Evaluate the enterprise value
and invest in stocks of future
growth enterprises.
Regarding
enterprise value evaluation, each enterprise value evaluator has a different
evaluation method. Therefore, I would like to introduce it briefly rather than
technically. If you want to know professionally, please take the enterprise
value evaluator course.
I
also have questions about enterprise value evaluation, so I took and passed the
enterprise value evaluator training. And I've been through refresher training.
The following is a simple explanation of how I evaluate enterprise value for
stocks around the world.
First,
the asset value is calculated by dividing the net assets by the total number of
outstanding shares. Enter operating profit based on sales. After calculating
the profit value by including the capital return rate, the intrinsic value is
calculated by calculating the asset value and the profit value in a certain
proportion.
In
addition, in consideration of the company's growth potential, I enter the
growth multiple based on my personal judgment. This will give you the target
price of the stock you want to buy.
What
is important here is the future growth potential of the company. Personally,
don't be overconfident in evaluating enterprise value. The reason is the fact
that the evaluation of enterprise value based on the data so far is a past
evaluation.
So
will it be the case in the future?
The answer is absolutely not.
Therefore,
it is important to invest in stocks of future-growth companies. A company
growing in the future may experience a temporary plunge or decline, but one day
it will surely raise its purchase price and bring profits.
In
that regard, I am also investing in future growth stocks after evaluating the
enterprise value first. However, sometimes, an investment is made first and
then the enterprise value is evaluated later. Even if the stock is good and the
timing is urgent, this should not be the case. This is the part that must be
corrected.