This Intrinsic Value Calculator is based on Warren Buffett "Ten Cap Price" otherwise known as "Owner Earnings" calculation. Buffett is calling Owner Earnings: "the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses." Per Warren Buffett Value Investment Theory the buy decision should be based on several factors: 1. Company must have competitive advantage... 2. Company performed admirably in the past 10 years, recovered after
market correction(s) and recession(s)... 3. Company must have long term prospects - be relevant in 10 years from now... 4. Company's market price should be 20-30% less than calculated intrinsic value - margin of safety price. The logical question you would ask is how is it possible for such a good company to have the market price 20-30% bellow intrinsic value? The answer is: YES it's possible due to various reasons. The potential reasons could include: bad news about the company, company's industry is out of market favor, market is in correction or recession... YES, Recession! All statistical data show that we are in the next Market Bubble similar to "DOT-COM Bubble" of 2001 and "Housing Bubble" of 2008. It's just a matter of time before this Market Bubble is popped presenting an opportunity for Value Investors to buy their favorite stocks for less than intrinsic value! But in order to buy your favorite stocks for less than intrinsic value you need to know what this intrinsic value is. This is when our Intrinsic Value Calculator comes handy. You can calculate, store, reload and compare intrinsic value with market price anywhere and anytime, and all you need is your phone and our application.You can read more about Value Investing online. We would recommend - "The Intelligent Investor" book written by Benjamin Graham - Warren Buffett's teacher and the founder of Value Investment Theory.The goal of this application is to help value investors with calculation of intrinsic value. Most of the values required for calculation could be found on company's latest annual report. Annual reports can be found on company's website in investor relations section. Values missing in annual report could be found on GOOGLE. Each edit field has a corresponding help button to explain the meaning and location of the data on company's annual report."Examples" button would display actual values for Bank of America and all FAANG stocks: Facebook, Apple, Amazon, Netflix and Alphabet’s Google. Based on the calculated values representing the real value of these stocks we can conclude the next market bubble would be called "FAANG Bubble"."Save Data" button would save data to your phone storage at "IntrinsicValueData" folder as comma separated ".CSV" file."Load Saved Data" button would display list of files ".CSV" saved at "IntrinsicValueData" folder. ".CSV" files in "IntrinsicValueData" folder could be copied to PC and loaded to MS Excel for further analyses. ".CSV" files modified on MS Excel can be copied back to "IntrinsicValueData" folder. Try to keep the same format to avoid breaking Intrinsic Value Calculator.You can use this calculator literally anywhere, after all, it comes with your phone… It’s easy to use, all you need is to find and load annual report to your phone using internet browser as PDF file, search for required values, cut and paste values to the calculator and press Calculate button. Now you know if the stock is the bargain or overvalued based on company’s annual report and not on subjective calculations of various market analysts who could be biased based on their own long or short position on particular stock…This method doesn’t take growth into account. You can learn more about Warren Buffett Value Investing by following this link -> https://bestimplementer.com/value-investing-warren-buffet-strategy.html © 2019 Best Implementer LLC
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