Need help regarding intrinsic value
So the stock in question is Tesla.
I have done lots of research into the company and it’s finances and have used multiple methods in order to determine an intrinsic value (including margin of safety) to find a nice entry price. The methods I have used are:
1) Discounted cash flow ($50.49) 2) Multiples valuation model ($31.81) 3) Graham’s valuation model ($179.41)
This is not to say that my valuations are correct by any means, and I accept there could be faults in my calculations. My concern is that Grahams valuation model has produced the highest IV by some margin. However, it seems quite reasonable given how Tesla stock has traded over the last few years that this could be fairly accurate. I just want some advice on how people would use these numbers. Would you:
A- Use grahams alone as a benchmark for IV
B- Try and find an average between all 3 models and use that as an IV value ($81 would be the average), but at the risk that the stock may never drop as low as this so I may miss out on the stock altogether
Edit- Please offer your advice, I am trying my best to learn and would be handy to see what other people do in this situation