How do you find a company's range of intrinsic values? Sure, there's many ways and a full breakdown could be its own podcast. You're basically figuring out how much cash is this company going to generate over its lifetime and how much is that worth to me as an investor today? Then when you're looking for companies, do you have any valuation guardrails? For example, I don't buy companies above a 10x price-to-sales ratio,. Those types of relative multiples are useful but they're really just a snapshot in time.
Motley Fool Senior Analyst Rich Greifner joins Ricky Mulvey for a primer on value investing, or trying to find out how much a company is worth, and buying them for less than that amount. They discuss:
- If there’s even a difference between growth and value investing. - Signs that a business is mispriced. - How investors can find mispriced businesses. - Why companies trade below their accounting-based worth. - If there even needs to be a distinction between growth and value investing. - Unpopular companies that may be worth your attention.
Companies discussed: META, WCC
Host: Ricky Mulvey Guest:Rich Greifner Engineer: Rick Engdahl
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