In this short video, we'll explain how we calculate a fair value estimate for a stock using different valuation methods, inputs and assumptions, and how you can use this figure to make a better-informed decision.

Intrinsic valuation focuses on the company itself, and compares the current price to an estimate of fair value. Theoretically, the value of a company is the present value of all the future cash flows it can provide to shareholders. To get this value, the Discounted Cash Flow (DCF) method is used. This method uses inputs and assumptions about the underlying business to project the cash flows generated each year in the future, and then discounts each year back to today’s present value and adds them together. Depending on the company we use a slightly different DCF method.

You can review our valuation analysis on any stock in your portfolio on the Simply Wall St platform: [ Ссылка ]

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