Random Thought of Intrinsic Value

Intrinsic Value
That is no standard way to find company intrinsic value. Some use DCF, DDM to estimate future growing and some is use assest value and earning power to find out intrinsic value.
Seem it reason why market price keep up and down.

To me I also try figure my own guide line to find intrinsic value.


Stable Earning
One company no need surge profit. If have then is bonus but more prefer earning is keep growing, slowly grow is fine.
First need study the company's business model and find out business moats.
Need understand how many come in.

After know stable earning then PE can be more trustable.

Future earning - 
No one will know future and it not easy to estimate exact value.
What can do is foresee the TREND of business.


Cash > debt (Cash Cow)
Company can give stable div although not earning not enough cover.
Not worry bankrupt because cash flow enough pay debt.

If this criteria be choose, need to monitor cash level.


Dividend
Dividend does not be reason to increase intrinsic value.
This because company need capable generate enough cash flow to pay dividend. Hence without profit then no dividend, if company pay dividend with not profit support will not stable or sustainable.

However company pay dividend can let me feel safe. First thing is revenue or profit what i see in report can more or less consider correct figure. Second is when market price drop, the dividend can increase confident.


Debt Level
Not all company have lot of cash, especially growing company always reinvest earning into business.
Low debt to me is more safe and it have room to borrow more to expandable when company see chance.

This criteria not suit be main reason to buy in company. It just can tell u the company have healty debt ratio but be noted need pair with earning. Let say the company have low debt but it earning keep droping mean it posible can repay debt.



NAV
It can help u determine whether u buy company in discounted price.

If this criteria be choose, need check against company earning value. Although buy cheaper but the thing you buy not generate enough value still not worth at all.




Above criteria mostly surround with one criteria that is company's earning. One company no earning make no value at all. Hence i should put more effort study company's business and will company revenue sustainable.