Theoretically, Buffett advocates using the present value method to calculate the intrinsic value, that is, discounting the future earnings of this stock to the present, and this discounted value is the intrinsic value of the stock. The difficulty is that future earnings cannot be accurately predicted.

There are many books about Buffett in China, but few of them grasp the essence. The two formulas you mentioned are calculated by others trying to simplify the formulas, which have preconditions and limitations.