21. Warren Buffett Intrinsic Value Calculation - Rule 4

welcome to course to unit 3 lesson 5 warren buffett's fourth rule determining the intrinsic value of a stock in this lesson we have two lesson objectives the first is how do we calculate the intrinsic value of a stock and the second is how do we use the Buffett's books Comm intrinsic value calculator so let's get started ok so here we are at the last rule for warren buffett and this is the most complicated rule and that's determining whether a stock is undervalued or not ok so in the three previous lessons we were looking at the three previous rules of warren buffett has and we were comparing Sirius XM radio and Disney to kind of understand those rules and those principles and so when we looked at Cirrus the first rule that we were looking at was whether the company was managed by vigilant leaders and so we were looking at the debt and so for Sirius they had a lot of debt and it didn't meet that rule and as you know from the previous lessons all four rules must be met in order for Warren Buffett to invest in one of these companies so since that rule wasn't met immediately we'd be done looking at Cirrus and we would know we wouldn't go any further as far as assessing its value but we'll continue to go down through the rules so we can kind of do a comparison now with respect to Disney on the first rule we looked at their debt and it was manageable through all the last ten years in the forecast looked like it was going to be more of the same now with respect to the second rule for XM radio you know we kind of briefly talked about how we don't kind of anticipate that having long term prospects in 20 or 30 years from now whereas for Disney we do see long term prospects then the third rule for XM radio the numbers were not stable that book value was all over the place that debt to equity was all over the place and so with Disney we saw a very stable company and something that was very predictable that is absolutely essential as we move into this lesson where we're trying to calculate the intrinsic value without having a stable company we can't make a very good estimate of how the earnings and how much growth the company is going to have in the next 10 years so for XM radio I wouldn't even do the intrinsic value calculation for that because the company wasn't stable but for Disney we can do that so let's go ahead and take a look at rule number for calculating the intrinsic value for the Walt Disney Company and we know that the market price in the middle of May 2012 is 44 dollars and 33 cents so we've identified that Disney is a great company but is it worth the 44 dollars and 33 cents per share and that's what we're going to figure out in this lesson before we find the intrinsic value of Disney I'm first going to start off teaching you how the intrinsic value calculator works if you get lost during this course and that's fine I have a couple practical exercises for you to work on and for you to try out so just kind of stay with me and I think it'll all work out in the end okay so how do we determine the intrinsic value of a company so if you go to Berkshire Hathaway and you read his owner's manual that he has for Berkshire Hathaway he gives some hints on how he determines the intrinsic value of a company and so this is some direct quotes from Warren Buffett and he says the 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 okay then he goes on to say 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 move or forecast for future cash flows are revised to people looking at the same set of facts will almost inevitably come up with at least slightly different intrinsic value figures so keep that in mind as we go through this the tool in the calculator itself isn't different but the way that you assess that the cash flows in the future you might take a more conservative approach than what I'm showing you and that's fine and when you do that you're going to get a different intrinsic value using the same calculator let's say you want to use a different interest rate than the ten year federal note well then you're going to get a different intrinsic value so as we start using the calculator you're going to understand why Warren Buffett has this quote because he might look at a company a little bit different than the way you view it with a more conservative eye or more liberal eye depending on the way looking at the the future cashflows so what does that mean so when he says the cash that can be taken out of the business during its remaining life what does he mean by that well he's not actually when he's when he's assessing that cash that can be taken out of the business what he's actually referring to is if I could take all the profit that the company is going to make over X number of years that I would own it how much would that add up to and so what he does is he does it for ten years into the future and the reason that he does it ten years into the future is because then he can compare that that amount that he would collect from the business with that profit for the next ten years to what he would make off of a zero risk investment which would be the ten year federal note and so he that's why he only does ten years into the future so this quote might be a little bit misleading but as we go a little bit further into this lesson you're going to understand why we're only going ten years in the future so when you're looking at a business if you remember back to the very first course with unit one where we talked about the EPS or the earnings per share this is really the magic number the EPS is the profit per share so let's assume that we have a dollar fifty of EPS which is your earnings for one year for a company and we're just going to call it company X so that one dollar and fifty cents comes into the earns now if you remember from that first course the owner which is you as the shareholder has the option to either take the first route which is you keep that money in the corporate bank account and you're going to either invest that money back into the business