How to find the stock value of a company?
To find the true value of the stock price of a company is a difficult task. In this excel sheet, we will find out the true value of stock price according to its growth rate. If predicted is less than the current market price of the stock share is overpriced but if the share value is less than the predicted price it is fairly priced in and in discount. As a thumb rule, it is suggested to find the stock with lower valuation and 30 discount from its true value
Procedure to find the stock value of the company:
- This method is based on the growth method
- Download the excel sheet from the link
- Enter the Actual Present share price in the excel sheet
- Enter the EPS growth assumption from this link
- Enter the future PE assumption in excel sheet
- Enter the earning per share from the link
- Enter dividend given in the year
- Enter the expected return per by company
Example to find the stock value of the company:
- Actual Present share price is 1224
- EPS growth assumption is 15 percent
- Future PE assumption is 10
- Earning per share for 2019 is 66
- The dividend is given in the year 2019 is 6.64
- Expected return by the company is 10 %
- Learn how to accumulate stock link
- Learn why trend line works from this link
Conclusion: Good value of reliance industries is 1144 and the stock is overvalued at current market
1 Comments
learn to calculate the actual value of stock price
ReplyDeleteThank you for your valuable comment