Great Analysis, Victor. It's the best I've seen on TH-cam. You do a serious Deep Dive, and I appreciate it. You've earned a permanent subscriber. Awesome portfolio btw!
Love the analysis Victor. Do you think you would be able to revisit TSMC since it's been over a year since your last analysis and much has changed. Thank you!
Intel is a badly managed company, poor execution, and behind competition in almost everything (consumer CPUs, server CPUs, AI accelerators, chip designs, process nodes, chip foundry). It’s a turnaround story, but I’m not betting on Intel’s current management. Just poor execution.
Thanks for the analysis, Victor. One question about your DCF- why use a terminal growth rate of 7.5%? That seems high when most models use between 2-4%.
Good question, it really depends on the business. For traditional businesses like Walmart, I think it makes sense for the terminal growth rate to be around 2% to 5%. But for SaaS businesses (eg Adobe, Salesforce, Intuit Inc, etc.), It’s very common for them to grow their revenue by around 8% to 12% consistently each year because of subscription revenues, increasing subscribers, new products, and new subscription plans with higher prices. Hence I think the terminal growth rate of 7.5% is reasonable.
@@TheIntelligentInvestor makes sense. I saw an article that the terminal growth rate should be a company’s reinvestment rate (CAPEX + changes in working capital / net income) * ROIC. I think that’s a great way to look at it as it removes another manual input/bias from the model.
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Victor holy cow man blown away I’ve been searching for months for something this in-depth
Thanks for watching! It took me two weeks to research and make this video.
Great Analysis, Victor. It's the best I've seen on TH-cam. You do a serious Deep Dive, and I appreciate it. You've earned a permanent subscriber. Awesome portfolio btw!
Thanks Shannon! Appreciate your support!
wow nailed this one victor - well done !!!!
Thanks it was a bit of luck + a lot of research:)
Great work Victor. Last couple companies I've worked for use NOW and we're always using more and more of their service.
Thx Michael, the company I work for also use ServiceNow.
Can you revisit Mastercard and Visa's long term prospects in light of positive and negative developments like Visa Direct, CBDCs, and PIX?
Love the analysis Victor. Do you think you would be able to revisit TSMC since it's been over a year since your last analysis and much has changed. Thank you!
Good idea, I’ll make an updated TSMC video soon. I’m working on ARM Holdings next.
Just joined your Patreon and will join the discord tomorrow.
Bill McDermot is a great CEO. As long as he's with NOW we're in good hands.
I agree, he used to run SAP before.
Great analysis, what is your opinion about INTC?
Intel is a badly managed company, poor execution, and behind competition in almost everything (consumer CPUs, server CPUs, AI accelerators, chip designs, process nodes, chip foundry). It’s a turnaround story, but I’m not betting on Intel’s current management. Just poor execution.
Thanks for the analysis, Victor. One question about your DCF- why use a terminal growth rate of 7.5%? That seems high when most models use between 2-4%.
Good question, it really depends on the business. For traditional businesses like Walmart, I think it makes sense for the terminal growth rate to be around 2% to 5%. But for SaaS businesses (eg Adobe, Salesforce, Intuit Inc, etc.), It’s very common for them to grow their revenue by around 8% to 12% consistently each year because of subscription revenues, increasing subscribers, new products, and new subscription plans with higher prices. Hence I think the terminal growth rate of 7.5% is reasonable.
@@TheIntelligentInvestor makes sense. I saw an article that the terminal growth rate should be a company’s reinvestment rate (CAPEX + changes in working capital / net income) * ROIC. I think that’s a great way to look at it as it removes another manual input/bias from the model.
Thx for the suggestion, let me try that formula.
Great channel
Hi Victor, thanks for your great sharing. Recently Visa has been falling. Would you come out with a video update for the latest visa?
Good idea that’ll probably be in the next few weeks.