or pay off your debts or whatever the case is but what eventually happens with that money that you would be investing we're paying off your debts that either turns into more equity or less equity and that's going to be reflected into the book value because the book value is nothing more than equity per share okay so if you take the option one let's say that that one dollar and fifty cents of earnings comes into the company and you as an owner decide that and you wouldn't be the person deciding that actually the Board of Directors and the CEO running the company would be deciding this for you as your representative for managing the company but they would decide if that adult that one dollar and fifty cents would turn into more equity or less equity depending on how they choose to invest it or pay off their debts okay now the the second option that the Board of Directors and the CEO have in order to take that one dollar and fifty cents of earnings is that they can just give you a dividend they can just pay you okay so if a company decided to just pay all their earnings out in a dividend that one dollar and fifty cents would sit there in that bank account and then the managers would decide to just pay it out to all the shareholders so if you own one share and you got one dollar and fifty cents of earnings it would come straight out into the dividends and so what you actually see with companies is not that they take one option or the other but they actually take both so what you'll find a lot of companies do is they'll put a portion of that dollar 50 into the equity and then they'll put another portion of the dollar 50 into the dividends so they might pay 50 cents in the dividend and $1.00 into the equity of the business but that total that EPS is turning into either more equity or into dividends when I say equity I actually mean Book value because we're talking on a per share basis so I use those terms interchangeably but remember Book value is nothing more than equity per share so let's go ahead and look at this for this generic company which we're going to call company X and then after we understand how this calculation works then we'll go ahead and do it for Disney okay so here we are and we you can see the model right over there on the left what we're going to do is we're going to look at this company x over the last ten years and we're going to assume that the book value on the company which is nothing more than the equity per share back in 2002 was ten dollars okay and so our EPS is one dollar 50 Cent's and we're going to assume that that EPS was the same for ten years straight and never changed it was a dollar 50 every single year so when we see that we look at how the book value changed from 2002 to 2003 the book value increased by 70 cents okay and then we look at the dividend and they paid a 30 cent dividend so if we look at how much money that EPS turned into 20 cents was added to the book value and 30 cents was paid at the dividend and 50 cents just disappeared okay and this is what you're going to see a lot of the times when you go back and look at a company is not all of that earnings per share actually materializes into money that's that's showing up in your pocket because even though you're not actually seeing that book value payment that that equity that's being added to the business you're the market price of your company generally follows a trend with that book value so if that book value went up by 70 cents you're going to see that your market price is generally going to trend in that same direction so as we go from 2003 to 2004 you can see how the book value grew a little bit more than what it did from the from the previous year and that the dividend remain the same so the company got a little bit more efficient and that dollar and fifty cents of EPs actually went more of it into your pocket so as we go here by a year and you keep going down you can see that the book value continues to grow and at 2012 the book value got clearer up to twenty dollars and they're still paying their thirty cent dividend okay and the EPS remain the same and so if we if we sum all of the EPS that would have occurred for that ten-year period we would have had 15 dollars okay so if all the profit that that company received for one share would it ended up being fifteen dollars but when we look over at the combination of the book value in the dividend which we know is the result of our two different options it only ended up totaling thirteen dollars okay you can see the book value grew by ten and then we just summed up all of our dividend payments and that comes to thirteen dollars when we total those so over a ten-year period we essentially lost two dollars just through the system that this company was operating ok even though that that profit was made through the cracks of the system you lost two dollars in actual money that should have gone into your pocket so when Warren Buffett's talking about the cash that can be taken out of the business during its remaining life when we be looking towards the next ten years we can generally assume that this company is going to continue to off at this efficiency so not all $15 that the EPS is going to be realized you're probably only going to see about $13 if if these numbers would continue to trend like this over the next ten years so that would be the cash that you're taken out of the business that $13 that's what you're taken out of the business and that's that magic number so when we plot this over on the right-hand side you can see that I plotted the book value from 2002 to 2012 you can see that's a really nice linear looking graph and so what we're trying to do when we're trying to figure out the intrinsic value is we have to estimate how this book value is going to grow over the next ten years so if we could put a line right down on that graph and just plot that and look at the slope of it we have a general idea that is we look to ten years from now how that book value would continue to grow just as long as those earnings remain constant and you're still making those