How does anyone determine the value of a stock? Is everyone just looking at Comparables? And setting a base line?
Comparables is a good starting point. Then you'd usually work on applying a premium/discount by comparing performance on your p&l, balance sheet and cash flow line items. And then management and governance. Atleast that's how I've gone about it.
Value is an eye of the beholder thing.
There are different valuation models to arrive at the intrinsic value. DCF is one way. You could deep dive on this by taking the valuation course by Prof. Damodaran on YouTube.
I build a Python model to do that. But most investors don't use DCF and just go with their gut which puzzles me 🤣
I mean if I give you revenue data, Adjusted EBITDA , debt, management detail, industry trend, profit margin, discounted cash flow, expansion opportunities, macro economics data ; will you be able to gauge market capitalization of that pa...
Which stocks according to you are undervalued and why(Ind and US stocks)
For me - Meta, Weibo and alibaba are significantly undervalued.(All US listed)
Nestle , Kotak Bank
