The Value of My Holdings
I still own some individual stocks and am pretty happy with what I have. But what about the “value” of what I own? Are they still undervalued?
Valuation is typically done using a “discounted cash flow” model. We know companies make $X per year, grow at Y%, and we can bring those cash flows back to present-day value. Hopefully, I will own these companies for less than they are worth.
For instance, Telsa (TSLA), which I DO NOT own, is overvalued by this metric. TSLA shows a fair value of $170 and trades at $277. So it’s about 62% overvalued.
| Ticker | Current Price | Fair Value (DCF) | Percent Undervalued |
|---|---|---|---|
| TSE:GWO | C$30.65 | C$91.95 | 66.7% |
| TSE:MFC | C$22.38 | C$67.68 | 66.9% |
| INTC | $31.76 | $188.47 | 83.1% |
| TROW | $119.00 | $196.68 | 39.5% |
| JPM | $114.51 | $195.88 | 41.5% |
| TSE:IGM | C$35.05 | C$81.17 | 56.8% |
I wonder how accurate this will turn out to be.
When the next round of quarterly revenue reports comes out, we’ll see if these companies are still growing or shrinking. If they start losing money. And then the valuation will drop.
