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How do I calculate an intrinsic value of a given company?


How do I calculate an intrinsic value of a given company?

There exists no single formula to determine the intrinsic value of a company. Analysts have their own method of determining this, which means there is no set rule on what needs to be included in this analysis.
The analysis does cover two approaches though: Qualitative Analysis and Quantitative Analysis.
Qualitative Analysis: this is the most subjective of the two, as you would be focusing your attention on management experience, the industry/sector cycle the company is operating in, labor relations, economic outlook and its relative impact on the company, etc. This analysis focuses on the quality of the company.
Quantitative Analysis: this focuses on the numbers that the company lists within its income statement, balance sheet and cash flow statement. The purpose here is to determine the overall health and vitality of the company, and use this information to project an idea of the company's strength into the relative future.

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