What We Think Of Lockheed's Valuation [View article]
Thanks kolpin. If we're doing things correctly, we expect the firm's stock price to converge to our intrinsic value over time. Thanks for pointing this out to new readers.
J.C. Penney Brings Back Discounting; Was The Fourth Quarter Horrible? [View article]
Hi Yair,
Thank you for your comment. We use several metrics to evaluate a company, including same-store sales growth rates and gross margins. Kohl's same-store sales have been lackluster over the past few years, and the company recently announced that gross margins for its fourth quarter will be below expectations.
Regardless Of Price, Apple's Intrinsic Value Is Still On Its Way To $1,000 [View article]
Hi JUDOKA,
We are assessing the long-term intrinsic value of Apple. The market assigns the price to the stock. We attempt to find out what the company is really worth (fair value), as eventually we think the market will pay a fair price for it.
Regardless Of Price, Apple's Intrinsic Value Is Still On Its Way To $1,000 [View article]
Hi Christopher,
Valuation is a range of probable values, not a precise number. We assess Apple by evaluating the most likely outcome and assigning a margin of safety to that fair value estimate. Even under pessimistic gross margin assumptions (lower than our base-line forecast), the company is trading at a discount.
Regardless Of Price, Apple's Intrinsic Value Is Still On Its Way To $1,000 [View article]
Misho ILIEV,
The capital structure (net cash position) is vital to assessing the intrinsic value of a company. For example, all else equal, a company with $137 billion in net cash on the balance sheet should trade at a higher multiple than a company with no net cash on the balance sheet, assuming all else equal (including future growth, risk, cash flow, etc). The Street is very confused in this respect and may lead investors to believe that a company's capital structure does not matter. Capital structure and cash matters very much in valuation.
Regardless Of Price, Apple's Intrinsic Value Is Still On Its Way To $1,000 [View article]
The short answer is that value is the starting point of our process. The explanation of our Valuentum Buying Index rating can be found at the following link:
Regardless Of Price, Apple's Intrinsic Value Is Still On Its Way To $1,000 [View article]
Hi LGV,
Thanks for your thoughts. The primary use of the law of large numbers is in the media to somehow use this as an explaination for a price decline. However, it is very important to note that growth is but one factor behind assigning a multiple to a company. The expectation of future free cash flows are the primary determinant of a company's multiple. Pasted below is an explanation of what the P/E really means, and why the law of large numbers makes little sense in this context.
Regardless Of Price, Apple's Intrinsic Value Is Still On Its Way To $1,000 [View article]
Just remember, price is what one pays for a stock. Value is what the company is worth based on its discounted future free cash flow stream. They are very, very different concepts.
Regardless Of Price, Apple's Intrinsic Value Is Still On Its Way To $1,000 [View article]
The law of large numbers is very interesting as it relates to cash flow dynamics. Large cash flow = large intrinsic value. A company can be drastically undervalued even if cash flows are flat and/or declining. The law of large numbers is hardly a law.
This paper will help in understanding what a P/E ratio truly means:
MasterCard Posts Terrific Fourth Quarter Results [View article]
http://on.fb.me/TSw4F6
Kind regards,
The Valuentum Team
What We Think Of Lockheed's Valuation [View article]
Kind regards,
The Valuentum Team
Deckers Is Showing Relative Strength, But Is There More Upside? [View article]
Per your question, pasted below is a link to our valuation process:
http://bit.ly/xf6xWg
Kind regards,
The Valuentum Team
19 Things I Like About Dividends [View article]
Kind regards,
The Valuentum Team
J.C. Penney Brings Back Discounting; Was The Fourth Quarter Horrible? [View article]
Thank you for your comment. We use several metrics to evaluate a company, including same-store sales growth rates and gross margins. Kohl's same-store sales have been lackluster over the past few years, and the company recently announced that gross margins for its fourth quarter will be below expectations.
Kind regards,
The Valuentum Team
Regardless Of Price, Apple's Intrinsic Value Is Still On Its Way To $1,000 [View article]
We are assessing the long-term intrinsic value of Apple. The market assigns the price to the stock. We attempt to find out what the company is really worth (fair value), as eventually we think the market will pay a fair price for it.
Hope this clarifies what we do.
Kind regards,
The Valuentum Team
Regardless Of Price, Apple's Intrinsic Value Is Still On Its Way To $1,000 [View article]
Valuation is a range of probable values, not a precise number. We assess Apple by evaluating the most likely outcome and assigning a margin of safety to that fair value estimate. Even under pessimistic gross margin assumptions (lower than our base-line forecast), the company is trading at a discount.
Kind regards,
The Valuentum Team
Regardless Of Price, Apple's Intrinsic Value Is Still On Its Way To $1,000 [View article]
The capital structure (net cash position) is vital to assessing the intrinsic value of a company. For example, all else equal, a company with $137 billion in net cash on the balance sheet should trade at a higher multiple than a company with no net cash on the balance sheet, assuming all else equal (including future growth, risk, cash flow, etc). The Street is very confused in this respect and may lead investors to believe that a company's capital structure does not matter. Capital structure and cash matters very much in valuation.
Kind regards,
The Valuentum Team
Regardless Of Price, Apple's Intrinsic Value Is Still On Its Way To $1,000 [View article]
http://bit.ly/viu9MH
Kind regards,
The Valuentum Team
Regardless Of Price, Apple's Intrinsic Value Is Still On Its Way To $1,000 [View article]
Thanks for your thoughts. The primary use of the law of large numbers is in the media to somehow use this as an explaination for a price decline. However, it is very important to note that growth is but one factor behind assigning a multiple to a company. The expectation of future free cash flows are the primary determinant of a company's multiple. Pasted below is an explanation of what the P/E really means, and why the law of large numbers makes little sense in this context.
http://bit.ly/FPiD05
If you cannot download it or have any questions about it, please contact us at info@valuentum.com.
Hope you are doing well.
Kind regards,
The Valuentum Team
Regardless Of Price, Apple's Intrinsic Value Is Still On Its Way To $1,000 [View article]
Regardless Of Price, Apple's Intrinsic Value Is Still On Its Way To $1,000 [View article]
http://bit.ly/MtrQwH
Thank you for bringing this up.
Kind regards,
The Valuentum Team
Regardless Of Price, Apple's Intrinsic Value Is Still On Its Way To $1,000 [View article]
This paper will help in understanding what a P/E ratio truly means:
http://bit.ly/FPiD05
If you can't download it, please contact us at info@valuentum.com, and we can send you the pdf.
Kind regards,
The Valuentum Team
http://www.valuentum.com
Waiting For A More Attractive Valuation At Bristol-Myers [View article]
Thank you for reading our article. We only make available our fair value estimates to members of our website.
We hope you may give our research a try.
Kind regards,
The Valuentum Team
AT&T Sells Just A Couple Of iPhones (8.6 Million Of Them) [View article]
Kind regards,
The Valuentum Team