🔑 Join this channel to get access to perks & support my work: kzitem.info/rock/Akyj2N9kd0HtKhCrejsYWQjoin 🎓 Tutor With Me: 1-On-1 Video Call Sessions Available ► Join me for personalized finance tutoring tailored to your goals: ryanoconnellfinance.com/finance-tutoring/
@DiyorbekOdiljonov-u9h
11 ай бұрын
Cheers mate. Explaining it better then my lecturers.
@RyanOConnellCFA
11 ай бұрын
Haha I appreciate it!
@vyshnaviraja55
2 ай бұрын
this is the best explanation ive received. thanks from INDIA.
@RyanOConnellCFA
2 ай бұрын
Thank you from the US!
@AshishKumar-if9yt
11 ай бұрын
crisp and concise. Thanks
@RyanOConnellCFA
11 ай бұрын
Glad it was helpful!
@betastrand3333
11 ай бұрын
TY! this was wayyy clearer than how my professor tried to explain it
@RyanOConnellCFA
11 ай бұрын
Haha I appreciate the feedback!
@arp312
5 ай бұрын
Thank you sir for such wonderful video and explanation.
@RyanOConnellCFA
2 ай бұрын
It is my pleasure!
@abdullahbinsohail7628
3 ай бұрын
Great explanation. You are a life saver.
@RyanOConnellCFA
2 ай бұрын
My pleasure! Thanks for the feedback
@nealshah9575
3 ай бұрын
Thank you Teacher
@RyanOConnellCFA
3 ай бұрын
You are welcome Neal
@dreamthread
Жыл бұрын
when using the Gordon Growth Model, what if g > r?
@RyanOConnellCFA
Жыл бұрын
Good question! In the Gordon Growth Model, if the growth rate (g) is greater than the required return (r), the model will not hold, as it will predict a negative stock price, which is not realistic. This scenario typically suggests an overvaluation, unrealistic growth expectations, or too low of a required return.
@lifelessonsfromelsie7994
4 ай бұрын
Thank you 🙏
@RyanOConnellCFA
4 ай бұрын
My pleasure!
@annanielsen165
10 ай бұрын
Why do we add the $100 at year 4? Is it because we expect to sell the stock again after those 4 years?
@RyanOConnellCFA
10 ай бұрын
Correct! The $100 is the cashflow that we expect to receive from selling the stock 4 years from now. We expect the stock price to be $100 and we will sell the stock at that time
@agastyamishra3619
Ай бұрын
I was also looking for the answer for the same question😅😅
@JoseHernandez-ke7rr
Жыл бұрын
Super clear explanation thank u!
@RyanOConnellCFA
11 ай бұрын
Glad it was helpful!
@funnyperson4016
3 ай бұрын
Buffett views retained earnings as the same or better than a dividend (no taxes for reinvested earnings), and has an equity bond theory that that accumulated value of “owner earnings” belongs to the investor…. by discounting the sum of all future owner earnings back to today in a similar manner, you can value a stock that doesn’t pay a dividend. Some people make the mistake of thinking equity bond is the initial 1/PE or E/P yield, but that isn’t how Buffett looks at it. I don’t know how bonds work or how Buffett values a bond, and I think Buffett is starting with that initial framework to build his equity bond theory but he has mentioned coupon rates and Mary Buffett has a few different books where she explains it a bit.
@alexsutherland1175
3 ай бұрын
Isn't Dsub1 the current dividend multiplied by (1+div growth rate)? D1 should be the NEXT div to pay. In short, it should have been $8 * 1.01 = $8.08. The final formula would have been the $8.08/ (.08-.01). The intrinsic value using that formula would have been $115.43.
@GraniteInTheFace
Күн бұрын
This is normally correct but I imagine for the sake of simplicity he slapped it as div1 but yeah div0*1.08=div1
@valeriocapano6222
Жыл бұрын
Thanks so much for the explanation
@RyanOConnellCFA
Жыл бұрын
You're welcome!
