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Intrinsic value of Stocks

Hi, First of all Thanks for your great app and great service, it indeed provides a lot of value. Secondly I wanted to know as to how to do you calculate the intrinsic value of the stock for eg is it by cash flow discounting or the valuation is based on EPS. Secondly do you also have a margin of safety when you calculate the intrinsic value. Will appreciate your reply on the same as your answer will hopefully save a lot of time of mine. Thanks

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This is an important question. Hope to receive response from tickertape

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Also where do I find the intrinsic value? I am only able to see if current market price is less/more than intrinsic value. Not able to find as to what is the the intrinsic value. Is there a screener to filter all stocks where current market price < intrinsic value

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Hi,


The intrinsic value of a stock can be calculated differently by different users, according to their investment needs and the valuation. This is the reason why Tickertape does not show Intrinsic value as such, we display a percentile ranking of the scrip in comparison with other scrips.

As for the calculation part, we use cash flow discounting for calculating the intrinsic value.


Hope this was helpful.

Please write to us at support@tickertape.in if you have anything else to raise.  


Regards


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Hi Mr Parvez , Thanks for your reply but I only got half answer after 12 days. You use cash flow discounting for showing the intrinsic value of a stock which is great but do you keep a margin of safety while calculating the intrinsic value, if yes how much is the margin of safety?
Hi Parvez, Thanks for the info. Can you please elaborate “ we display a percentile ranking of the scrip in comparison with other scrips”
Also, what formula do you consider to estimate growth rate, while calculating DCF

Hi,


Intrinsic value is a proprietary value that we calculate. It is broadly based on the dividend discount model but unfortunately we can't reveal the exact algorithm. The algorithm also has logics embedded to remove biases. We keep a buffer while mentioning the comparison to the current price if that's what you mean by "margin of safety". The buffer % might vary from stock to stock since different stocks have different volatility"


Hope this clears the questions.


Regards

Thanks for your reply Parvez, that surely helps. But as a loyal supporter of your honest endeavor I would like to suggest that you will greatly improve the value you provide all of us here through this website by mentioning the exact fair value of a stock according to you and also as to how much it is undervalued or over valued from the current price in terms of percentage. This by the way is already done by US based screeners, would love that kind of graph to be here which will provide immense value

Hi,


Thanks for the detailed feedback.

We have taken a note of this and have added this to our feature requests list, where it might be considered for future updates.

Tickertape is still a young platform - we are working constantly behind the scenes to ensure that users get the best features on Tickertape. We truly are thankful for insightful and involved users such as yourself and value your feedback immensely.


Stay tuned!


Regards


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