Is Novo Nordisk Stock CHEAP Right Now? | Intrinsic Value Analysis #NVO

should you invest in this company right now we're going to calculate the Stock's intrinsic value using my intrinsic value model and find out first you'll need to get some requirements out of the way the stock will need to have a positive earnings per share or else the numbers get quite fuzzy and if the five-year projected growth rate isn't available we're just going to put 0% it'll all make sense when you go through it we're going to look at four ining value prices based on a 5year 10e 20e and 30-year time frame you can see in gold where your focus should be based on your investment time Horizon and also the further we project out the higher our accuracy based on my intrinsic value model for all my intrinsic value models we're going to need the Stock's earnings per share its growth which matches the long-term growth of the S&P 500 as our Baseline returns and then we have Wall Street's projected earnings growth Forin the first 5 years which is used as our base growth for all our models for the stocks 5year model I'm assuming earnings continues to match inflation for the rest of its existence and doing the calculation yields the current intrinsic value which remember is a valuation for short-term investors so if you're planning to hold a stock for just a couple years you'll look at this intrinsic value for the Stock's 10-year model I'm assuming earnings will match inflation for year 6 to 10 and then my assumption is that earnings will stop growing entirely for the rest of the existence that yields the current intrinsic value which should be the focus for investors holding for around 10 years for the stocks 20-year model I'm assuming earnings will match inflation for years 6 to 10 and then cease to grow at all years 11 to 20 and then after that I'm making a conservative estimate that earnings will actually decline 3% per year for the rest of its existence that yields the current intrinsic value which should be the focus for midlife professionals who have about 20 years left in their investing lifetime before we continue join my patreon you'll get access to every company I've analyzed good for short-term and long-term investors it's updated all the time go to patreon.com grar or click on the link in the description and for the Stock's 30-year model same assumptions for the first 30 years but then after that I assume earnings will accelerate its decline to 5% per year after that until the end of time or when the company ceases to exist whichever comes first this yields the current intrinsic value for very long-term investors who have a majority of their life to invest now to account for any errors I included an optional 10% margin of safety which I personally use this will lower the intrinsic value by 10% and make the stock 10% more overvalued but it does mean there's room to maneuver here's the adjusted intrinsic values after I include the margin of safety note that when I value a company I use the 10% margin of safety using the 30-year model not everyone is going to hold this stock forever but for however long you're going to own it you'll know its intrinsic value let's go back to the S&P 500's long-term growth you can adjust this number to whatever you like basically if you want a 10% return per year that's the intrinsic value but if you're aiming for a 20% return for example you can put 20% and it'll adjust the intrinsic value you can see here that it makes the stock more overvalued if you're looking for higher returns you'll need to pay a lot less keep that in mind but I like to keep it at 10% you know the Stock's intrinsic value but an undervalued stock doesn't necessarily mean it's a good investment and an overvalued stock doesn't mean it's a bad investment I have a series of videos that look at the entire company from its business to its stock and puts it all together to tell us whether we should buy or not go check it out if you found this video helpful leave a like And subscribe invest wisely and as always take care of your money