Part 5/13:
By comparing the calculated intrinsic value with the current market price, an investor can identify opportunities where the stock is undervalued (trading below intrinsic value) or overvalued.
The speaker emphasizes that all other valuation techniques or ratios are inferior or misleading unless they are rooted in actual future cash flow predictions.
Modeling the Future: An Example with Tesla
Using Tesla as a case study, the speaker explains how to build such a valuation model:
Revenue Streams: Identifying the main sources—such as vehicle sales, energy products, and robo-taxis.
Forecasting: Making specific predictions about future unit sales, including humanoid robots and autonomous taxis.