Intrinsic Value System

Intrinsic Value System

DCF Conclusion Studies Table (Top 10 Companies by Market Cap)

Valuation Levels on the market moving companies.

Larry Cheung, CFA
May 22, 2025
∙ Paid

Folks -

I’m going to share the DCF Conclusions Table of the top 10 market cap weighted stocks in the Nasdaq below. They represent 40% of the index. With this table, you can indirectly understand how much (or how little) upside the index has until earnings estimates change.

But before I do - let’s recap about the market. And let’s not worry (too much) about today’s decline.

A few weeks ago, moves like today happened every single day. With a few weeks of lull and complacency, today’s move has unnerved a lot of people. Embrace the volatility. There are NO opportunities if there are no dips.

Let me walk you through a simple framework to consider.

What: I think the market will attempt a rebound despite rising yields.

When: Rather soon.

How: Yields are more impactful to Small Caps than to Large Caps.

Why: Because we’ve seen this story before on yields going higher.

The key though is from what point the rebound will begin. It could be here directly; it could be from lower.

Point is, highly doubtful we go one straight line down from here based on this catalyst. Yields are a headwind. Not the guillotine for a bull market.

Best not to overcomplicate things. Today was a red day in markets. It was a green day for those who can trade intraday. And should we get a deeper dip, this will be great for swing/investing timeframes. Days like this are normal, healthy, and I would use the word Helpful for bulls.

Below, I’ll share my thoughts on both shorter-timeframes and longer-timeframes.

If you’re a new reader to my emails, take advantage of the resources I provide on Discord. It’s free to join, and it is designed for traders interested in ES/NQ as well as investors who want to learn financial modeling to take conviction positions.


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