How Peter Lynch Values a Stock (Valuation Tutorial)
Between 1977 and 1990 Peter Lynch made incredible average annual returns of 29.2%.
In this video we start by briefly reviewing his valuation philosophy for a minute before analysing his best tool for finding excellent investments which is his Fair Value formula.
Then we look at how to use his formula with a stock example, and in the final part we’ll go through its strengths and weaknesses.
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Timestamps:
0:00 - 1:38 - Peter Lynch’s Valuation Philosophy
1:38 - 5:13 - Fair Value Formula
5:13 - 5:48 - Microsoft example
5:48 - 7:53 - Pros & cons
7:53 - 9:11 - Summary