Introduction
It was my favorite store. I ended up spending too much on clothings. I spent one time to purchase five coats from US ROSS store in birmingham city cross border back from 2010 to 2015. I have to stop and start to look into ROSS as a stock, what is intrinsic value, when to get into to make money back from expenses.
Intrinsic value
I have to push myself to read the article, understand the formula how to calculate intrinsic value. I have to figure out why ROSS is super performance stock last 20 years.
Here is the article.
How I understand the intrinsic value?
I just read the article quickly, I actually have no idea how to understand the detail calculation. There are two steps. Get all the terms in the article first, make sure that I understand each term; next step is to put them in the context of ROSS stock.
The order of showing in the article:
future cash flows
today's value
discounting
the discounted cash flows (DCF) model
the basic for discounted cash flow - simply wall St analysis model
2-stage growth model
higher growth rate
perpetual stable growth rate
next five years of cash flows
the consensus of the analysts
5-year cash flow forecast
Gordon growth formula
terminal value
present value of terminal value
intrinsic value based on future cash flows
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