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1. What is Intrinsic Value?

Intrinsic value is a financial term used to determine the true value of an asset, based on its fundamental characteristics rather than its current market price. It involves analyzing financial metrics and future cash flows to assess what a company or asset is genuinely worth. This concept is central to value investing, where the goal is to identify and invest in assets priced below their intrinsic value.

2. What is IntrinsicValue.ai

IntrinsicValue.ai is a user-friendly application that enables Value Investors to instantly determine the Intrinsic Value of any stock with a single click.

The app also features a suite of software tools aimed at aiding investors in selecting stocks and making informed decisions, relying on solid facts rather than opinions or recommendations.

Emphasizing facts over advice, IntrinsicValue.ai strictly provides data-driven insights based on quantitative analysis and sophisticated mathematical models, steering clear of offering any stock recommendations or advisory services.

3. Discounted Cash Flow (DCF) Analysis

This method involves estimating the future cash flows generated by the asset and then discounting them back to present value using a discount rate. The idea is that the intrinsic value of an investment is the present value of its expected future cash flows.

It's important to note that intrinsic value calculations involve making assumptions about future events, and different investors may use different models or inputs.

Additionally, market sentiment and external factors can influence the market price, leading it to deviate from the calculated intrinsic value. As such, intrinsic value serves as a theoretical benchmark rather than a guarantee of an asset's future market price.

4. Is the Dashboard data live?

The data displayed on the dashboard is not real-time and has a 15-minute delay.

5. What is the meaning of FTSM Watchlist?

The FTSM Watchlist, one of our tools, encompasses the Fundamental, Technical, Sentimental, and Mutual Fund Ranking system.

This ranking approach offers an all-encompassing assessment of stocks, integrating perspectives from fundamental analysis, technical indicators, sentiment analysis, and mutual fund investments.

6. What is Fundamental Rank & how is it calculated

The Fundamental Rank is determined by assessing the Margin of Safety, which represents the percentage difference between the Current Market Price and the Intrinsic Value of a stock. Stocks with the highest Margin of Safety are assigned a rank of 1, while those with lower Margins of Safety, indicating potential overvaluation, are ranked lower.

7. What is Technical Rank & how is it calculated?

The Technical Rank is computed by evaluating Positive, Neutral, or Negative indicators related to the stock's price and momentum over a specified time period. Users can tailor the specific technical indicators in the app's My Strategies section. Stocks exhibiting more Positive indicators and fewer Negative indicators receive higher rankings.

8. What is Sentimental Rank & how is it calculated?

The Sentimental Rank is derived from the analysis of Positive, Neutral, or Negative sentiment indicators gleaned from various news headlines related to a specific stock. Stocks with more Positive indicators and fewer Negative indicators are positioned at the top of the ranking.

9. What is Mutual Fund Rank & how is it calculated?

The Mutual Fund Rank is established by considering the net investment value contributed by all Indian mutual fund companies in a particular stock. The rank is influenced by the percentage of net investment in relation to the market capitalization of the company; a higher percentage results in a higher rank.

10. What is EPS Growth rate?

The EPS (Earnings Per Share) Growth Rate is a measure of the rate at which a company's earnings per share increases over a specified period. It is a key indicator of a company's profitability and financial health, used by investors to gauge its potential for future growth and performance. This growth rate is often calculated annually, but can also be examined quarterly or over different time frames to assess short-term or long-term trends in earnings.

11. What is Confidence Rate?

In value investing, the Confidence Rate refers to an investor's degree of certainty in their assumptions and predictions about a company's future performance. It's a subjective measure used to gauge how confident an investor feels about their analysis of a stock, especially when determining its intrinsic value and making investment decisions. This rate can influence the discount rate or margin of safety applied in valuation models.

12. What is Analysts’ Estimate?

Analysts' Estimate is a consensus forecast made by financial experts on key financial metrics like earnings per share (EPS) and revenue for a company's future performance. These estimates, derived from thorough research and analysis, serve as a benchmark for investors to assess a company's potential and can significantly impact market sentiment and stock prices. These estimates have been sourced from the Yahoo Finance platform.

13. What is the Margin of Safety?

The Margin of Safety is a principle in value investing that involves purchasing securities when their market price is significantly below their intrinsic value. This approach provides a cushion against errors in estimation or unforeseen market downturns, thereby reducing the potential risk of loss for the investor.

14. What is Discount Rate?

The Discount Rate is a critical rate used in financial analysis to calculate the present value of future cash flows, reflecting the expected rate of return on an investment. It accounts for the time value of money, recognizing that current funds are more valuable than the same amount in the future due to their earning potential. In evaluating investments, a higher discount rate is often applied to riskier ventures to account for the greater uncertainty in receiving future returns.

15. What does Positive, Neutral or Negative indicator mean?

In stock market charts, Positive, Neutral, or Negative indicators are technical analysis tools used to interpret market trends and investor sentiment towards a particular stock.
A Positive indicator suggests a potential upward trend or bullish sentiment, indicating a good time to buy.
A Neutral indicator implies stability or uncertainty in the stock's direction, suggesting a hold position.
Conversely, a Negative indicator signals a potential downward trend or bearish sentiment, often interpreted as a sell signal.
These indicators help investors make informed decisions based on the stock's projected performance.
These indicators are derived from analyzing stock price and trading volume (momentum) in technical analysis, and through evaluating market sentiment in sentiment analysis.

16. How does My Strategies work?

"My Strategies'' allows users to tailor their technical trading approaches. It offers options to choose chart time frames from 1 day, 1 week, or 1 month, and to select from over 25 oscillators and moving average indicators. These indicators and their values are computed in real-time.

17. Where are you getting data from?

IntrinsicValue.ai harnesses a diverse array of both structured and unstructured data sources available on the internet. Additionally, it employs a range of quantitative models, both widely recognized and less conventional, to compute its indicators.

18. Why should you use My Portfolio?

My Portfolio enables you to monitor your trades and discover your Internal Rate of Return (IRR). Unlike many portfolio software that concentrate on absolute returns, this feature stands out by offering the capability to calculate IRRs.

19. How does the Leaderboard work?

The Leaderboard on IntrinsicValue.ai is a playful, game-like element that lets users add stocks to their FTSM Watchlist based on their top 10 performance in weekly, monthly, and annual returns. While this feature adds an entertaining dimension to the platform, it should be viewed solely for fun and not as a source of stock recommendations or advice.

20. How do I suggest improvements to IntrinsicValue.ai

You have the option to complete the Feedback form available on the IntrinsicValue.ai website & app.