 Hey guys, welcome to another video. We're gonna look at snapchat. We are gonna predict the future Don't you wish you could predict the future? I'm sure we all wish we could predict the future But you kind of can you kind of can because unlike a lot of other things unlike silver unlike Gold unlike maybe even crypto Snapchat like other stocks is a business and We can roughly estimate or at least analysts can't I can't but analysts can estimate and tell us How good or how bad the business is doing and they do that with sites like? seeking alpha When you go to seeking alpha They tell you what analysts are expecting for earnings So here we are we have the analyst expectations For 2023 24 25 26. We have multiple years of analyst expectations Alright, so what is what is what good does that do for us? Well, we can estimate the value in the future And then we can also play with different prices to figure out where we would want to buy it Where the price is too high and a pass Where it's super cheap and a buy and the way you do it is you got to have Evaluation methodology you got to have a system And this is why those old men those old wise old men. They're so useful They've lived over some of them almost a hundred years like Warren Buffett and Peter Lynch And they they give us insights and this is where we apply their insights So I have here the years. I have the earnings per share All from seeking alpha. These aren't my numbers. These are seeking alpha and you can get them from multiple sources Once you have those earnings and you apply some formulas You can get a few different valuations and look at the potential future and it'll change. I promise that So if we have the furthest year out, we have 20 28 And I can tell you that hey in a good market Snapchat if they earn the dollar in 2028 which we got from seeking alpha if they earn a dollar two or a dollar three Well, that company will have Four different potential stock prices in a good market. It could be worth $31 which is twice the growth rate peg ratio peg to I call it Twice the growth rate times the dollar gives us 31 bucks We would make a profit wouldn't we? In a weaker market, you might get something closer to $15 or if it's an average PE Also, $15 or if something really bad is going on, but they still earn a dollar It might be worth eight dollars. So now we know roughly What we would expect or hope for in the future however We don't have to pay the $10 and 69 cents Which is what snapchat is going at we cared we could Run a hypothetical. What if it's worth 15? What if it's worth? 7 so I Know recently it traded around 7 so let's say Let's let's say Let's say the lowest price was 768 What would our return be if we paid 768 and I have that down here at the bottom if If we pay the current price, we will get some Return for that given year. So we're looking at 2028 28. Let's say it's 768 and We're gonna We're gonna look at the return if we buy it at 768 Well, we know that if we buy it at 768 and it goes to $31. Obviously, what is that quadruple your money? And the return at 31 that would be the same thing as earning 32 percent In the bank if it doesn't go to $31 and instead it goes to $15 which is one times the growth rate. Well, then we get a 15 percent Compounded annualized return. So this takes time into Into the equation I Recommend you get yourself one of these worksheets for yourself I made my own, but there's a lot of a lot of worksheets that you can download off the internet Or you can you make your own form? because You can really do a fantastic analysis. I have a bunch of different other Stock worksheets like I have one here for Palantir. I have one here for coupang But you you want to have You want to have a map of the potential future for a business. It just Helps helps you make decisions faster. The market moves quick If the market goes down you go to your worksheet and you say wait, what what is this business doing? Do I like it here? Do I not? Valuation I love valuation So hope you found it useful If you did let me know if you want me to look at another stock with my worksheet go ahead and comment cheers