• Income Statement: Focus on revenue growth, profit margins, and net income trends.
• Balance Sheet: Look at debt levels, assets, and shareholder equity.
• Cash Flow Statement: Analyze operating cash flow and free cash flow (FCF).
  A consistent rise in revenue and FCF often indicates a financially healthy company.

• Current FCF (from cash flow statement)
• Expected annual growth rate (5-10% for stable companies)
• Discount rate (typically 8-10%)
• Terminal growth rate (1-3%)
  The formula discounts each year's projected FCF to present value and adds a terminal value.
• Want to calculate future cash flow? FCF calculator.

After calculating the present value of all future cash flows:

• Add them together
• Subtract net debt
• Divide by the number of outstanding shares
  This gives you the intrinsic value per share, which you can compare with the current market price.
• Want to know fair value or intrinsic value of any stock? Fair value calculator.

• If intrinsic value > current price → stock may be undervalued
• If intrinsic value < current price → stock may be overvalued
• Want to know stock is undervalue or overvalue?
  
  Find fair value of any S&P 500 companies.