Caterpillar Inc

NYSE:CAT

To calculate the intrinsic value of a stock, we use two valuation methods: DCF Valuation and Relative Valuation.

We take the average of these two methods to estimate the intrinsic value as accurately as possible.

The intrinsic value depends on the future of the company. But the future is not predetermined. As is the intrinsic value.

There is no absolute intrinsic value. The true value lies somewhere between the worst case and best case scenarios. Knowing the full range of possible stock intrinsic values gives a complete picture of the investment risks and opportunities.

The intrinsic value depends on the future of the company. But the future is not predetermined. As is the intrinsic value.

Because of this, the intrinsic value is not an absolute number, but rather a range. We present this range in a form of a bear, base and bull case scenarios.

Knowing the full range of possible stock intrinsic values gives a complete picture of the investment risks and opportunities.

Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.

Peter Lynch

It isn't a coincidence that corporate executives seem to always buy at the right times. After all, they have access to every bit of company information you could ever want. However, the fact that company executives have unique insights doesn't mean that individual investors are always left in the dark. Insider trading data is out there for all who want to use it.