How does one determine the intrinsic value (and therefore calculate an entry price after factoring in a margin of safety) for a ETF e.g. VOO or STI?

I get the whole don't time the market, time in the market > timing the market.

DCA is the general strategy, but there are just some times when DCAing alittle more (when you can DCA down) is a good idea. When these opportunities come knowing the intrinsic value, margin of safety and entry price increases conviction and boost confidence to pull the trigger.

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Kok Weng

27 Apr 2022

ETF contains a basket of stocks, therefore it is hard to calculate instrinsic value. Might as well just do the Dollar-Cost-Averaging method to accumulate small amount each month.

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Tan Choong Hwee

26 Apr 2022

Solutions Specialist at Providend

An ETF tracks the underlying stocks, hence its intrinsic value would be a weighted sum total of the intrinsic values of the underlying stocks. I don't think it is practical to accurately determine the ETF intrinsic value.

What you may want to look at are some metrics that give an indication of the market valuation, e.g. PE, CAPE,... You may increase your DCA amount when market is undervalued.

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Randy

26 Apr 2022

Financial Analyst at

There is no intrinsic value of an ETF, and in my opinion, technical analysis is only as good as the ...

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