The calculator

How is the second part of the intrinsic value calculator structured?

Comments

  • I got the answer! There is no need for help.
  • Hi could someone assist me with the second part of the calculator. I have tried various formulas but I end up getting between 42USD and 45USD which might end up me buying such a share. I would like to put the formula into an Excel sheet.
  • Hi Nic,

    I'm not sure of the exact formula that Preston and Stig use for the DCF calculator but it is most likely the same as this;

    DCF = CF1/(1+r)1 + CF2/(1+r)2 + CF3/(1+r)3 ...+ CFn/(1+r)n

    CF1 = cash flow in period 1
    CF2 = cash flow in period 2
    CF3 = cash flow in period 3
    CFn = cash flow in period n
    r = discount rate (also referred to as the required rate of return)

    I hope this helps and if you have any more questions please don't hesitate to ask.

    Regards,

    Anaximander
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