Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to ha...
Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model . How far off is Broadcom Inc. ( NASDAQ:AVGO ) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example! The US$411 analyst price target for AVGO is 35% more than our estimate of fair value Story Continues We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate ...
We came across a bullish thesis on Tesla, Inc. on Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls’ thesis on TSLA. Tesla, Inc.'s share was trading at $430.14 as of December 1st. TSLA’s trailing and forward P/E were 296.67 and 192.31 respectively according to Yahoo Finance. david-von-diemar-ZBWn5DvO0hg-unsplash Tesla (TSLA) is increasingly positioning itse...
We came across a bullish thesis on Tesla, Inc. on Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls’ thesis on TSLA. Tesla, Inc.'s share was trading at $430.14 as of December 1st. TSLA’s trailing and forward P/E were 296.67 and 192.31 respectively according to Yahoo Finance. david-von-diemar-ZBWn5DvO0hg-unsplash Tesla (TSLA) is increasingly positioning itself at the forefront of AI-driven autonomy and robotics, with its Full Self-Driving (FSD) technology directly informing the development of Optimus, a humanoid robot platform that Elon Musk has called “the largest product opportunity in history.” The company’s Master Plan Part 4, unveiled in September 2025, underscores this shift toward AI and robotics, with Musk projecting that robots could ultimately represent approximately 80% of Tesla’s long-term value. Recent reports indicate a $685 million order from Sanhua for linear actuators, suggesting production capacity for roughly 180,000 robots. Tesla aims to scale output to several thousand units in 2025, 50,000–100,000 in 2026, and between 500,000 and 1,000,000 annually by the end of the decade. The expected unit cost of $20,000–$30,000 aligns with a global humanoid market projected at $218 billion by 2030. Optimus 3 has been described as an “exceptional design,” featuring enhanced thermal, battery, and payload capabilities, while FSD neural networks transfer directly to humanoid control, with recent software updates expanding capabilities such as robotaxi-style drop-offs and global FSD availability. Tesla’s long-term vision is ambitious, envisioning a $25 trillion company by 2050, where both energy and labor approach minimal marginal cost. Execution risks remain significant, encompassing hardware reliability, safety, and regulatory challenges. However, if Tesla can establish a repeatable and cost-effective robot supply chain, the company could diversify its income statement beyond vehicles, unlocking a high-margin AI-driven b...
Earnings Results to be released on December 10, 2025, After the Close of the Market AUSTIN, Texas, Dec. 2, 2025 /PRNewswire/ -- Oracle Corporation today announced that its second quarter fiscal year 2026 results will be released on Wednesday, December 10th, after the close of the market. Oracle will host a conference call and live webcast at 4:00 p.m. Central Time to discuss the financial results....
Earnings Results to be released on December 10, 2025, After the Close of the Market AUSTIN, Texas, Dec. 2, 2025 /PRNewswire/ -- Oracle Corporation today announced that its second quarter fiscal year 2026 results will be released on Wednesday, December 10th, after the close of the market. Oracle will host a conference call and live webcast at 4:00 p.m. Central Time to discuss the financial results. The live webcast will be available on the Oracle Investor Relations website at www.oracle.com/investor. About Oracle Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com. Trademarks Oracle, Java, MySQL and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing. View original content to download multimedia:https://www.prnewswire.com/news-releases/oracle-sets-the-date-for-its-second-quarter-fiscal-year-2026-earnings-announcement-302630171.html SOURCE Oracle