Feel Free Read Simple Intrinsic Value Calculation for the Everyday Value Investor RTF
To grow your money in the stock market, you neither have to have a PhD in Finance nor outsmart the gurus of investing. Instead, what you need is to have some kind of a compass that allows you to identify if a stock is under- or overvalued. Then, you can buy when the price of the stock is lower than its intrinsic (or fair) value and sell when it is higher. This proven methodology of money-making is called value investing.In this book, I attempt to present the widely-used valuation methods with example stock valuations and enrich the methods with a guideline on what to look for. The valuation methods are based on the fundamentals of companies and are covered in a way that is relevant for the everyday value investor. The everyday value investor includes every one of us whose expertise does not necessarily lie in the fields of investing and stock markets, but who wants to make informed decisions with their hard-earned money.Do not take this book as the ultimate guide to value investing as it is not that. Instead, I intend merely to make the subject matter more digestible and make it easier for us investors to acquire what I see as the right approach to investing: a rational value investing approach with a long-term mindset.
