In this educational video Roger shares the steps for estimating intrinsic value using the formula from his book Value.able. Back in February 2011 when he applied the formula to Woolworths Roger arrived at an intrinsic value of $23.36. Today, he share with you the steps to update the estimated intrinsic value of Woolworths keeping in mind the biggest change over the last 10 years – a significant decline in interest rates.

Discover how to value the best stocks and buy them for less than they’re worth here.

The Montgomery Funds own shares in Woolworths. This article was prepared 30 April with the information we have today, and our view may change. It does not constitute formal advice or professional investment advice. If you wish to trade Woolworths you should seek financial advice.