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Some Questions Answered: The Fair Value Estimate Range and ROIC

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Q: In the 16-page stock reports, why doesn’t the ‘percentage undervalued / overvalued’ match up to the actual discount/premium to Valuentum’s fair value estimate of the company? A: We view the intrinsic value of a company as a Fair Value Range, not necessarily a single point estimate, so the undervalued and overvalued calculations match up to either the low fair value estimate or high fair value estimate, respectively. Within the context of a margin of safety, we wouldn’t necessarily view a company to be worth precisely $55 per share, for example; instead we’d view the company as worth between $50 (low end fair value estimate) and $60 per share (high end fair value estimate), with the low and high fair … Read more

PayPal Expects to Double Its Annual Free Cash Flows By 2025

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Image Shown: PayPal Holdings Inc views its total addressable market across the payment processing and solutions sitting at approximately $110 trillion, an enormous opportunity that the firm is well-positioned to capitalize on. Image Source: PayPal Holdings Inc – 2021 Investor Day Presentation By Callum Turcan We continue to be huge fans of PayPal Holdings Inc (PYPL) and include shares of PYPL as a top-weighted idea in the Best Ideas Newsletter portfolio. As of this writing, shares of PYPL have surged higher by ~140% over the past year as the company’s business model has proven to be incredibly resilient in the face of the coronavirus (‘COVID-19’) pandemic. PayPal’s ability to generate meaningful free cash flows in almost any environment is supported … Read more