ZippyDonut
ZippyDonut

Value Vs Price

How does anyone determine the value of a stock? Is everyone just looking at Comparables? And setting a base line?

23mo ago
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JazzyWaffle
JazzyWaffle

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.

FloatingNugget
FloatingNugget
SAP23mo

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.

ZippyDonut
ZippyDonut

I build a Python model to do that. But most investors don't use DCF and just go with their gut which puzzles me 🤣

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