So, how do you calculate the fair value of a stock? Many people call it intrinsic value, I wouldn't call it like that because the real value of a stock is defined very precisely and very easily, but we are going to use the real value or intrinsic value of a stock, to calculate the fair value: the price at which is reasonable to buy the stock. First of all we have to understand what is the most important thing for a company, and that's earnings or net income; the purpose of a company is to make money, therefore they need to have net income. When a company has net income at the end of the year/quarter they can decide to do two things: one is to distribute a portion of that to their shareholders, and to other one is to put those earnings as assets (whether by buying new machinery or simply as cash). Assets are the gross value of a stock, to calculate the net value though, we need to subtract the liabilities, and we will get the equity or net worth. From this we understand that when we buy a stock we get 2 things: we get a portion of that equity and the promise of future dividend. So what we need to do at this point is to calculate how much equity and dividend there are going to be from now to 10 years; this way we can calculate the minimum value of the stock 10 years from now. To calculate the future equity we just use the past, and forecast the growth by 10 years. We can project this growth in two different ways: one is exponential and one is linear, the former is more realistic and optimistic, the latter is more conservative. A value in between should be good. At this point, we have the future equity, but we cannot buy the entire equity, so we divide that by the number of shares outstanding, that way we can calculate the so-called book value, which is the amount of equity per share. Also to this we need to add all the dividends we are going to have for the next 10 years, to do so we assume that the next dividend is going to be the same as the average of the past 5 / 10 years, we moltiple the dividend/year 10 times and we get the probable amount of dividends we are going to have 10 years from now. Now we have the stock value in the future, this is what the company will give us 10 years from now, at this point, we need to discount this price by the risk-free-profit, which normally is the 10 years treasury bond. We do so by asking arouselves "What should be the price now, to have that value 10 years from now at a growth rate equal to the risk-free-profit?", it's kind of like doing the inverted exponential equation. The result that we get is the fair value of the stock, paying the stock more than that would mean putting ourselves at a greater risk. Of course, this is not a perfect formula, and does not take into account the valuation of the stock m ... https://www.youtube.com/watch?v=RWD3FsyuDNg

So, how do CFDs work? What are these Contracts for Difference? In this video we will analyze these questions and we will see why you must avoid CFDs!! CFDs are probably one of the most popular instruments that wanna be traders or investors start with, and let me tell you: is the worse. In this video, we will analyze what Contract for Difference (or CFDs) are, and we will talk about the reasons why you must avoid CFDs!! But hey, if we are just meeting: it's Dario, and this is Divity Trading, a platform where we can share our best tips and tools when it comes to trading, investing or finance in general. What you will find in the video: - 00:55 What are CFDs? - 01:20 The first big problem with CFDs. ... https://www.youtube.com/watch?v=Tvsl1be_AFg

So, how do I invest in Switzerland? How to I invest in the Swiss Stock Market? Should I even Invest in the Swiss Market? In this video I am going to talk about the pros and cons of investing in the Swiss market, what is the Swiss Stock Market, how is the Swiss Market made, what are the main Swiss Companies that make up the majority of the Swiss Market. In addition to this I will also cover a financial instrument, an ETF, that helps us to invest in the Swiss Market. But hey, if we are just meeting: it's Dario, and this is Divity Finance, a platform where we can share our best tips and tools when it comes to trading, investing or finance in general. ? Simple Economics Playlist: https://www.youtube.com/playlist?list=PLOh1JMHgcFPjoRD1zdAYHrS3YOgDBsrtK ? Coffee with the Markets Playlist: https://www.youtube.com/playlist?list=PLOh1JMHgcFPjjzJEDjRXPK-x7ok-8Sqla ✅ Join the Divity family now: https://www.youtube.com/channel/UCHAhpj2dBnKnE7j5_RikKBg?sub_confirmation=1 ✅ Follow me on Instagram: https://www.instagram.com/dario_culap/ Important notice: I don't give trading signals. Everything in this video is a personal opinion and shouldn't be taken as advice. This content is not presented, offered or intended as professional or expert advice, and is not to be used as a basis for financial, legal, or other decisions. #investing #trading #financialeducation ... https://www.youtube.com/watch?v=Ecb8Zwyd-40

Is Facebook dying, will it die soon? Well, this is a really interesting question especially now that Facebook has released the earnings, and we can actually analyze if Facebook is about to end, or if it still has big chance to grow!! As you saw from the title, I strongly believe that Facebook has the potential to become the next Amazon, in term of growth in the Stock Market of course. Even though the earnings and the Active Users are strongly increasing, the Income is, of course, going down due to the legal expenses they had to go through... and also if we make a little Facebook Stock Analysis, we can see that the market took that news quite negatively... But nonetheless, I see great potential for this company, especially because they are expanding in other sectors (the virtual reality with the Oculus, and the Financials with Libra). We will see, but for now, I'm strongly positive! But hey, if we are just meeting: it's Dario, and this is Divity Trading, a platform where we can share our best tips and tools when it comes to trading, investing or finance in general. ... https://www.youtube.com/watch?v=c2O3zsgkMpo