hi i'm jimmy in this video we're looking
to find some of the top value stocks
since the stock market has been pulling
back a bit we could see year to date the
stock market's down about 10 percent so
we're trying to find some value stocks
that could be good additions to our
overall portfolio here now all of these
stocks came out of our
dcf live stream so we do these
discounted cash flow live streams every
week with our private investing
community and i'll show you how the
calculator works as we go along but if
you'd like to sign up to get access to
the community and to the website that
will ultimately do this calculation for
us the web site should be up and running
by the end of june this year so in
within a few weeks we're expecting to
have some hopefully good news about when
it's going live should be very soon that
being said if you want to sign up i'll
leave a link in the description below in
the meantime let's jump over to our
first potential value stock by the way
all these stocks are all stocks that
look like they're undervalued right now
and stocks that i think we should
consider doing a deeper dive on the
first one is micron technologies now as
we could see micron technology is
currently trading at about 70 bucks per
share we're getting a fair value using
our seven and a half percent required
rate of return of about and 164 dollars
per share now many people question why
i'm using seven and a half percent i'm
doing it because it's a premium over
corporate bonds but if you didn't want
to use that a more textbook number to
use is the company's own weighted
average cost of capital that will be
different for every company will vary
from from you know over time the comp
the number will gradually change even
using that we have micron technologies
coming up at 105 dollars per share now
the way this website will ultimately
work and the way this spreadsheet is
working is it takes analyst estimates
for free cash flow it discounts those
back to today and then it grows it out
forever using our perpetual growth rate
we're using two and a half percent
that's about the average growth of the
global economy well again with that it
looks like this stock could be
undervalued by a decent amount so this i
think is one of those companies that we
want to do more research on and we can
see that the stock is also paying about
a half a percent dividend yield not bad
nothing to write home about but it is
certainly something to pay attention to
they have more cash and they have debt
so that adds to the overall value of the
company okay now we're jumping over to
our next value stock on the list and
this comes out of the london stock
exchange skg and we can see that this
stock using seven half percent looks
reasonably undervalued now they do have
a higher cost of capital and if that's
the case when we do our research we
might decide to go with their almost 13
percent cost of capital but even if we
used 10 percent this stock still looks
undervalued now one of the advantages to
this packaging company is that perhaps
this adds some international
diversification for those that live in
the united states and if you live abroad
well perhaps this is one of those
companies that you could get at a
reasonable price now if you're curious
when we get when we launch the website
it is going to have global stocks we've
got about you know i think it's about a
dozen or so of the world's biggest
exchanges we're going to cover so i
think skg looks like a stock that we
should do a deeper dive on and this
could be a great value stock to consider
okay next stock we're going back to the
us with applied materials now applied
materials to me is very interesting
we've got enough analyst coverage we've
got 10 analysts covering it in 2022 then
9 then 5 and 20 24. those are pretty
good numbers on average i usually try to
pay attention to how many analysts are
projecting each number if it's too low
you can take it with more of a grain of
assault more of a grain of salt but if
there's a lot of analysts those numbers
tend to be somewhat reliable that being
said we are showing decent growth in the
first year and then it goes somewhat
flat even with those flat numbers though
again using seven half percent and ten
percent well the stock looks like it
could be undervalued they got us they do
pace a little bit of a dividend about
one percent
and their p e is sitting at about 16 x
right now so overall applied materials
to semiconductor company looks like it
could be a good value stock okay next up
we got a stock called lido's holdings
ticker symbol ldos we could see that
this one with our seven half percent
required rate of return gets a fair
value of about 118 per share their
weighted average cost of capital is
lower than that and that comes in at
152. now for me i'd be a bit more
conservative and stick with the 118 per
share but overall we get a decent amount
of analysts projecting these numbers
growth is gradually increasing so
overall this looks like a stock that
could be worth doing a deeper dive on
since lightest holdings could be one of
those stocks that do very well over the
coming years if we can get it at a good
price okay next up we've got lowe's so
lowe's is actually one of my favorite
stocks out there they pay a small
dividend but from a value perspective at
seven and a half percent they get a fair
value of 238 at their own weight average
cost of capital we're talking 192. if i
can get this stock below 192 that's
ideal for me in my mind we can see that
looking at the free cash flow numbers
that analysts are projecting out well
that growth is gradually ramping up for
year to year and it looks pretty good
their p e ratios at about 17x compared
to their own history that looks pretty
good compared to the sector average or
the industry average sector average that
looks quite good as well so overall
lowe's is a stock that i'm very
interested in now if you'd like to sign
up to get access to our website which
again is coming over the next month or
two well i will leave a link in the
description below i'll leave a link
right here and thank you so much for
sticking with me all the way to the end
of the video let me know in the comments
below which one of these companies you
think we should do a deeper dive on
first thanks and i'll see in the next
video