Tag Archives: guides

Determining the Intrinsic Value of a Stock using EPS Growth Capitalization

Determining the Intrinsic Value of a Stock using EPS Growth CapitalizationValue investors are concerned with determining what’s called the intrinsic value of the companies they wish to invest in. This intrinsic value nearly always differs from the actual trading price of the stock, presenting us with opportunities to buy for less than the company is really worth! See my recent article, “What is the difference between price and value?” for more on this topic. Today we’ll look at one of the popular methods of calculating intrinsic value using an estimated EPS growth rate and future PE ratio. This is called the EPS Growth Capitalization method and is detailed below. Continue reading

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Value Investing Workflow: The basic concepts

A workflow is a series of specific tasks or criteria that must be fulfilled in the course of reaching a larger goal. Our goal as value investors is to find, evaluate, purchase, and ultimately sell for a profit, the stock of publicly traded companies. There’s a series of steps required to be successful in this endeavor and the easiest way to approach the problem is by following a step-by-step approach. Following is the basic concept of a value investing workflow. Continue reading

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