Cherry Picking The Diamonds From The Stock Market

Which website can I get a free "intrinsic Value" of a stock to find undervalued stocks?

Quicken used to have it but they charge now. I need a website that is free. Thanx

"intrinsic value" of a stock is very difficult to arrive at, maybe impossible.

By definition it is: The value of a company or an asset based on an underlying perception of the value.

The key word is "perception".

Your perception may not correspond to others perceptions.

Some people believe in the efficient market hypothesis. That is that the intrinsic value of a stock is currently what it is selling for.

I personally do not hold with that concept or I would not be buying securities hoping to make a buck now and then.

Let's discuss some of the tools available to you to help you discover undervalued stocks.

There is the PE ratio and the expected growth rate, the dividend, the market captialization, the Debt/equity ratio and the book value. All of these can be used.

A common tool today is to look at the PEG ratio which is the PE divided by the expected growth rate. The lower the PEG the better the value. The big problem is determining the expected growth rate. Most estimates are overly optomistic. But it is a good place to begin.

Price divided by book value has often been used. The lower the ratio the better value in theory. But most book values are overly inflated with worthless inventories, fixed assets, and good will. I do not hold much credence in book value.

Debt equity ratio can be a very important determination of underlying value. The more debt a compay has, the less value it has because the more risk it carries.

The larger a company is the more intrinsic value it should have due to its financial muscle. There is value in size.

Thus ends my discourse on that subject.