Fair Value Calculation

General
1

Dear Experts,

I hope this message finds you well. I would appreciate your guidance on the best methods to accurately calculate the fair value of a stock. Could anyone kindly share their insights, recommended approaches, or tools that would help in this process?

Thank you in advance for your time and expertise.

2

In the past tried to find the calculation but it was too complicated for me as it needed fcf - future cash flow and discounted rate etc

What i do is just search in google

Intrinsinc value of axis bank

The results give me a value
The sites are valueinvesting, alpha spread, guru focus etc

At least it gives some indicative value

3

I came across this post, u can give it a read.

If a new company went for IPO, as an investor, how can I determine that I am investing in a good company, since there is no past data available at the exchanges? - #2 by Karthik.

Most valuation models involve discretionary assumptions regarding a company’s future growth, profit margins, and discount rates etc.

I find the Reverse-DCF model to be a good alternative to this.

Here, instead of predicting the future cash flows, Growth rate etc, we get to determine on what rate should the profits/sales/cash flows of a company needs to grow, to justify it’s current price.

So it can help in determining if a stock is overvalued/undervalued and if the future growth rate used in this assumption is sustainable or attainable.

@Karthik do we have any article on Reverse-DCF in varsity. Also i would love if we could add a search button in varsity for quick access.

4

Fully agree. In fact thecsesrch button link should be on this site so that i can search varsity from here