Nice explanation overall but just to clarify if there is a typo at cell A9 in your excel calculator? Should row A9 be "Terminal value at the end of year 10 ... " instead of " ... year 5 ... "? Consequently, the value at cell B18 is affected too given that the NPV should be discounted over a period of 10 years too, not 5 years. It appears that the intrinsic value should be closer to what Morningstar's calculation of around USD $300 + per share. Can you confirm again? Thank you.
Thank you Victor for your research on this very informative video. Being in the healthcare industry, I like ISRG especially during high inflation periods.
Thanks Victor. Big fan. Can you please do an analysis on Cloudflare? Company should continue to grow rapidly for the next decade, but the stock might take more punishment because it's a P/S company. I'm currently waiting for a bigger dip to add more shares. Would love your input Thanks
Thankyou for sharing Victor. I Really want to own costco but the china growth seems to be baked into the price. I've watched a few of your videos but havent subscribed until I knew you were not just a "buy everything channel".
Thanks Jason, I don’t know if China growth is already baked in Costco’s price. I’m just waiting for Costco to drop close to my fair value before buying. I always like to wait for stocks become undervalued first before buying to reduce risks.
Why do you use 7% as the discount rate? It looks like you take cost of equity and add a small buffer. Why not use actual WACC of the company or a discount rate based on your desired investment return? Thanks!
Good question. I remember the WACC is actually lower than 7%. One option, like you suggested, is to use our own desired/required investment return. I’m just using a discount rate that’s slightly above the cost of equity and WACC to show how to estimate Costco’s intrinsic value.
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Nice explanation overall but just to clarify if there is a typo at cell A9 in your excel calculator? Should row A9 be "Terminal value at the end of year 10 ... " instead of " ... year 5 ... "? Consequently, the value at cell B18 is affected too given that the NPV should be discounted over a period of 10 years too, not 5 years. It appears that the intrinsic value should be closer to what Morningstar's calculation of around USD $300 + per share. Can you confirm again? Thank you.
alright man, you got a new subscriber here for analyzing costco.
Excellent video Victor! Very informative, keep the videos coming!👍
Great overview! It's down lately. I'm hoping for it to fall to 460 before I pick some up
Thank you Victor for your research on this very informative video. Being in the healthcare industry, I like ISRG especially during high inflation periods.
Thanks Olivier, Did you buy ISRG? I’ll likely be analyzing it in the next two months.
@@TheIntelligentInvestor looking forward to your analysis of isrg balance sheet..
@@TheIntelligentInvestor I bought isrg over the years and bought more pre split a few weeks ago. I am planning to buy more on a pull back
@@TheIntelligentInvestor isrg has an outstanding management team and business model. Plus, they own the market of surgically assisted surgery,
If high inflation lowering my buying power, I will turn to Costco to buy my daily needs. Costco get me as new customer.
Thanks Victor. Big fan. Can you please do an analysis on Cloudflare?
Company should continue to grow rapidly for the next decade, but the stock might take more punishment because it's a P/S company. I'm currently waiting for a bigger dip to add more shares. Would love your input
Thanks
CAN YOU ANALISE THE STOCK TICKERS ATVI AND MU PLEASE 👍
Thankyou for sharing Victor. I Really want to own costco but the china growth seems to be baked into the price. I've watched a few of your videos but havent subscribed until I knew you were not just a "buy everything channel".
Thanks Jason, I don’t know if China growth is already baked in Costco’s price. I’m just waiting for Costco to drop close to my fair value before buying. I always like to wait for stocks become undervalued first before buying to reduce risks.
Why do you use 7% as the discount rate? It looks like you take cost of equity and add a small buffer. Why not use actual WACC of the company or a discount rate based on your desired investment return? Thanks!
Good question. I remember the WACC is actually lower than 7%. One option, like you suggested, is to use our own desired/required investment return. I’m just using a discount rate that’s slightly above the cost of equity and WACC to show how to estimate Costco’s intrinsic value.
Hello! can you talk about TESLA stock ? like and subscribed (y)
Yup, I made several Tesla videos already. I’ll make an updated one once Q4 delivery comes out.
Take a shot every time he says Costco 😂
Is there any way I can see your list of stocks? You seem like you know your stuff 🙌🏼😊
Lol I post it in my Patreon Blog
Costco is overvalued, PEG Ratio greater than all of the FAAMG stocks.
Better buy FAAMG instead
But it does pay dividends also. PEG is not the only way to value stocks