Part 8/13:
Instead, investors should focus on quantified first principles—what will happen in the future, not what has happened in the past. Building detailed, forward-looking models is the only way to understand the true value of a company.
The Dynamic Nature of Markets and Valuation Discrepancies
The speaker illustrates how a discounted cash flow model reveals disparities between market price and intrinsic value. For Tesla, the model shows that, as of August 2025, the stock is undervalued by about 50%, creating significant upside potential.