This is the last tutorial but it's a doozy.
I cover how to use OSV Online to do a DCF, Graham's formula and EBIT valuation.
Because it's too long for an email, I've created a guide for you to download and follow along.
If I have to sum up valuation in one sentence, it's this.
Valuation is more art than science.
Depending on what the latest growth estimate or EPS is, valuation will change. Depending on your outlook vs somebody else, valuation will be different.
Keeping with the art theme.
Think of the valuation methods as a paintbrush.
A paintbrush is simply a tool. Depending on the person, a paintbrush could be used to paint a wall, abstract art, graffiti or a beautiful landscape.
There are many people who don't understand this. A real example of what valuation is not.
Sorry to leave the service after using it for only one day.
Doing my very first stock research yesterday and today I found an inaccuracy that makes me feel that I have to recheck the important indicators myself before relying on it. (e.g. regarding the Graham valuation calculation of AMKR - yesterday it was calculated as $15 but today it shows up as $5 even though the stock reported ok numbers and lost about 10% over night).
With latest results, AMKR growth estimates is adjusted down due to many factors. Calculating the upside and downside scenario should have covered this. One of the main reasons why auto valuation is not encouraged for screening.
Download the valuation guide PDF to read and see examples of how to use the DCF, Graham and EBIT valuation. I've kept it as simple as possible, otherwise it will become a textbook.
Click this link to download the PDF directly.
You can also download this from within the application any time.
Go to Menu > Download Area and other documentation will be waiting for you too.
I hope you have been finding the tutorial series helpful.
Would you mind doing me favor?
Can you comment below and let me know
- why you are using Old School Value?
- any specific tutorials you want?
- you learned a lot
- you understand how to think through and use the system we provide
- you profit
Customer support service by UserEcho