[Prompt] How to Use ChatGPT as a Stock Analyst (DCF) : Chris

[Prompt] How to Use ChatGPT as a Stock Analyst (DCF)
by: Chris
blow post content copied from  Be on the Right Side of Change
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Step 1: Visit the Yahoo Finance website of the stock you want to analyze. In my case, it was the NVIDIA and GOOGLE stocks.

👉 https://finance.yahoo.com/quote/NVDA/key-statistics

Step 2: Take a screenshot of the statistics tab using the screencapture software of your choice. Save everything including the non-visible parts of the page:

Step 3: Paste the screenshot into your ChatGPT (e.g., 4o) prompt and add the following text to the prompt:

Analyze this stock - give me a unique perspective on whether it's overvalued or undervalued assuming a 15% discount rate

Step 4: Wait for the stock analysis and use follow-up prompt — e.g., to find the implicit growth rate of the stock based on the current market cap:

Please figure out the growth assumptions implicit in the market cap assuming a growth period of 10 years and different growth rates until you find the growth rate assumed by the market

In my case, ChatGPT figured out that given my 15% discount rate and a terminal 3% growth after 10 years, the market currently assumes a 42.77% implicit growth rate of free cash flows. Judge for yourself if you find this reasonable!

If you want a more fine-grained qualitative analysis, check out my valuation here:

👉 Valuing $NVIDIA as a Real Estate Company That Sells Housing to AI Agents ($100k/Share in 2034)

May 18, 2024 at 05:51PM
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