earnings of a dollar fifty or more we can generally say that this company here company X the book value would probably be around thirty five dollars when you look at that slope and how it be trending we can also assume and this is this is the assumption that you have to make whenever you're trying to estimate how much cash can be taken out of this business for its remaining life which we're doing for an additional ten years that let's just assume that that dividend is going to remain constant at 30 cents a year that 13 dollars was the cash that was gained over the past ten but your job is to estimate how much cash will be taken out of the company over the next ten years so the book value is growing linearly use the slope to predict its future value if the dividends are remaining constant or growing use that slope to predict the future payments and as you can see here stability is everything if you don't have something that's stable how are you possibly going to be able to predict something like this and the answer is you're not but always remember the book value growth and dividends come from the EPS so when we when we're trying to figure out what it's going to do in the next ten years we have to always look at what the with the analysts are saying the EPS is going to look like next year in the year after that typically there's only go two years into the future so always always always look at the projected earnings to ensure your estimated cash flows in the future are realistic so you might have a great-looking slope and everything might be linear then you go and look at the earnings that the analysts are projecting for next year and they're really low and they're not even close to where they've been over the last ten years that's something you're going to want to run away from you've got to make sure that there's earnings in the future or looking very similar to what they've been in the past because that's what's going to fuel your book value growth and also that dividend payment so let's assume that we looked at company X's future estimates and in 2013 it's a dollar 50 in 2014 it's a dollar 55 so this would trend with the dollar 50 that they've had in the past and so we could go ahead and say yeah that book value is probably going to continue to grow at that same slope that we saw in the past ten years and they're probably going to continue to make this dividend payment so that's how we can go in there and we can ask them eight what kind of cash we would get out of this business over the next ten years so here's another quote by warren buffett and this is straight off of berkshire hathaway's owner's manual he says in other words the percentage change in book value in any given year is likely to be reasonably close to the year's change in intrinsic value and that's exactly what I just taught you so use that with confidence and make sure that you're using something that's stable and not all over the place because that's going to really throw off your estimates and that's where you're assuming all your risk is in that lack of stability so what was the average book value growth for company X during the past ten years so let's go ahead and use the Buffett's ebooks.com calculator and we're going to go ahead and use this chart right here and we're going to do this for company X and we're going to go ahead and estimate how much was that book value grown over the last ten years okay so right now I have the Buffett's books a calculator pulled up which is just below this video so if you scroll down you can see that the calculator is broken down in the two different sections and what we're going to use first is the top section and what this top section is doing is we're going to come up with a very rough estimate of how much that book value is growing annually throughout that 10-year period up to now where we're at so what we're going to do is we're going to first input the current book value and so when we look over there in 2012 the current book value for company X is $20 so you're just going to put $20 in there and then we make sure you don't put in a dollar sign you're just putting in the numbers and when we look at the old book value that's ten dollars okay because that's where it started off in 2002 was $10 and then the number of years between the book values is 10 okay now if you look up there there's 11 numbers but there's only 10 years of growth between them okay so if you had 10 numbers up there you would only use nine years right here so when we hit calculate it shows you that the average book value change was seven point one seven percent a year okay so that book value when we went from 10 up to 20 over a 10-year period that was growing at seven point one seven percent now that number is really important because as we look into the for the next ten years we know that the book value right now is 20 so that gives us a good idea of what we might want to use when we estimate how the book value is going to grow over the next 10 years for the bottom calculator okay so now we can move down to this bottom calculator and we're going to use that number into this calculator so the cash taken out of the business so when we say the actual cash that's being removed from the business we're talking about that dividend okay now in this calculator I have it set up so that the dividend you only have to enter for one year and then what the calculator is going to do is it's going to sum that dividend payment as if you're getting it every single year for the next ten years so just put in the dividend payment for one year so for one year we're going to say that you would make a 30 cent dividend okay so you put in point three zero there and then the current book value the current book value in 2002 is 20 dollars so we're going to put 20 in there the average percent change in value per year so this is what we calculated above we got seven point one seven so we're going to go ahead and put in seven point one seven because that's what we expect the book value to continue to grow at so this is where Warren Buffett says that you know