Wednesday, 5 March 2014

Warren Buffett Intrinsic Value Calculation - A stock must be undervalued



"Intrinsic value can be defined simply: It is the discounted value of the cash that can be taken out of a business during its remaining life." - Warren Buffett

"As our definition suggests, intrinsic value is an estimate rather than a precise figure, and it is additionally an estimate that must be changed if interest rates mover or forecasts of future cash flows are revised. Two people looking at the same set of facts, will almost inevitably come up with at least slightly different intrinsic value figures." - Warren Buffett


"The cash that can be taken out of a business during its remaining life." - Warren Buffett

"In other words, the percentage change in book value in any given year is likely to be reasonably close to that year's change in intrinsic value." - Warren Buffett



@ 20.15 Finding intrinsic value of Disney (using MSN Money)

BuffettsBooks.com. calculator
http://www.buffettsbooks.com/intelligent-investor/stocks/intrinsic-value-calculator.html

1 comment:

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