Hi Jae,
At first I have to admit that since I bought your spreadsheet I'm still very satisfied with the speed and enormous details which were put in. I'm an old fashioned 'spreadsheet'-calculator and mainly use your product for confirming the outcome my calculations. Keep up the good work :-)
MY QUESTION: when calculating the intrinsic value of a certain stock (I will use the example of JNJ in 'F Wall Street') and then check the '5YR Price vs Intrinsic Value'-graph (under the dashboard-tab), I can see that this graph does not show the calculated intrinsic value (red line) correctly. The current price drawn by the blue line shows up correct.
I have calculated JNJ's intrinsic value with a growth-rate of 9%, a discount rate of 10% and I'm using Owner Earnings. The calculated intrinsic price is US$ 80.19 (current market price at US$ 66.24).
In the '5YR Price vs Intrinsic Value'-graph I can see that the horizontal red line at the end (which should indicate the current calculated intrinsic value) is NOT leveled horizontally around this US$ 80.- level, but is hanging around US$ 60.-
In other words, according to the calculation of the latest data, JNJ is currently 18% below its assumed intrinsic value, although the graph doesn't show that. Instead, the graph shows the actual price (blue) of US$ 66.24 ABOVE the intrinsic value (red horizontal line).
Please advice.
Kind regards,
Roger
The Netherlands
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