any two people were going to come up with different figures because this number here or if you would go back to the to the dividends and say well I think 30 cents is maybe a little bit of a high estimate or that's a low estimate maybe you might make a 35 cent dividend on average over the next ten years I like to take the most conservative approach as possible so if it's a 30 cent dividend today I'm going to use a 30 cent dividend for the next 10 years because that's a pretty conservative estimate mine paid now as far as the book value growth if this number was really high if it was over 15% I probably would say that the calculator doesn't even work at that point because that's a growth company and not a company that's stable but for here I think 7% is a pretty average growth rate so we're going to go ahead and use 7.7 so this is where the the guesswork of the intrinsic value calculation really comes in it's a matter of preference it's a matter of risk it's something that you're going to have to tailor to your specific needs but for this based off of how flat that that line is I'm going to go ahead and use the 7.17 so the years so this is going to be the next 10 years so if you're always comparing this to attend your federal Note this number here is always going to be 10 now the 10-year federal note so this is something that you're going to have to look up because it changes all the time for right now it's one point seven is the percent that you would get if you went out and bought a 10-year Federal note in the next section when we when we calculate the intrinsic value for Disney I'll actually pull up that number to show you where I would go to find that but for right now we're just go ahead and use a 1.7 percent now you'll notice I'm just putting in the numbers I'm not putting in any percents or dollar signs or anything like that for one point seven percent I didn't put in point zero one seven I put in one point seven percent okay so all those numbers are in there and then I hit calculate and then it's going to give you the in dollars and so if this was an actual company uh this calculator is saying that the intrinsic value of that company is $36.50 so that's all that's all great but you probably want to see this actually work with a real company so we're going to go ahead and move on to Disney and we're just going to go ahead and move our slide here so let's do this for real with the Walt Disney Company like I said before the market price for Disney is 44 dollars and 33 cents so let's go ahead and figure out what that intrinsic value is for Disney so here's the numbers for Disney just like we had for the company X which was our scenario we have these numbers up here for Disney now what I'm going to do is I'm going to I'm going to show you how to find all these numbers off of MSN money so let's go ahead and do that right now okay so here we are at MSN their top level page and we're just going to go ahead and scroll down and we're going to go ahead and enter the Disney ticker which is the is and hit enter okay and it pulls up the Walt Disney Company and so the first thing that we're going to look at is the the trend for the earnings per share over the last ten years okay so we go ahead and hit this ten-year summary and when you click on that it brings up our chart and we can see that the earnings per share over the last ten years are right here so we got two dollars and fifty two cents in 2011 two dollars and three cents and it just keeps on going down and you can see I have all those numbers input into this chart over here on the left now I left 2002 blank because we're using that year as a base baseline value for the book value so the next thing we're going to look at is that the change in the book value so how you find that is you come back over here to MSN Money and you're going to click on the key ratios now I want you to remember if you're joining us just at this lesson right now we've already done a lot of research on Disney looking at its dead looking at its current ratio and things like that to determine that this is a company that we can go ahead and assess so some of those steps are already skipped which you'll do for warm buffets number one is rule number two and three and so on so forth so if you're joining us right now you're kind of jumping in at the end so I'd recommend going back and looking at those lessons too before you come to this one so when we get here to the ten year summary we click on ten year summary and we got the book value per share okay and you can see the 1161 is this number at the top 1182 is the next number and it keeps going down in the current book value at the end of 2011 was twenty one dollars and twenty one cents now if you wanted to go in and get an even more current book value than that you could go into the balance sheet and you could pull up the equity and you could divide it by the total number of shares outstanding to give you an even more current book value than the one that's listed here but for demonstration purposes we're just going to go ahead and do it this way now as for the dividend payment here unfortunately they don't have the ten year history of the dividend on MSN money and also a lot of other stock listing websites so in order to do that I went to the Disney website and pulled up their dividend history and what they paid and that's how I pulled up these numbers and so that's that's very likely for you whatever company you're going to be researching you're probably going to have to go to that company's website to pull up their dividend history in order to see those numbers if you wanted to pull up the dividend that Disney is paying right now currently the easiest way to do that that's something that you can find on MSN Money you'd go to the top level page so we type in D is and hit enter and it brings you to this top level page and you would scroll down and you look at the dividend rate you can see the dividend rate is right here and that is 60 cents make sure that you're not using the dividend yield because that's taking this rate and dividing it by the