Move Beyond Market Price and Find the "Fair Value" Using Institutional Methods.

Is a stock cheap at €50 or expensive at €500? Without valuation, you are simply guessing.

In this course, we pull back the curtain on Intrinsic Value. You will learn the exact 4-step process to calculate what a stock is worth based on its future earnings power. We move beyond simple ratios and dive into the Discounted Cash Flow (DCF) model—the same 'Gold Standard' used by professional analysts and Warren Buffett.

By the end of this journey, you will have a clear 'Buy Price' for every stock on your watchlist, ensuring you always have a Margin of Safety before you hit the buy button.

In the world of investing, Price and Value are two completely different things. As Warren Buffett famously said: "Price is what you pay. Value is what you get."

Most beginner investors make the mistake of looking only at the Price. They see a stock that was €100 last month now trading at €50 and think, "It's 50% off! What a bargain!" However, professional investors look at the Intrinsic Value. If that company's profits have collapsed and its debt has doubled, that €50 stock might actually be worth only €10. In that case, the "cheap" stock is actually expensive.

A Value Trap is a stock that looks cheap based on historical prices or simple ratios but continues to drop because the business is fundamentally broken.

Common signs of a Value Trap:

We never buy a stock just because the price is "low." We only buy when the Market Price is significantly lower than our calculated Intrinsic Value.

Pro-Tip: A stock at €500 can be a "better deal" than a stock at €5 if the €500 company is growing its earnings at 30% per year while the €5 company is losing money.

To find out what a stock is truly worth, we don't look at the flickering red and green lights on a trading screen. Instead, we use a structured 3-Step Blueprint that combines historical data with professional analyst insights.

This blueprint allows us to look 5 years into the future to see where the company is headed.

To get to our "Fair Value" price, we follow this exact sequence:

We start at the top of the income statement. We look at the average growth rate of the company's sales over the last 5 years and compare it to what Professional Analysts are predicting for the next 2 years.

Revenue is great, but profit is what pays the investors. We look at the company’s EPS growth. We want to see if the company is becoming more efficient.

We don't work in a vacuum. We check the Analyst Forecasts from major investment banks. By combining our mathematical growth projections with the broader market's expectations, we can calculate the Intrinsic Value.

The reason we use all three is for safety. If the Revenue is growing but the EPS is falling, the company has a "leaky bucket" problem. If our math says the stock is worth €200 but every analyst on Wall Street says it's worth €50, we stop and ask why before we risk a single Euro.

Next Lesson: We will dive deep into Step 1 and show you exactly where to find the Revenue data for free using TradingView.

In this lesson, we stop looking at what retail investors are saying on social media and start looking at what the "Institutional Pros" (the ones managing billions of Euros) are predicting. These are the analysts at major banks like Goldman Sachs, JP Morgan, and Morgan Stanley.

When you look at a stock's valuation, you shouldn't just look at one price. You need to see the Range of Expectations. In the video below, I show you how to find:

While you can find this data manually on various websites, EquityScan does the heavy lifting for you. Instead of searching for targets one by one, EquityScan:

Data is only half the battle. Analysts can be "stale"—meaning they haven't updated their targets since the last earnings report. This is exactly why our Thursday Members' Meetings are so critical.

During these live sessions, we:

If you only ever learn one formula for valuing a stock, make it this one. The Price-to-Earnings (P/E) Ratio is the most widely used metric on Wall Street because it tells you exactly how much investors are willing to pay for every €1 of a company's profit.

Think of this as a "Time Machine." We aren't looking at what the stock is worth today; we are projecting what it will be worth 12 to 24 months from now.

Calculating the 5-year average P/E manually is tedious. You have to find five years of balance sheets, add them up, and divide.

EquityScan does this in milliseconds. * It automatically pulls the Historical P/E Average.

The P/E ratio is powerful, but it can be "fooled" by one-off events (like a big tax break or a temporary dip in profits).

In our Thursday Members' Meetings, we perform a "P/E Audit." We ask the hard questions:

Sometimes, looking at profits (EPS) doesn't tell the whole story. If a company is spending heavily to expand or recovering from a temporary dip, their "Earnings" might look small, making the P/E ratio look scary. This is where the Price-to-Sales (P/S) Ratio becomes your best friend.

While earnings can be manipulated by accounting tricks, Revenue is much harder to fake. It represents the actual cash coming in from customers.

In the airline industry, profits can swing wildly based on fuel prices. However, Revenue Per Share is much more stable. In the video below, we show you how we use the P/S ratio to find a "floor" for Alaska Airlines. Even when profits were squeezed, the revenue remained strong, allowing us to value the company accurately when others were panicking.

Finding "Revenue Per Share" and calculating 5-year P/S averages across 5,000 stocks is impossible to do by hand.

EquityScan does it for you:

The P/S ratio is a "Growth Lens," but it requires context. A high P/S might be fine for a software company but a disaster for a grocery store.

During our Thursday Members' Meetings, we dive into:

You have looked through three different lenses: Analyst Forecasts, the P/E Ratio, and the P/S Ratio. Now, it’s time to bring those numbers together to find your Intrinsic Value Average. This final number tells you what the stock should be worth. The difference between that number and today's market price is your Upside Potential.

Just because a stock has a "100% Upside" on paper doesn't mean it’s a buy. If the company’s debt is spiraling or its industry is dying, that "upside" might never happen. We use our 3-step blueprint specifically to filter out these traps before you commit your capital.

EquityScan doesn't just do the math; it ranks the market for you.

Calculating the number is the easy part. Having the conviction to click "Buy" when the news headlines are scary—or the discipline to "Pass" when a stock looks cheap—is the hard part. This is the most dangerous stage for a solo investor.

In our Thursday Members' Meetings, we provide the "Valuation Audit":

By now, you know how to calculate a stock's "Fair Value." You might find a stock trading at €10 that your math says is worth €40. A 300% upside! Your first instinct is to buy as much as possible.

Stop. Before you click buy, you must ask: "Is this an opportunity, or is it a Value Trap?" A Value Trap is a stock that looks cheap on paper but continues to drop because the business is fundamentally broken. The market is "pricing in" a disaster that your formulas might not see yet.

To protect your capital, check every "undervalued" stock against these three red flags:

Is the company in an industry that is being disrupted?

A company can have great products, but if it is drowning in debt, the interest payments will eat all the profits.

Beginners often chase "High Dividend Yields." If a stock price drops 50%, the dividend yield doubles. This looks attractive, but it’s often a sign the company is about to cut the dividend to save cash.

EquityScan is built to spot these traps before you do.

The hardest thing to do is walk away from a stock that looks like a "sure thing."

During our Thursday Members' Meetings, we specialize in "Killing the Idea." We take your "undervalued" picks and try to find the flaws.