Relative (Stock) Valuation Model
Product Description
This fully automated application relies on Price Multiple, or so called Relative Valuation Techniques to determine the intrinsic stock value. The model supports four such valuation techniques:
1. Price/Earnings (P/E) Ratio;
• Enter Expected dividend Pay-Out Ratio, Estimated Required Rate of Return (RRR), Expected Growth Rate (g); and Expected Earnings Per Share (EPS) into the model and see what the fair intrinsic value of the stock should be based on P/E Multiple Valuation Method;
• Note however that all model inputs above are expected or estimated, meaning that model inputs are not readily available and should be estimated/forecasted. This suggests that model outcome (stock price) would be as accurate as the estimates used. The application however, is a strong scenario, sensitivity and risk analysis tool.
2. Price/Cash Flow Ratio;
• Enter Current and Expected Free Cash Flow Per Share, and Current Stock Price into the model;
• Current Free Cash Flow and Current Stock Price are easily and reliably identifiable. Expected Free Cash Flow Per Share on the other hand, needs to be estimated/forecasted. Just as with P/E Ratio Model, reliability of forecasted stock price will depend on the accuracy of estimate (Expected Free Cash Flow Per Share in this case), but model is still a great scenario, sensitivity and risk analysis tool.
3. Price/Book Value Ratio;
• Enter Expected Book Value Per Share, Return on Equity (ROE), Growth Rate (g), and Required Rate of Return (RRR) into the model;
• Again model output accuracy will depend on how well the Expected Book Value Per Share is estimated. But again, application is a good valuation model.
4. Price/Sales Ratio.
• Enter Current and Expected Sales, and Current Stock Price into the Model.
This model allows users to value stocks with 4 most popular price multiple valuation methods.
The model supports four different theme colors (Olive Green, Dark Blue, Black, Dark Orange) for user convenience.
***NOTE: xlsm format requires MS Office 2007!
***NOTE: THIS IS A VBA PROJECT. PLEASE ENABLE MACROS BEFORE USING!!!
1. Price/Earnings (P/E) Ratio;
• Enter Expected dividend Pay-Out Ratio, Estimated Required Rate of Return (RRR), Expected Growth Rate (g); and Expected Earnings Per Share (EPS) into the model and see what the fair intrinsic value of the stock should be based on P/E Multiple Valuation Method;
• Note however that all model inputs above are expected or estimated, meaning that model inputs are not readily available and should be estimated/forecasted. This suggests that model outcome (stock price) would be as accurate as the estimates used. The application however, is a strong scenario, sensitivity and risk analysis tool.
2. Price/Cash Flow Ratio;
• Enter Current and Expected Free Cash Flow Per Share, and Current Stock Price into the model;
• Current Free Cash Flow and Current Stock Price are easily and reliably identifiable. Expected Free Cash Flow Per Share on the other hand, needs to be estimated/forecasted. Just as with P/E Ratio Model, reliability of forecasted stock price will depend on the accuracy of estimate (Expected Free Cash Flow Per Share in this case), but model is still a great scenario, sensitivity and risk analysis tool.
3. Price/Book Value Ratio;
• Enter Expected Book Value Per Share, Return on Equity (ROE), Growth Rate (g), and Required Rate of Return (RRR) into the model;
• Again model output accuracy will depend on how well the Expected Book Value Per Share is estimated. But again, application is a good valuation model.
4. Price/Sales Ratio.
• Enter Current and Expected Sales, and Current Stock Price into the Model.
This model allows users to value stocks with 4 most popular price multiple valuation methods.
The model supports four different theme colors (Olive Green, Dark Blue, Black, Dark Orange) for user convenience.
***NOTE: xlsm format requires MS Office 2007!
***NOTE: THIS IS A VBA PROJECT. PLEASE ENABLE MACROS BEFORE USING!!!
Share Your Favorite Models on Other Social Networks:
= = = = = = = = = = =
Subscribe to Newsletter