current market price that's not what you want for the calculator for the calculator you want to use the dividend rate and that's 60 cents if you're going to use that for the current dividend and so that's what I'm using okay so when we look at the EPS if you remember we had some that up and it came to 15 dollars and 38 cents is how much earnings Disney made over the last uh nine years okay so from 2003 to 2011 their EP s total 15 dot 38 cents now what that actually materialized into for the shareholder was $12.68 we added up all those dividend payments and we sum how much the book value grew from 2002 to 2011 it was nine dollars and 60 cents and three dollars and eight cents for the dividends and that totals $12.68 when we look at this chart over here for Disney look how that Book value was growing very steady this is really predictable for a company and this is what we're really looking for we're looking for a company that that we can calculate their value you can't calculate the value on a company that has Book value all over the place dividends all over the place debt all over the place that just doesn't work okay so for Disney I think we can generally assess if we were going to drop a line on here and we were going to look at that slope you could tell that Disney is probably going to be around the $35 range $30 range in their book value by the year 2022 okay so here we are back at the Buffett's books intrinsic value calculator and just like before we're going to go ahead and start at the top and we're going to start off with the current book value and what we're going to do is we're going to figure out how much Disney's Book value has grown over the last ten years okay so the current book value in Disney we're going to use twenty one dollars and 21 cents the old book value which we're going to get clear back to 2002 and we're going to put in eleven dollars and 61 cents now the number of years between those two book value terms if you'd count them up is nine years okay although there's ten numbers up there you're only going to use nine years because the first is just a baseline that's not counting a full year for the growth that's just where it started off okay so we're going to put nine in there and then we hit calculate we realize that Disney's Book value has been grown at six point nine to four percent per year that's the average per year okay so we're going to go ahead and use that average book value growth let down here in the second calculator so when we look at the cash taken out of the business this is our dividend this is our one-year dividend so currently Disney's paying a sixty cent dividend as you look over the last ten years that dividend payment has been a lot lower than 60 cents they've just recently raised that up to 60 cents so for me most companies whenever they set a dividend they set that dividend at a fairly conservative value because whenever a company lowers our dividend it usually has an enormous impact on the stock price so whenever Disney raised their dividend up to 60 cents they did that probably as a pretty conservative move knowing that if they even go into hard times that they're going to be able to continue paying that 60 cent dividend so for me personally uncomfortable using 60 cents in here for the calculator you might want to use a lower value or you might even want to say that well it's 60 cents now but over ten years the average might be 70 cents or 80 cents so this is where the guesswork comes in and this is where people get different values for their intrinsic value but for me I'm gonna use 60 cents okay so I put in point six zero there and that's in dollars okay and that's for the whole year that is the dividends you'll collect for the whole year not for a quarter okay so we got 60 cents in for the dividend the current Book value for Disney is twenty one dollars and 21 cents so we're going to put that in and again make sure you don't use any dollar signs or percents in here just put in the raw numbers the average percent change in book value per year over the next ten years so I'm going to use the six point nine to four percent okay and that's what we figured out on the top calculator and that was based off the previous ten years and so I'm going to use the same number for the next ten years if you think that's too high well then you use a little bit lower figure that's up to you and if you think that that's a little low well then use a higher number okay so the years we're going to go ahead and use ten years because we're going to be comparing this to a ten year federal note okay although you use nine years on the top calculator that has nothing to do with the bottom calculator okay that top one is just how many years were between your two book value figures down here this is a completely different number that has nothing to do with your top number so don't let that confuse you you're almost always going to put 10 years in here especially you're always going to put 10 years in here if you're comparing it to a 10 year federal debt which we are okay so I promised that I would show you how I found the the current value for the 10 year federal note so I'm going to go ahead and do that now on the left hand side of the screen and I'll keep the intrinsic value calculator up on the right okay so if you go to the US Department of the Treasury you can see that's where I'm at right now and all you have to do is just type in 10 year federal note in the Google and it'll be the very first search result and so you'll click on this chart ok and you'll come down here to the date and so we're looking at the 18th of May 2012 and you'll just come over on the chart until you see the 10-year mark and you can see it's 1.71 percent for the 10-year federal note when you go up to a 30-year bond it's 2.8 but the one that we're going to be comparing and the one that we're always going to be using for our intrinsic value calculation is this rate right here so if we were doing this calculation at the beginning of May we would have been using 1.98 and so that goes back to warren buffett's quote