@devinhewitt1206
Ай бұрын
I think the PV is $103.07 not 103.47. Maybe I’m wrong?
@levibaptista7900
9 ай бұрын
Thank you
@RyanOConnellCFA
9 ай бұрын
My pleasure!
@avikstar6067
5 ай бұрын
great , but how do you use this information , this model basically tells you if the company is profiting or not . Is that its sole purpose?
@BrandonAckerman-j5s
5 ай бұрын
It tells you if the company is correctly valued. If the Intrinsic value is higher than its current stock price, then the stock is undervalued and is selling for less than its actually worth so you should buy more of it.
@husky9007
11 ай бұрын
You should do a problem where there is a period of high growth/low growth and constant growth thereafter. Kind of ties the Gordon model with a typical problem
@RyanOConnellCFA
11 ай бұрын
Good idea, I can look into this topic in the future
@cruz5327
6 ай бұрын
Liked this a lot was easy to follow. Was trying this out on Hershey stock to see if its a buy using Gordon Growth since dividends have increased the past 15 years but end up with negative number? Dividend CAGR 20 y is .0952 & amount is 4.46. 4.46/(.08 - .0952) = -293.42 ?😂 Either Im doing it wrong or Hersheys is going under asap hahah
@Hasnainkhan-xk8rz
5 ай бұрын
can you explain why in gordon model we minus growth rate from the rate of return ???
@stankoone9666
3 ай бұрын
Because R is risk associated with a stock and g is growth rate associated with the stock. So you minus the risk from the growth rate which is positive to a stock to obtain less risk since potential growth reduces overrall risk in a firm. Hope it helps. Thats the best way i can explain
@Furry_lil_goblin
Жыл бұрын
How did you get 103.47? 7.41+8.57+4.76+82.32 = 103.06
@RyanOConnellCFA
11 ай бұрын
Good catch, that is just a summing error on my part. The rest of the logic in the video is right but I should have written 103.06
@Gaurav_Shrivastav
Жыл бұрын
Please make video on how to start preparation for CFA LEVEL 1 for 2024 and also on "Will A.I overtake the CFA's jobs in future?"
@RyanOConnellCFA
Жыл бұрын
Those are 2 very good and broadly appealing video topics that I will look into
@Gaurav_Shrivastav
Жыл бұрын
@@RyanOConnellCFA Thank you
@RyanOConnellCFA
Жыл бұрын
@@Gaurav_Shrivastav Thank you for the suggestions!
@RedTiGeRJJ
Жыл бұрын
Great Video, thanks man
@RyanOConnellCFA
Жыл бұрын
Glad you liked it! My pleasure
@Evan-4579
6 ай бұрын
I have one question. Why is D1 = $8? Why is it not D1= 8(1+0.01)? Great video❤️
@rennyworld1242
13 күн бұрын
D1 has already been grown. Remember D1=Do(1+g)
@mohammadali-rp5ds
7 ай бұрын
Please make video on multistage growth model
@hrcrewgaming
10 ай бұрын
What if D2,D3, etc. is not given?
@RyanOConnellCFA
10 ай бұрын
It depends on the way the question was phrased in that case. They may say, "the dividend will grow by 3% each of the next 2 years" which would mean you need to calculate D2 and D3 yourself
@manishakaushik112
7 ай бұрын
Best explanation ❤
@Hiruniperera6753
Жыл бұрын
thnks
@RyanOConnellCFA
Жыл бұрын
My pleasure!
@jazmin98XD
Жыл бұрын
yooo ty
@RyanOConnellCFA
Жыл бұрын
My pleasure!
@snehabansal4205
Жыл бұрын
😊
@nessagotdrip
8 ай бұрын
thanks i love you
@RyanOConnellCFA
8 ай бұрын
You're welcome!
@hkim9151
5 ай бұрын
But expected dividend payouts in forever in 100 years or more and payout every 3 months (not each year,) 😂
Пікірлер: 62