.

  • @robertog7450
    @robertog7450 Před 3 lety

    Jimmy you are the best . Would you be able to analyse the fair value for Thermofisher Scientific (TMO). my calculation come with a value that is much much lower than what they are currently trading on. I would like to have your view on this

  • @phyzix_phyzix
    @phyzix_phyzix Před 2 lety +1

    How do you properly value an insurance company? Wouldn't the liability of underwriting be present in the FCF if the company has been around for a long time (10+ years)?

    • @LearntoInvest
      @LearntoInvest  Před 2 lety +1

      Something like price to book value tends to work very well for insurance companies

  • @Blitcliffe
    @Blitcliffe Před 10 měsíci +91

    I am aware that continuing to invest during periods of volatility can be a smart way to build wealth. I’ve heard testimonies of people accruing over $250k this red period. What measures can I take to ensure this?

    • @sheltonPston
      @sheltonPston Před 10 měsíci +1

      very true, I started investing before the pandemic and that same year I pulled a profit of about $600k with no prior investing experience, basically all I was doing was seeking guidance from a financial-advisorr, you can be passively involved with the aid of a professional.

    • @sheltonPston
      @sheltonPston Před 10 měsíci +1

      I started out with an FA named Nicole Desiree Simon Her honest approach gives me complete ownership and control over my position, and her rates are incredibly affordable given my ROI.

  • @okayq
    @okayq Před 3 lety

    good

  • @CapitalWorksPro
    @CapitalWorksPro Před 3 lety

    Jimmy, please make a video explaining Warren Buffett's "equity bond" concept.