whenever he said that you know as the future cash flows change or if interest rates move the intrinsic value is going to change and this is exactly what he means by that quote so we would have had a completely different value for Disney back at the 1st of May than what we're going to have right now so we're going to go ahead and put in a 1.71 okay and we're going to hit calculate and it says that the value of the intrinsic value of Disney based off of those numbers is 40 dollars and 43 cents okay so if you are watching this video from YouTube this intrinsic value calculator is found at WWF its books calm under the course to unit 3 lesson 5 AB if you want to go directly to the calculator this is the web address that you would follow it's HTTP www.facebook.com/news.about.syria price that it's currently trading for on the market is 44 dollars and 33 cents when we use the intrinsic value calculator we found that the value of Disney is 40 dollars and 46 cents when compared to the ten-year Federal note so what does that mean what does that 40 dollars or 46 cents mean that means if you could buy is knee right now for 40 dollars and 46 cents we estimate you get a 1.7 percent annual return on your money for the next 10 years that's if you could buy it for 40 dollars and 46 cents it's trading for even higher than that it's trading for 44 dollars and 33 cents so that means you're even going to get a worse return than the 1.7 percent over the next 10 years if you'd buy it at that current market price to answer the question here is Disney undervalued the answer is no it's not undervalued it's actually overvalued so although while Disney Company had checked out on the first three rules when we came to the fourth rule was the company undervalued that's a no and so therefore we would not buy this company because it's overvalued so let me show you something else that's pretty interesting when we come back over here to the intrinsic value calculator and we were using the ten-year Federal note at 1.7 1% and we're using that because that's considered a zero risk in that investment so if I was given the choice between buying Disney for 40 dollars and 46 cents or investing in a 10 year or federal Note which one am I going to choose well obviously I think I would pick the 10 year federal note because that one has zero risk where the Disney Company has more risk that it might not produce those returns that we estimated they could be higher they could be lower so when you're faced with that option and the price is exactly the same as what you just calculated well the bond is obviously the better choice so let's figure now what kind of return we would get for that forty-four dollars and 33 cents that it's currently trading for so in order to do that we're just going to come in here under this ten-year Federal Note tab where we put that number in and let's go ahead and lower that let's put it in as a 1% we'll just put it as 1.0 and see what value we come up with okay so when we put it in as 1% return the intrinsic value moved up to 43 dollars and 18 cents which we're still not at the price that it's trading for so let's go down to 0.8 percent okay and there you go where we're getting pretty close to the value that it's trading at so if you would buy Walt Disney and forty-four dollars and 33 cents you could expect to get 0.8% return on your money over the next 10 years so that's not very good and you can see that this company is trading for an enormous premium right now way higher than I would ever buy it at and so it this gives you a real good idea of how you're doing that so what I want you to do is I want you to come in here and I want you to play around with this calculator I want you to get used to seeing how these numbers move when you have a higher federal Note value in there you're going to see that that's going to drastically change that intrinsic value and it's going to make it really easy for you to determine hey I need to be buying bonds or hey I need to be buying stocks because they're a really good value right now this calculator is going to help you out so much and I really hope that you get a lot of use out of it and if you have any questions at all I really encourage you to go ahead and click on the tab above on this website for the forum if none of this made any sense or you have questions on how the calculator works going and sign up for that forum and just start asking those questions and I'll be more than happy to get in there and answer them for you and hopefully provide you some feedback that will help you start calculating the intrinsic value of these companies so that's it those are his four rules we covered all four of them the last one here a stock must be undervalued we demonstrated that with the Disney Company and what I think was kind of unique is we we went through the first three rules and we had the Disney Company checking out for all three of those rules but when we finally made it to the fourth rule which is the really important one that whether the stock is undervalued unfortunately for for Disney in this case it was overvalued and it didn't check out on that fourth rule so if we were exercising Warren Buffett's rules we would not be buying any shares of the Walt Disney Company because it didn't pass that final rule so this concludes course to unit 3 lesson 5 Warren Buffett's fourth rule determining the intrinsic value of a stock we learned how do we calculate the intrinsic value of a stock and then we also learned how to use the Buffett's books Comm intrinsic value calculator I hope that this lesson really helped you out and if you have any questions at all make sure you sign up for the Buffett's books forum and ask your questions there see you guys in the next lesson

Channel: Preston Pysh

Views: 871,256

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Keywords: warren buffett, how to value a company, intrinsic value calculator, future value calculator, stock valuation, stock value, Warren Buffett Intrinsic Value

Id: S1wbCieoHs4

Length: 36min 15sec (2175 seconds)

Published: Sat May 19 2012