I'm going to show you a way to find the stocks

I'm going to show you a way to find the stocks of actual value. In this example, we're going to be looking at PayPal. Everyone has been saying PayPal is undervalued lately. What we're going to need is the earnings per share, the projected growth rate, our minimum rate of return that we want, as well as our margin of safety or the discount we want to buy the stock at. The P/E Ratio. We can find the earnings per share on Yahoo Finance easily and see that it's 4.16. Then we're going to head to the analysis tab on Yahoo Finance and scroll down until you see the growth estimates for the next five years per annum, and we can see it's 20.43%. So we put that into growth rate. And then for our minimum rate of return, we're going to put in 15% because when we pick individual stocks, we want to beat the stock market return of about 10% per year. So then we're left with our safety margin. We're going to put in 50% because we want to buy at a discount. Our P/E ratio then can be found easily on Yahoo Finance once again, 44.77. After we have all those variables, we're going to want to extend this out for 10 years to calculate the future earnings per share. So for year one, our EPS is 4.16. To calculate the future years, we're going to multiply that by our 20% growth rate and extend that out 10 years to get our projected earnings per share rate of 22. Then we take that figure and multiply it by our P/E ratio to get our forecasted stock price in 10 years from now, and we get 992. We then take that number and divide it by two because we want to buy for 50 cents on the dollar, and we get 141. PayPal's current price of 186 is not 50 cents on the dollar, but it is going for a discount right now. If you're still here, FOLLOW